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Park National Corporation reports 2024 results

1. Park National's net income rose 57.7% in Q4 2024, indicating strong growth. 2. Declared a quarterly cash dividend of $1.07 per share, enhancing shareholder returns. 3. Total loans increased by 4.6%, showing strong lending activity for full year 2024. 4. Net income for FY 2024 reached $151.4 million, a 19.5% increase YoY. 5. Return on assets improved to 1.54%, reflecting operational efficiency.

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NYSE: PRK
NEWARK, Ohio, Jan. 27, 2025 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the fourth quarter and full year of 2024. Park's board of directors declared a quarterly cash dividend of $1.07 per common share, payable on March 10, 2025, to common shareholders of record as of February 14, 2025. “Our consistent and measured growth stems from our team’s absolute focus on meeting customer needs to produce meaningful results,” said Park Chairman and Chief Executive Officer David Trautman. “Helping customers flourish remains our primary goal.” Park’s net income for the fourth quarter of 2024 was $38.6 million, a 57.7 percent increase from $24.5 million for the fourth quarter of 2023. Fourth quarter 2024 net income per diluted common share was $2.37, compared to $1.51 for the fourth quarter of 2023. Park's net income for the full year of 2024 was $151.4 million, a 19.5 percent increase from $126.7 million for the full year of 2023. Net income per diluted common share for the full year of 2024 was $9.32 compared to $7.80 for the full year of 2023. Park’s total loans increased 4.6 percent during 2024. Park's total deposits increased 1.3 percent during 2024, with an increase of 2.7 percent including off balance sheet deposits. The combination of solid loan growth and steady deposits contributed to Park’s success in 2024. “As we enter the new year, we look forward to the opportunity to deepen relationships with our customers, communities and all stakeholders,” said Park President Matthew Miller. “Our bankers are dedicated to helping all those we serve achieve their financial goals and thrive in 2025.” Headquartered in Newark, Ohio, Park National Corporation has $9.8 billion in total assets (as of December 31, 2024). Park's banking operations are conducted through its subsidiary The Park National Bank. Other Park subsidiaries are Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC. Complete financial tables are listed below. Category: Earnings SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Park cautions that any forward-looking statements contained in this news release 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, including those described in Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as updated by our filings with the SEC. 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: (1) Park's ability to execute our business plan successfully and within the expected timeframe; (2) adverse changes in future economic and financial market conditions; (3) adverse changes in real estate values and liquidity in our primary market areas; (4) the financial health of our commercial borrowers; (5) adverse changes in federal, state and local governmental law and policy, including the regulatory landscape, capital markets, elevated government debt, potential changes in tax legislation, government shutdown, infrastructure spending and social programs; (6) changes in consumer spending, borrowing and saving habits; (7) our litigation and regulatory compliance exposure; (8) increased credit risk and higher credit losses resulting from loan concentrations; (9) competitive pressures among financial services organizations; (10) changes in accounting policies and practices as may be adopted by regulatory agencies; (11) Park's assumptions and estimates used in applying critical accounting policies and modeling which may prove unreliable, inaccurate or not predictive of actual results; (12) Park's ability to anticipate and respond to technological changes and Park's reliance