Quick10K

Park National

Market

Closing Price ($)	Shares Out (MM)	Market Cap ($MM)
$0.00	17	$1,629

Financial Filings

10-Q	2019-11-04	Quarter: 2019-09-30
10-Q	2019-08-02	Quarter: 2019-06-30
10-Q	2019-05-02	Quarter: 2019-03-31
10-K	2019-02-26	Annual: 2018-12-31
10-Q	2018-11-02	Quarter: 2018-09-30
10-Q	2018-07-27	Quarter: 2018-06-30
10-Q	2018-05-02	Quarter: 2018-03-31
10-K	2018-02-27	Annual: 2017-12-31
10-Q	2017-10-31	Quarter: 2017-09-30
10-Q	2017-07-27	Quarter: 2017-06-30
10-Q	2017-04-27	Quarter: 2017-03-31
10-K	2017-02-21	Annual: 2016-12-31
10-Q	2016-10-28	Quarter: 2016-09-30
10-Q	2016-07-28	Quarter: 2016-06-30
10-Q	2016-04-27	Quarter: 2016-03-31
10-K	2016-02-18	Annual: 2015-12-31
10-Q	2015-10-27	Quarter: 2015-09-30
10-Q	2015-07-28	Quarter: 2015-06-30
10-Q	2015-04-27	Quarter: 2015-03-31
10-K	2015-02-24	Annual: 2014-12-31
10-Q	2014-10-28	Quarter: 2014-09-30
10-Q	2014-08-01	Quarter: 2014-06-30
10-Q	2014-05-02	Quarter: 2014-03-31
10-K	2014-02-25	Annual: 2013-12-31
10-Q	2013-11-01	Quarter: 2013-09-30
10-Q	2013-08-02	Quarter: 2013-06-30
10-Q	2013-05-02	Quarter: 2013-03-31
10-K	2013-02-26	Annual: 2012-12-31
10-Q	2012-11-07	Quarter: 2012-09-30
10-Q	2012-08-03	Quarter: 2012-06-30
10-Q	2012-05-04	Quarter: 2012-03-31
10-K	2012-02-29	Annual: 2011-12-31
10-Q	2011-11-09	Quarter: 2011-09-30
10-Q	2011-08-15	Quarter: 2011-06-30
10-Q	2011-05-04	Quarter: 2011-03-31
10-K	2011-02-28	Annual: 2010-12-31
10-Q	2010-11-02	Quarter: 2010-09-30
10-Q	2010-08-03	Quarter: 2010-06-30
10-Q	2010-04-30	Quarter: 2010-03-31
10-K	2010-02-24	Annual: 2009-12-31

Current Reports

8-K	2019-12-03	Officers, Exhibits
8-K	2019-11-13	Regulation FD, Exhibits
8-K	2019-10-28	Earnings, Regulation FD, Other Events, Exhibits
8-K	2019-07-22	Earnings, Regulation FD, Other Events, Exhibits
8-K	2019-06-20	Enter Agreement, Off-BS Arrangement, Exhibits
8-K	2019-04-22	Officers, Shareholder Vote, Exhibits
8-K	2019-04-22	Regulation FD, Exhibits
8-K	2019-04-19	Earnings, Regulation FD, Other Events, Exhibits
8-K	2019-04-01	Other Events, Exhibits
8-K	2019-02-13	Regulation FD, Exhibits
8-K	2019-01-28	Earnings, Officers, Regulation FD, Other Events, Exhibits
8-K	2019-01-14	Other Events
8-K	2018-12-17	Other Events
8-K	2018-12-04	Officers, Exhibits
8-K	2018-11-19	Officers, Exhibits
8-K	2018-11-06	Regulation FD, Exhibits
8-K	2018-10-22	Earnings, Regulation FD, Other Events, Exhibits
8-K	2018-09-13	Other Events, Exhibits
8-K	2018-09-12	Enter Agreement, Exhibits
8-K	2018-07-23	Earnings, Regulation FD, Other Events, Exhibits
8-K	2018-07-09	Other Events, Exhibits
8-K	2018-07-01	Other Events, Exhibits
8-K	2018-06-22	Enter Agreement, Off-BS Arrangement, Exhibits
8-K	2018-06-14	Other Events, Exhibits
8-K	2018-05-17	Enter Agreement, Off-BS Arrangement, Exhibits
8-K	2018-04-23	Regulation FD, Other Events, Exhibits
8-K	2018-04-23	Shareholder Vote
8-K	2018-04-20	Earnings, Regulation FD, Other Events, Exhibits
8-K	2018-02-07	Regulation FD, Exhibits
8-K	2018-01-23	Other Events, Exhibits
8-K	2018-01-22	Enter Agreement, Exhibits
8-K	2018-01-22	Earnings, Regulation FD, Other Events, Exhibits

