NEWARK, Ohio, July 28, 2014 (GLOBE NEWSWIRE) — Park National Corporation (Park) (NYSE MKT:PRK) today reported an increase in net income and other financial results for the three months (second quarter) and six months (first half) ended June 30, 2014. Park’s board of directors declared a quarterly cash dividend of $0.94 per common share, payable on September 10, 2014 to common shareholders of record as of August 22, 2014.
Net income for the second quarter of 2014 was $21.8 million, compared to $20.0 million for the same period in 2013, an increase of $1.8 million, or 9.0 percent. Net income per diluted common share for the second quarter of 2014 was $1.42, compared to $1.30 in the same period of 2013.
Net income for the six months ended June 30, 2014 was $41.4 million, compared to $40.7 million for the same period in 2013, an increase of $0.7 million, or 1.7 percent. Net income per diluted common share for the first half of 2014 was $2.69, compared to $2.64 in the same period of 2013.
Park’s community-banking subsidiary, The Park National Bank, reported net income of $41.8 million for the six months ended June 30, 2014, compared to net income of $40.3 million for the same period of 2013. The Park National Bank had total assets of $6.7 billion at June 30, 2014 and $6.5 billion at June 30, 2013. This performance generated a return on average assets of 1.26 percent and 1.24 percent for the bank for the periods ended June 30, 2014 and 2013, respectively.
“Individuals and businesses in our communities are ready to borrow. Our reputation as a reliable local lender leads them to us. And, while we can’t compel people to borrow money – and don’t want to – when they are ready, we are here for them,” said Park President David L. Trautman.
The Park National Bank loan portfolio experienced solid growth during the second quarter of 2014 and first half of 2014. Loans outstanding at June 30, 2014 were $4.68 billion, compared to $4.57 billion at March 31, 2014, an increase of $113 million or an annualized 9.89 percent. Loan growth through the first six months of 2014 was $120 million, an annualized increase of 5.3 percent, compared to the $4.56 billion outstanding at December 31, 2013. The $120 million increase in loans through the first six months of 2014 was primarily related to growth in the consumer loan portfolio, which increased by approximately $100 million.
“Whether it’s someone who had a good experience with a recent mortgage refinance here or someone who appreciates our extended-hour responses and approvals, more people are choosing us for their vehicle loans – and we are pleased to serve them,” Trautman said.
Headquartered in Newark, Ohio, Park National Corporation had $6.8 billion in total assets (as of June 30, 2014). The Park organization principally consists of 11 community bank divisions, a non-bank subsidiary 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 Bank Division, United Bank, N.A. Division, Second National Bank Division, Security National Bank Division, Unity National Bank Division, and The Park National Bank of Southwest Ohio & Northern Kentucky Division; and Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance). The Park organization also includes Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Park cautions that any forward-looking statements contained in this Current Report on Form 8-K or made by management of Park 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: Park’s ability to execute its business plan successfully and within the expected timeframe; general economic and financial market conditions, and the uneven spread of positive impacts of the recovery on the economy, specifically in the real estate markets and the credit markets, either nationally or in the states in which Park and its subsidiaries do business, may be worse or slower than expected which could adversely impact the demand for loan, deposit and other financial services as well as loan delinquencies and defaults; changes in interest 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; changes in unemployment; asset/liability repricing risks and liquidity risks; our liquidity requirements could be adversely affected by changes to regulations governing bank capital and liquidity standards as well as by changes in our assets and liabilities; competitive factors among financial services organizations could 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 “Dodd-Frank Act”), as well as future regulations which will be adopted by the relevant regulatory agencies, including the Consumer Financial Protection Bureau, to implement the Dodd-Frank Act’s provisions, the Budget Control Act of 2011, the American Taxpayer Relief Act of 2012 and the Basel III regulatory capital reforms; the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board, the SEC, the Public Company Accounting Oversight Board and other regulatory agencies, and the accuracy of our assumptions and estimates used to prepare our financial statements; the effect of fiscal and governmental policies of the United States federal government; the adequacy of our risk management program; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors and other service providers, including as a result of cyber attacks; 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, 2013. Park does not undertake, and specifically disclaims any obligation, to publicly release the results 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 was made, or reflect the occurrence of unanticipated events, except to the extent required by law.