on, and the potential failure of, a number of third-party vendors to perform as expected; (13) failures in or breaches of Park's operational or security systems or infrastructure, or those of our third-party vendors and other service providers; (14) negative impacts on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government-backed debt, as well as issues surrounding the levels of U.S., European and Asian government debt and concerns regarding the growth rates and financial stability of certain sovereign governments, supranationals and financial institutions in Europe and Asia; (15) effects of a fall in stock market prices on Park's asset and wealth management businesses; (16) continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; (17) the impact on Park's business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties; (18) the impact of widespread natural and other disasters, pandemics, dislocations, regional or national protests and civil unrest (including any resulting branch closures or damages), military or terrorist activities or international hostilities on the economy and financial markets generally and on us or our counterparties specifically; (19) the potential further deterioration of the U.S. economy due to financial, political, or other shocks; (20) the effect of healthcare laws in the U.S. and potential changes for such laws that may increase our healthcare and other costs and negatively impact our operations and financial results; (21) the impact of larger or similar-sized financial institutions encountering problems that may adversely affect the banking industry; and (22) other risk factors relating to the financial services industry. 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.   PARK NATIONAL CORPORATION Financial Highlights As of or for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023            2024   2024   2023   Percent change vs. (in thousands, except common share and per common share data and ratios)4th QTR3rd QTR4th QTR 3Q '24 4Q '23 INCOME STATEMENT:        Net interest income$103,445  $101,114  $95,074   2.3 %8.8 %Provision for credit losses 3,935   5,315   1,809   (26.0)%117.5 %Other income 31,064   36,530   15,519   (15.0)%100.2 %Other expense 83,241   85,681   79,043   (2.8)%5.3 %Income before income taxes$47,333  $46,648  $29,741   1.5 %59.2 %Income taxes 8,703   8,431   5,241   3.2 %66.1 %Net income$38,630  $38,217  $24,500   1.1 %57.7 %         MARKET DATA:        Earnings per common share - basic (a)$2.39  $2.37  $1.52   0.8 %57.2 %Earnings per common share - diluted (a) 2.37   2.35   1.51   0.9 %57.0 %Quarterly cash dividend declared per common share 1.06   1.06   1.05   — %1.0 %Special cash dividend declared per common share 0.50   —   —   N.M. N.M. Book value per common share at period end 76.98   76.74   71.06   0.3 %8.3 %Market price per common share at period end 171.43   167.98   132.86   2.1 %29.0 %Market capitalization at period end 2,770,134   2,713,152   2,141,235   2.1 %29.4 %         Weighted average common shares - basic (b) 16,156,827   16,151,640   16,113,215   — %0.3 %Weighted average common shares - diluted (b) 16,283,701   16,264,393   16,216,562   0.1 %0.4 %Common shares outstanding at period end 16,158,982   16,151,640   16,116,479   — %0.3 %         PERFORMANCE RATIOS: (annualized)        Return on average assets (a)(b) 1.54 % 1.53 % 0.98 % 0.7 %57.1 %Return on average shareholders' equity (a)(b) 12.32 % 12.56 % 8.81 % (1.9)%39.8 %Yield on loans 6.21 % 6.24 % 5.84 % (0.5)%6.3 %Yield on investment securities 3.46 % 3.74 % 3.88 % (7.5)%(10.8)%Yield on money market instruments 4.75 % 5.38 % 5.30 % (11.7)%(10.4)%Yield on interest earning assets 5.82 % 5.88 % 5.48 % (1.0)%6.2 %Cost of interest bearing deposits 1.90 % 2.06 % 1.84 % (7.8)%3.3 %Cost of borrowings 3.86 % 3.97 % 4.42 % (2.8)%(12.7)%Cost of paying interest bearing liabilities 1.99 % 2.15 % 2.01 % (7.4)%(1.0)%Net interest margin (g) 4.51 % 4.45 % 4.17 % 1.3 %8.2 %Efficiency ratio (g) 61.60 % 61.98 % 70.93 % (0.6)%(13.2)%         OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:        Tangible book value per common share (d)$66.89  $66.62  $60.87   0.4 %9.9 %Average interest earning assets 9,176,540   9,100,594   9,120,407   0.8 %0.6 %Pre-tax, pre-provision net income (j) 51,268   51,963   31,550   (1.3)%62.5 %         Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.                    