Park National Earnings 2019-09-30

PRK 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow

Comparables ($MM TTM)
Ticker	M Cap	Assets	Liab	Rev	G Profit	Net Inc	EBITDA	EV	G Margin	EV/EBITDA	ROA
SFBS	1,830	8,740	7,961	0	0	141	275	944		3.4	2%
FRME	1,798	10,738	9,236	0	0	163	295	1,670		5.7	2%
NWBI	1,796	10,505	9,172	0	0	0	79	1,689		21.4	0%
EGBN	1,754	8,388	7,240	0	0	156	315	1,850		5.9	2%
HOPE	1,713	15,339	13,344	0	0	176	455	1,300		2.9	1%
WABC	1,651	5,523	4,830	0	0	75	100	1,651		16.5	1%
PRK	1,629	8,657	7,723	0	0	99	170	1,777		10.4	1%
NBTB	1,609	9,636	8,561	63	0	118	195	1,420	0%	7.3	1%
HTLF	1,560	12,160	10,639	77	0	143	281	918	0%	3.3	1%
BUSE	1,444	9,613	8,409	0	0	102	213	1,024		4.8	1%

Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)



☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019



☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________________ to __________________________



Commission File Number	1-13006

PARK NATIONAL CORPORATION

(Exact name of registrant as specified in its charter)



Ohio		31-1179518
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)



50 North Third Street,	P.O. Box 3500	Newark,	Ohio	43058-3500
(Address of principal executive offices) (Zip Code)



(740)	349-8451
(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common shares, without par value	PRK	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 16,346,446 Common Shares, no par value per share, outstanding at November 1, 2019.

PARK NATIONAL CORPORATION

CONTENTS



	Page
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Condensed Balance Sheets as of September 30, 2019 and December 31, 2018 (unaudited)	4

Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2019 and 2018 (unaudited)	6

Consolidated Condensed Statements of Comprehensive Income for the three and nine months ended September 30, 2019 and 2018 (unaudited)	8

Consolidated Condensed Statements of Changes in Shareholders’ Equity for the three and nine months ended September 30, 2019 and 2018 (unaudited)	9

Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2019 and 2018 (unaudited)	11

Notes to Unaudited Consolidated Condensed Financial Statements	13

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	66

Item 3. Quantitative and Qualitative Disclosures About Market Risk	93

Item 4. Controls and Procedures	93

PART II. OTHER INFORMATION	94

Item 1. Legal Proceedings	94

Item 1A. Risk Factors	94

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	94

Item 3. Defaults Upon Senior Securities	95

Item 4. Mine Safety Disclosures	95

Item 5. Other Information	95

Item 6. Exhibits	95

SIGNATURES	98

Glossary of Abbreviations and Acronyms

Park has identified the following list of abbreviations and acronyms that are used in the Notes to Unaudited Consolidated Condensed Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations.



AFS	Available-for-sale	NAV	Net asset value
ALLL	Allowance for loan losses	OCI	Other comprehensive income
Allowance	Allowance for loan losses	OREO	Other real estate owned
AOCI	Accumulated other comprehensive income	Park	Park National Corporation and its subsidiaries
ASU	Accounting standards update	PBRSUs	Performance-based restricted stock units
CABF	CAB Financial Corporation and its subsidiaries	PCI	Purchase credit impaired
Carolina Alliance	CAB Financial Corporation and its subsidiaries	PNB	The Park National Bank
CECL	Current expected credit loss	ROU	Right-of-use
FASB	Financial Accounting Standards Board	SARs	Stock appreciation rights
FHLB	Federal Home Loan Bank	SEPH	SE Property Holdings, LLC
FRB	Federal Reserve Bank	TBRSUs	Time-based restricted stock units
GFSC	Guardian Financial Services Company	TDRs	Troubled debt restructurings
HTM	Held-to-maturity	U.S. GAAP	United States Generally Accepted Accounting Principles
IRLC	Interest rate lock commitment	U.S.	United States
MSRs	Mortgage servicing rights

Table of Contents

PARK NATIONAL CORPORATION AND SUBSIDARIES

Consolidated Condensed Balance Sheets (Unaudited)

(in thousands, except share and per share data)



	September 30, 2019			December 31, 2018
Assets:
Cash and due from banks	$	190,353		$	141,890
Money market instruments	182,373			25,324
Cash and cash equivalents	372,726			167,214
Investment securities:
Debt securities available-for-sale, at fair value (amortized cost of $1,237,990 and $1,028,883 at September 30, 2019 and December 31, 2018, respectively)	1,260,286			1,003,421
Debt securities held-to-maturity, at amortized cost (fair value of $351,422 at December 31, 2018)	—			351,808
Other investment securities	68,644			72,916
Total investment securities	1,328,930			1,428,145