PARK NATIONAL CORPORATION Financial Highlights (continued) As of or for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023               Percent change vs. (in thousands, except ratios)December 31, 2024September 30, 2024December 31, 2023 3Q '24 4Q '23 BALANCE SHEET:        Investment securities$1,100,861  $1,233,297  $1,429,144   (10.7)%(23.0)%Loans 7,817,128   7,730,984   7,476,221   1.1 %4.6 %Allowance for credit losses 87,966   87,237   83,745   0.8 %5.0 %Goodwill and other intangible assets 163,032   163,320   164,247   (0.2)%(0.7)%Other real estate owned (OREO) 938   1,119   983   (16.2)%(4.6)%Total assets 9,805,350   9,903,049   9,836,453   (1.0)%(0.3)%Total deposits 8,143,526   8,214,671   8,042,566   (0.9)%1.3 %Borrowings 280,083   306,964   517,329   (8.8)%(45.9)%Total shareholders' equity 1,243,848   1,239,413   1,145,293   0.4 %8.6 %Tangible equity (d) 1,080,816   1,076,093   981,046   0.4 %10.2 %Total nonperforming loans 69,932   71,541   61,118   (2.2)%14.4 %Total nonperforming assets 70,870   72,660   62,101   (2.5)%14.1 %         ASSET QUALITY RATIOS:        Loans as a % of period end total assets 79.72 % 78.07 % 76.01 % 2.1 %4.9 %Total nonperforming loans as a % of period end loans 0.89 % 0.93 % 0.82 % (4.3)%8.5 %Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets 0.91 % 0.94 % 0.83 % (3.2)%9.6 %Allowance for credit losses as a % of period end loans 1.13 % 1.13 % 1.12 % — %0.9 %Net loan charge-offs$3,206  $4,653  $2,666   (31.1)%20.3 %Annualized net loan charge-offs as a % of average loans (b) 0.16 % 0.24 % 0.14 % (33.3)%14.3 %         CAPITAL & LIQUIDITY:        Total shareholders' equity / Period end total assets 12.69 % 12.52 % 11.64 % 1.4 %9.0 %Tangible equity (d) / Tangible assets (f) 11.21 % 11.05 % 10.14 % 1.4 %10.6 %Average shareholders' equity / Average assets (b) 12.47 % 12.20 % 11.16 % 2.2 %11.7 %Average shareholders' equity / Average loans (b) 16.08 % 15.76 % 14.94 % 2.0 %7.6 %Average loans / Average deposits (b) 93.00 % 92.69 % 89.48 % 0.3 %3.9 %         Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.              PARK NATIONAL CORPORATION Financial Highlights Year months ended December 31, 2024 and December 31, 2023          (in thousands, except common share and per common share data and ratios) 2024   2023   Percent change vs '23 INCOME STATEMENT:     Net interest income$398,019  $373,113   6.7 %Provision for credit losses 14,543   2,904   400.8 %Other income 122,588   92,634   32.3 %Other expense 321,339   309,239   3.9 %Income before income taxes$184,725  $153,604   20.3 %Income taxes 33,305   26,870   23.9 %Net income$151,420  $126,734   19.5 %      MARKET DATA:     Earnings per common share - basic (a)$9.38  $7.84   19.6 %Earnings per common share - diluted (a) 9.32   7.80   19.5 %Quarterly cash dividend declared per common share 4.24   4.20   1.0 %Special cash dividend declared per common share 0.50   —   N.M.        Weighted average common shares - basic (b) 16,143,708   16,163,500   (0.1)%Weighted average common shares - diluted (b) 16,244,797   16,250,019   — %      PERFORMANCE RATIOS:     Return on average assets (a)(b) 1.53 % 1.27 % 20.5 %Return on average shareholders' equity (a)(b) 12.65 % 11.55 % 9.5 %Yield on loans 6.14 % 5.55 % 10.6 %Yield on investment securities 3.74 % 3.73 % 0.3 %Yield on money market instruments 5.16 % 5.00 % 3.2 %Yield on interest earning assets 5.78 % 5.18 % 11.6 %Cost of interest bearing deposits 1.97 % 1.52 % 29.6 %Cost of borrowings 4.05 % 3.79 % 6.9 %Cost of paying interest bearing liabilities 2.08 % 1.67 % 24.6 %Net interest margin (g) 4.41 % 4.11 % 7.3 %Efficiency ratio (g) 61.44 % 65.87 % (6.7)%      ASSET QUALITY RATIOS:     Net loan charge-offs$10,322  $4,921   109.8 %Net loan charge-offs as a % of average loans (b) 0.14 % 0.07 % 100.0 %      CAPITAL & LIQUIDITY     Average shareholders' equity / Average Assets (b) 12.09 % 11.02 % 9.7 %Average shareholders' equity / Average loans (b) 15.69 % 15.19 % 3.3 %Average loans / Average deposits (b) 92.34 % 86.39 % 6.9 %      OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:     Average interest earning assets 9,085,850   9,171,721   (0.9)%Pre-tax, pre-provision net income (j) 199,268   156,508   27.3 %      Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.     PARK NATIONAL CORPORATIONConsolidated Statements of Income           Three Months Ended Twelve Month Ended  December 31 December 31(in thousands, except share and per share data)  2024  2023  2024  2023         Interest income:        Interest and fees on loans $120,870 $108,495 $467,602 $399,795Interest on debt securities:        Taxable  8,641  13,055  41,718  52,786Tax-exempt  1,351  2,248  5,524  10,966Other interest income  2,751  1,408  8,121  8,123 Total interest income  133,613  125,206  522,965  471,670         Interest expense:        Interest on deposits:        Demand and savings deposits  19,802  19,467  82,789  71,776Time deposits  7,658  6,267  29,594  12,677Interest on borrowings  2,708  4,398  12,563  14,104 Total interest expense  30,168  30,132  124,946  98,557          Net interest income  103,445  95,074  398,019  373,113         Provision for credit losses  3,935  1,809  14,543  2,904          Net interest income after provision for credit losses  99,510  93,265  383,476  370,209         Other income  31,064  15,519  122,588  92,634         Other expense  83,241  79,043  321,339  309,239          Income before income taxes  47,333  29,741  184,725  153,604         Income taxes  8,703  5,241  33,305  26,870          Net income $38,630 $24,500 $151,420 $126,734         Per common share:         Net income - basic $2.39 $1.52 $9.38 $7.84 Net income - diluted $2.37 $1.51 $9.32 $7.80          Weighted average common shares - basic  16,156,827  16,113,215  16,143,708  16,163,500 Weighted average common shares - diluted  16,283,701  16,216,562  16,244,797  16,250,019          Cash dividends declared:        Quarterly dividend $1.06 $1.05 $4.24 $4.20Special dividend $0.50 $— $0.50 $—                PARK NATIONAL CORPORATION  Consolidated Balance Sheets      (in thousands, except share data)December 31, 2024 December 31, 2023      Assets         Cash and due from banks$122,363  $160,477  Money market instruments 38,203   57,791  Investment securities 1,100,861   1,429,144  Loans 7,817,128   7,476,221  Allowance for credit losses (87,966)  (83,745) Loans, net 7,729,162   7,392,476  Bank premises and equipment, net 69,522   74,211  Goodwill and other intangible assets 163,032   164,247  Other real estate owned 938   983  Other assets 581,269   557,124  Total assets$9,805,350  $9,836,453       Liabilities and Shareholders' Equity         Deposits:    Noninterest bearing$2,612,708  $2,628,234  Interest bearing 5,530,818   5,414,332  Total deposits 8,143,526   8,042,566  Borrowings 280,083   517,329  Other liabilities 137,893   131,265  Total liabilities$8,561,502  $8,691,160            Shareholders' Equity:    Preferred shares (200,000 shares authorized; no shares outstanding at December 31, 2024 and December 31, 2023)$—  $—  Common shares (No par value; 20,000,000 shares authorized; 17,623,104 shares issued at December 31, 2024 and December 31, 2023) 463,706   463,280  Total shareholders' equity$1,243,848  $1,145,293  Total liabilities and shareholders' equity$9,805,350  $9,836,453    PARK NATIONAL CORPORATION Consolidated Average Balance Sheets       Three Months Ended Twelve Months Ended December 31, December 31,(in thousands) 2024  2023   2024  2023       Assets           Cash and due from banks$122,949 $134,593  $129,070 $147,414 Money market instruments 230,591  105,425   157,292  162,544 Investment securities  1,167,467  1,544,942   1,265,680  1,716,037 Loans 7,757,229  7,387,512   7,627,419  7,222,479 Allowance for credit losses (87,608) (85,493)  (85,930) (87,002)Loans, net 