Loans	6,403,647			5,692,132
Allowance for loan losses	(55,853		)	(51,512		)
Net loans	6,347,794			5,640,620
Bank owned life insurance	208,594			188,417
Prepaid assets	99,939			94,079
Goodwill	157,999			112,739
Other intangible assets	15,490			6,971
Premises and equipment, net	72,779			59,771
Affordable housing tax credit investments	54,909			50,347
Other real estate owned	3,779			4,303
Accrued interest receivable	24,721			22,974
Operating lease right-of-use asset	14,412			—
Mortgage loan servicing rights	9,960			10,178
Other	11,578			18,550
Total assets	$	8,723,610		$	7,804,308

Table of Contents

PARK NATIONAL CORPORATION AND SUBSIDARIES

Consolidated Condensed Balance Sheets (Unaudited) (Continued)

(in thousands, except share and per share data)



	September 30, 2019			December 31, 2018
Liabilities and Shareholders' Equity:
Deposits:
Noninterest bearing	$	1,941,694		$	1,804,881
Interest bearing	5,226,565			4,455,979
Total deposits	7,168,259			6,260,860
Short-term borrowings	185,838			221,966
Long-term debt	297,500			400,000
Subordinated notes	15,000			15,000
Unfunded commitments in affordable housing tax credit investments	28,439			22,282
Operating lease liability	15,191			—
Accrued interest payable	3,254			2,625
Other	53,989			49,069
Total liabilities	$	7,767,470		$	6,971,802

Shareholders' equity:
Preferred shares (200,000 shares authorized; 0 shares issued)	$	—		$	—
Common shares (No par value; 20,000,000 shares authorized; 17,623,208 shares issued at September 30, 2019 and 16,586,165 shares issued at December 31, 2018)	458,142			358,598
Retained earnings	639,594			614,069
Treasury shares (1,290,257 shares at September 30, 2019 and 887,987 shares at December 31, 2018)	(128,982		)	(90,373		)
Accumulated other comprehensive loss, net of taxes	(12,614		)	(49,788		)
Total shareholders' equity	956,140			832,506
Total liabilities and shareholders’ equity	$	8,723,610		$	7,804,308

SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

Table of Contents

PARK NATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Income (Unaudited)

(in thousands, except share and per share data)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Interest and dividend income:

Interest and fees on loans	$	84,213		$	69,905		$	238,687		$	198,803

Interest and dividends on:
Obligations of U.S. Government, its agencies and other securities - taxable	6,326			7,691			20,240			22,204
Obligations of states and political subdivisions - tax-exempt	2,225			2,205			6,750			6,557
Other interest income	1,825			428			2,994			1,070
Total interest and dividend income	94,589			80,229			268,671			228,634

Interest expense:

Interest on deposits:
Demand and savings deposits	9,649			6,412			25,553			13,809
Time deposits	4,694			3,328			12,828			8,765

Interest on borrowings:
Short-term borrowings	478			288			1,977			1,283
Long-term debt	2,667			2,525			7,585			7,509

Total interest expense	17,488			12,553			47,943			31,366

Net interest income	77,101			67,676			220,728			197,268

Provision for loan losses	1,967			2,940			6,384			4,586
Net interest income after provision for loan losses	75,134			64,736			214,344			192,682

Other income:
Income from fiduciary activities	6,842			6,418			20,500			19,479
Service charges on deposit accounts	2,864			2,861			8,078			8,609
Other service income	4,260			3,246			11,118			10,890
Debit card fee income	5,313			4,352			14,909			12,736
Bank owned life insurance income	1,107			2,585			3,399			4,625
ATM fees	482			500			1,382			1,534
OREO valuation adjustments	(41		)	(77		)	(123		)	(398		)
(Loss) gain on sale of OREO, net	(53		)	(81		)	(224		)	4,093
Net gain (loss) on the sale of investment securities	186			—			(421		)	(2,271		)
Gain on equity securities, net	3,335			89			5,309			4,633
Other components of net periodic pension benefit income	1,183			1,705			3,549			5,115
Miscellaneous	2,658			2,466			5,493			5,164
Total other income	28,136			24,064			72,969			74,209

Table of Contents

PARK NATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Income (Unaudited) (Continued)

(in thousands, except share and per share data)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Other expense:
Salaries	$	30,713	$	27,229	$	88,611	$	76,652
Employee benefits	10,389		7,653		27,833		22,312
Occupancy expense	3,226		2,976		9,460		8,482
Furniture and equipment expense	4,177		3,807		12,713		11,969
Data processing fees	2,935		2,580		7,973		6,255

EX-31.1	prk-ex311x20190930x10q.htm
EX-31.2	prk-ex312x20190930x10q.htm
EX-32.1	prk-ex321x20190930x10q.htm
EX-32.2	prk-ex322x20190930x10q.htm