7,669,621  7,302,019   7,541,489  7,135,477 Bank premises and equipment, net 70,615  76,718   72,689  79,443 Goodwill and other intangible assets 163,221  164,466   163,669  164,960 Other real estate owned 1,079  1,342   1,192  1,654 Other assets 582,785  560,683   570,183  550,025 Total assets$10,008,328 $9,890,188  $9,901,264 $9,957,554             Liabilities and Shareholders' Equity           Deposits:     Noninterest bearing$2,593,128 $2,694,148  $2,564,009 $2,814,259 Interest bearing 5,747,671  5,561,845   5,696,185  5,546,015 Total deposits 8,340,799  8,255,993   8,260,194  8,360,274 Borrowings 279,149  394,423   309,996  371,955 Other liabilities 140,700  136,046   133,954  128,182 Total liabilities$8,760,648 $8,786,462  $8,704,144 $8,860,411       Shareholders' Equity:     Preferred shares$— $—  $— $— Common shares 462,146  461,864   461,433  460,973 Accumulated other comprehensive loss, net of taxes (41,229) (108,219)  (60,619) (98,154)Retained earnings 978,267  906,091   949,160  884,711 Treasury shares (151,504) (156,010)  (152,854) (150,387)Total shareholders' equity$1,247,680 $1,103,726  $1,197,120 $1,097,143 Total liabilities and shareholders' equity$10,008,328 $9,890,188  $9,901,264 $9,957,554         PARK NATIONAL CORPORATION Consolidated Statements of Income - Linked Quarters       20242024202420242023(in thousands, except per share data)4th QTR3rd QTR2nd QTR1st QTR4th QTR      Interest income:     Interest and fees on loans $120,870$120,203$115,318$111,211$108,495Interest on debt securities:     Taxable 8,641 10,228 10,950 11,899 13,055Tax-exempt 1,351 1,381 1,382 1,410 2,248Other interest income 2,751 1,996 1,254 2,120 1,408Total interest income 133,613 133,808 128,904 126,640 125,206      Interest expense:     Interest on deposits:     Demand and savings deposits 19,802 22,762 20,370 19,855 19,467Time deposits 7,658 7,073 7,525 7,338 6,267Interest on borrowings 2,708 2,859 3,172 3,824 4,398Total interest expense 30,168 32,694 31,067 31,017 30,132      Net interest income 103,445 101,114 97,837 95,623 95,074      Provision for credit losses 3,935 5,315 3,113 2,180 1,809      Net interest income after provision for credit losses 99,510 95,799 94,724 93,443 93,265      Other income 31,064 36,530 28,794 26,200 15,519      Other expense 83,241 85,681 75,189 77,228 79,043      Income before income taxes 47,333 46,648 48,329 42,415 29,741      Income taxes 8,703 8,431 8,960 7,211 5,241      Net income $38,630$38,217$39,369$35,204$24,500      Per common share:     Net income - basic$2.39$2.37$2.44$2.18$1.52Net income - diluted$2.37$2.35$2.42$2.17$1.51             PARK NATIONAL CORPORATION Detail of other income and other expense - Linked Quarters        2024  2024 2024 2024  2023 (in thousands)4th QTR3rd QTR2nd QTR1st QTR4th QTR      Other income:     Income from fiduciary activities$11,122 $10,615$10,728$10,024 $8,943 Service charges on deposit accounts 2,319  2,362 2,214 2,106  2,054 Other service income 3,277  3,036 2,906 2,524  2,349 Debit card fee income 6,511  6,539 6,580 6,243  6,583 Bank owned life insurance income 1,519  2,057 1,565 2,629  1,373 ATM fees 415  471 458 496  517 Pension settlement gain 365  5,783 — —  — Loss on sale of debt securities, net (128) — — (398) (7,875)Gain (loss) on equity securities, net 1,852  1,557 358 (687) 353 Other components of net periodic benefit income 2,651  2,204 2,204 2,204  1,893 Miscellaneous 1,161  1,906 1,781 1,059  (671)Total other income$31,064 $36,530$28,794$26,200 $15,519       Other expense:     Salaries$37,254 $38,370$35,954$35,733 $36,192 Employee benefits 10,129  10,162 9,873 11,560  10,088 Occupancy expense 2,929  3,731 2,975 3,181  3,344 Furniture and equipment expense 2,375  2,571 2,454 2,583  2,824 Data processing fees 10,450  11,764 9,542 8,808  9,605 Professional fees and services 10,465  7,842 6,022 6,817  7,015 Marketing 1,949  1,464 1,164 1,741  1,716 Insurance 1,600  1,640 1,777 1,718  1,708 Communication 1,104  955 1,002 1,036  993 State tax expense 1,145  1,116 1,129 1,110  1,158 Amortization of intangible assets 288  287 320 320  334 Foundation contributions —  2,000 — —  1,000 Miscellaneous 3,553  3,779 2,977 2,621  3,066 Total other expense$83,241 $85,681$75,189$77,228 $79,043         PARK NATIONAL CORPORATION Asset Quality Information         Year ended December 31,(in thousands, except ratios)  2024   2023   2022   2021   2020         Allowance for credit losses:      Allowance for credit losses, beginning of period $83,745  $85,379  $83,197  $85,675  $56,679  Cumulative change in accounting principle; adoption of ASU 2022-02 in 2023 and ASU 2016-13 in 2021  —   383   —   6,090   —  Charge-offs  18,334   10,863   9,133   5,093   10,304  Recoveries  8,012   5,942   6,758   8,441   27,246  Net charge-offs (recoveries)  10,322   4,921   2,375   (3,348)  (16,942) Provision for (recovery of) credit losses  14,543   2,904   4,557   (11,916)  12,054  Allowance for credit losses, end of period $87,966  $83,745  $85,379  $83,197  $85,675         General reserve trends:      Allowance for credit losses, end of period $87,966  $83,745  $85,379  $83,197  $85,675  Allowance on accruing purchased credit deteriorated ("PCD") loans (purchased credit impaired ("PCI") loans for years 2020 and prior)  —   —   —   —   167  Allowance on purchased loans excluded from collectively evaluated loans (for years 2020 and prior)  N.A.   N.A.   N.A.   N.A.   678  Specific reserves on individually evaluated loans  1,299   4,983   3,566   1,616   5,434  General reserves on collectively evaluated loans $86,667  $78,762  $81,813  $81,581  $79,396         Total loans $7,817,128  $7,476,221  $7,141,891  $6,871,122  $7,177,785  Accruing PCD loans (PCI loans for years 2020 and prior)  2,174   2,835   4,653   7,149   11,153  Purchased loans excluded from collectively evaluated loans (for years 2020 and prior)  N.A.   N.A.   N.A.   N.A.   360,056  Individually evaluated loans (k)  53,149   45,215   78,341   74,502   108,407  Collectively evaluated loans $7,761,805  $7,428,171  $7,058,897  $6,789,471  $6,698,169         Asset Quality Ratios:      Net charge-offs (recoveries) as a % of average loans  0.14 % 0.07 % 0.03 % (0.05)% (0.24)%Allowance for credit losses as a % of period end loans  1.13 % 1.12 % 1.20 % 1.21 % 1.19 %General reserve as a % of collectively evaluated loans  1.12 % 1.06 % 1.16 % 1.20 % 1.19 %       Nonperforming assets:      Nonaccrual loans $68,178  $60,259  $79,696  $72,722  $117,368  Accruing troubled debt restructurings (for years 2022 and prior) (k)  N.A.   N.A.   20,134   28,323   20,788  Loans past due 90 days or more  1,754   859   1,281   1,607   1,458  Total nonperforming loans $69,932  $61,118  $101,111  $102,652  $139,614  Other real estate owned  938   983   1,354   775   1,431  Other nonperforming assets  —   —   —   2,750   3,164  Total nonperforming assets $70,870  $62,101  $102,465  $106,177  $144,209  Percentage of nonaccrual loans to period end loans  0.87 % 0.81 % 1.12 % 1.06 % 1.64 %Percentage of nonperforming loans to period end loans  0.89 % 0.82 % 1.42 % 1.49 % 1.95 %Percentage of nonperforming assets to period end loans  0.91 % 0.83 % 1.43 % 1.55 % 2.01 %Percentage of nonperforming assets to period end total assets  0.72 % 0.63 % 1.04 % 1.11 % 1.55 %       Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.         PARK NATIONAL CORPORATION Asset Quality Information (continued)         Year ended December 31,(in thousands, except ratios)  2024 2023 2022 2021 2020       New nonaccrual loan information:      Nonaccrual loans, beginning of period $60,259$79,696$72,722$117,368$90,080New nonaccrual loans  65,535 48,280 64,918 38,478 103,386Resolved nonaccrual loans  57,616 67,717 57,944 83,124 76,098Nonaccrual loans, end of period $68,178$60,259$79,696$72,722$117,368       Individually evaluated commercial loan portfolio information (period end): (k)Unpaid principal balance $58,158$47,564$80,116$75,126$109,062Prior charge-offs  5,009 2,349 1,775 624 655Remaining principal balance  53,149 45,215 78,341 74,502 108,407Specific reserves  1,299 4,983 3,566 1,616 5,434Book value, after specific reserves $51,850$40,232$74,775$72,886$102,973       Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.      PARK NATIONAL CORPORATION   Financial Reconciliations      NON-GAAP RECONCILIATIONS       THREE MONTHS ENDED TWELVE MONTHS ENDED(in thousands, except share and per share data)December 31, 2024September 30, 2024December 31, 2023 December 31, 2024December 31, 2023Net interest income$103,445  $101,114  $95,074   $398,019  $373,113  less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions 250   281   124    1,154   633  less interest income on former Vision Bank relationships 38   9   35    54   631  Net interest income - adjusted$103,157  $100,824  $94,915   $396,811  $371,849         Provision for credit losses$3,935  $5,315  $1,809   $14,543  $2,904  less recoveries on former Vision Bank relationships —   (234)  —    (1,304)  (788) Provision for credit losses - adjusted$3,935  $5,549  $1,809   $15,847  $3,692         Other income$31,064  $36,530  $15,519   $122,588  $92,634  less loss on sale of debt securities, net (128)  —   (7,875)   (526)  (7,875) less pension settlement gain 365   5,783   —    6,148   —  less impact of strategic initiatives 117   —   (1,038)   775   (1,038) less Vision related OREO valuation adjustments, net —   1   (370)   115   (370) less other service income related to former Vision Bank relationships 299   —   40    312   175  Other income - adjusted$30,411  $30,746  $24,762   $115,764  $101,742         Other expense$83,241  $85,681  $79,043   $321,339  $309,239  less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions 288   287   334    1,215   1,323  less Foundation contribution —   2,000   1,000    2,000   1,000  less special incentive —   1,700   —    1,700   —  less building demolition costs 44   349   —    458   —  less direct expenses related to collection of payments on former Vision Bank loan relationships 215   —   —    215   100  Other expense - adjusted$82,694  $81,345  $77,709   $315,751  $306,816         Tax effect of adjustments to net income identified above (i)$(83) $(414) $2,188   $(787) $1,991         Net income - reported$38,630  $38,217  $24,500   $151,420  $126,734  Net income - adjusted (h)$38,319  $36,659  $32,730   $148,459  $134,222         Diluted earnings per common share$2.37  $2.35  $1.51   $9.32  $7.80  Diluted earnings per common share, adjusted (h)$2.35  $2.25  $2.02   $9.14  $8.26         Annualized return on average assets (a)(b) 1.54 % 1.53 % 0.98 %  1.53 % 1.27 %Annualized return on average assets, adjusted (a)(b)(h) 1.52 % 1.47 % 1.31 %  1.50 % 1.35 %       Annualized return on average tangible assets (a)(b)(e) 1.56 % 1.56 % 1.00 %  1.56 % 1.29 %Annualized return on average tangible assets, adjusted (a)(b)(e)(h) 1.55 % 1.49 % 1.34 %  1.52 % 1.37 %       Annualized return on average shareholders' equity (a)(b) 12.32 % 12.56 % 8.81 %  12.65 % 11.55 %Annualized return on average shareholders' equity, adjusted (a)(b)(h) 12.22 % 12.05 % 11.76 %  12.40 % 12.23 %       Annualized return on average tangible equity (a)(b)(c) 14.17 % 14.52 % 10.35 %  14.65 % 13.60 %Annualized return on average tangible equity, adjusted (a)(b)(c)(h) 14.06 % 13.93 % 13.83 %  14.37 % 14.40 %       Efficiency ratio (g) 61.60 % 61.98 % 70.93 %  61.44 % 65.87 %Efficiency ratio, adjusted (g)(h) 61.63 % 61.55 % 64.48 %  61.31 % 64.28 %       Annualized net interest margin (g) 4.51 % 4.45 % 4.17 %  4.41 % 4.11 %Annualized net interest margin, adjusted (g)(h) 4.50 % 4.43 % 4.17 %  4.39 % 4.09 %Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.          PARK NATIONAL CORPORATION   Financial Reconciliations (continued)             (a) Reported measure uses net income(b) Averages are for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023 and the twelve months ended December 31, 2024 and December 31, 2023, as appropriate(c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period.       RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY:    THREE MONTHS ENDED TWELVE MONTHS ENDED December 31, 2024September 30, 2024December 31, 2023 December 31, 2024December 31, 2023AVERAGE SHAREHOLDERS' EQUITY$1,247,680$1,210,565$1,103,726 $1,197,120$1,097,143Less: Average goodwill and other intangible assets 163,221 163,509 164,466  163,669 164,960AVERAGE TANGIBLE EQUITY$1,084,459$1,047,056$939,260 $1,033,451$932,183       (d) Tangible equity divided by common shares outstanding at period end. Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at the end of the period.       RECONCILIATION OF TOTAL SHAREHOLDERS' EQUITY TO TANGIBLE EQUITY: December 31, 2024September 30, 2024December 31, 2023   TOTAL SHAREHOLDERS' EQUITY$1,243,848$1,239,413$1,145,293   Less: Goodwill and other intangible assets 163,032 163,320 164,247   TANGIBLE EQUITY$1,080,816$1,076,093$981,046          (e) Net income for each period divided by average tangible assets during the period. Average tangible assets equal average assets less average goodwill and other intangible assets, in each case during the applicable period.       RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS    THREE MONTHS ENDED TWELVE MONTHS ENDED December 31, 2024September 30, 2024December 31, 2023 December 31, 2024December 31, 2023AVERAGE ASSETS$10,008,328$9,920,633$9,890,188 $9,901,264$9,957,554Less: Average goodwill and other intangible assets 163,221 163,509 164,466  163,669 164,960AVERAGE TANGIBLE ASSETS$9,845,107$9,757,124$9,725,722 $9,737,595$9,792,594       (f) Tangible equity divided by tangible assets. Tangible assets equal total assets less goodwill and other intangible assets, in each case at the end of the period.       RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS: December 31, 2024September 30, 2024December 31, 2023   TOTAL ASSETS$9,805,350$9,903,049$9,836,453   Less: Goodwill and other intangible assets 163,032 163,320 164,247   TANGIBLE ASSETS$9,642,318$9,739,729$9,672,206          (g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period.       RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME THREE MONTHS ENDED TWELVE MONTHS ENDED December 31, 2024September 30, 2024December 31, 2023 December 31, 2024December 31, 2023Interest income$133,613$133,808$125,206 $522,965$471,670Fully taxable equivalent adjustment 617 594 838  2,432 3,726Fully taxable equivalent interest income$134,230$134,402$126,044 $525,397$475,396Interest expense 30,168 32,694 30,132  124,946 98,557Fully taxable equivalent net interest income$104,062$101,708$95,912 $400,451$376,839       (h) Adjustments to net income for each period presented are detailed in the non-GAAP reconciliations of net interest income, provision for credit losses, other income, other expense and tax effect of adjustments to net income.(i) The tax effect of adjustments to net income was calculated assuming a 21% corporate federal income tax rate.(j) Pre-tax, pre-provision ("PTPP") net income is calculated as net income, plus income taxes, plus the provision for credit losses, in each case during the applicable period. PTPP net income is a common industry metric utilized in capital analysis and review. PTPP is used to assess the operating performance of Park while excluding the impact of the provision for credit losses.         RECONCILIATION OF PRE-TAX, PRE-PROVISION NET INCOME THREE MONTHS ENDED TWELVE MONTHS ENDED December 31, 2024September 30, 2024December 31, 2023 December 31, 2024December 31, 2023Net income$38,630$38,217$24,500 $151,420$126,734Plus: Income taxes 8,703 8,431 5,241  33,305 26,870Plus: Provision for credit losses 3,935 5,315 1,809  14,543 2,904Pre-tax, pre-provision net income$51,268$51,963$31,550 $199,268$156,508       (k) Effective January 1, 2023, Park adopted Accounting Standards Update ("ASU") 2022-02. Among other things, this ASU eliminated the concept of troubled debt restructurings ("TDRs"). As a result of the adoption of this ASU and elimination of the concept of TDRs, total nonperforming loans ("NPLs") and total nonperforming assets ("NPAs") each decreased by $20.1 million effective January 1, 2023. Additionally, as a result of the adoption of this ASU, individually evaluated loans decreased by $11.5 million effective January 1, 2023. 

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