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Park National Corporation reports financial results for first quarter 2025

1. Park National reports Q1 2025 net income of $42.2 million, up 19.8%. 2. Quarterly dividend of $1.07 per share is declared for June 2025. 3. Total loans and deposits increased 0.9% and 0.7% respectively in Q1 2025. 4. Park's asset size stands at $9.9 billion as of March 31, 2025. 5. Declining nonperforming loans indicate improved asset quality.

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Why Bullish?

The significant increase in net income and planned dividend support investor confidence. Historical context shows positive earnings can drive stock prices up, as seen in similar cases.

How important is it?

The article reflects a strong earnings performance and regular dividend, key factors impacting investor decisions and stock valuation.

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Immediate dividend declaration and quarterly earnings typically influence stock prices quickly, evidenced by previous Q1 earnings scenarios leading to price changes.

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CFRCUBNPNC
NEWARK, Ohio, April 25, 2025 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the first quarter of 2025. Park's board of directors declared a quarterly cash dividend of $1.07 per common share, payable on June 10, 2025, to common shareholders of record as of May 16, 2025. “Our first quarter performance reflects our commitment to providing consistent financial support and a measure of predictability in dynamic market conditions,” said Park Chairman and CEO David Trautman. “In a world buffeted by extremes, our greatest opportunity to serve more is through continuing to build authentic relationships and showing up as a steady, reliable partner.” Park’s net income for the first quarter of 2025 was $42.2 million, a 19.8 percent increase from $35.2 million for the first quarter of 2024. First quarter 2025 net income per diluted common share was $2.60, compared to $2.17 for the first quarter of 2024. Park’s total loans increased 0.9 percent (3.5 percent annualized) during the first quarter of 2025. Park's reported period end deposits increased 0.7 percent (2.9 percent annualized) during the first quarter of 2025, with an increase of 2.3 percent (9.5 percent annualized), including deposits that Park moved off balance sheet as of March 31, 2025. The combination of solid loan growth and steady deposits continue to contribute to Park's success in 2025. “Our bankers’ ability to serve others well is reflected in our first quarter results,” said Park President Matthew Miller. “We’re deeply grateful for the trust our communities, customers and neighbors place in us every day. We look forward to growing these and new relationships, consistently delivering on our promises and expanding our impact.” Headquartered in Newark, Ohio, Park National Corporation has $9.9 billion in total assets (as of March 31, 2025). 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), Park Investments, Inc. 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, 2024, 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 include, without limitation: (1) the ability to execute our business plan successfully and manage strategic initiatives; (2) the impact of current and future economic and financial market conditions, including unemployment rates, inflation, interest rates, supply-demand imbalances, and geopolitical matters; (3) factors impacting the performance of our loan portfolio, including real estate values, financial health of borrowers, and loan concentrations; (4) the effects of monetary and fiscal policies, including interest rates, money supply, and inflation; (5) changes in federal, state, or local tax laws; (6) the impact of changes in governmental policy and regulatory requirements on our operations; (7) changes in consumer spending, borrowing, and saving habits; (8) changes in the performance and creditworthiness of customers, suppliers, and counterparties; (9) increased credit risk and higher credit losses due to loan concentrations; (10) volatility in mortgage banking income due to interest rates and demand; (11) adequacy of our internal controls and risk management programs; (12) competitive pressures among financial services organizations; (13) uncertainty regarding changes in banking regulations and other regulatory requirements; (14) our ability to meet heightened supervisory requirements and expectations; (15) the impact of changes in accounting policies and practices on our financial condition; (16) the reliability and accuracy of assumptions and estimates used in applying critical accounting estimates; (17) the potential for higher future credit losses due to changes in economic assumptions; (18) the ability to anticipate and respond to technological changes and our reliance on third-party vendors; (19) operational issues related to and capital spending necessitated by the implementation of information technology systems on which we are highly dependent; (20) the ability to secure confidential information and deliver products and services through computer systems and telecommunications networks; (21) the impact of security breaches or failures in operational systems; (22) the impact of geopolitical instability and trade policies on our operations including the imposition of tariffs and retaliatory tariffs; (23) the impact of changes in credit ratings of government debt and financial stability of sovereign governments; (24) the effect of stock market price fluctuations on our asset and wealth management businesses; (25) litigation and regulatory compliance exposure; (26) availability of earnings and excess capital for dividend declarations; (27) the impact of fraud, scams, and schemes on our business; (28) the impact of natural disasters, pandemics, and other emergencies on our operations; (29) potential deterioration of the economy due to financial, political, or other shocks; (30) impact of healthcare laws and potential changes on our costs and operations; (31) the ability to grow deposits and maintain adequate deposit levels, including by mitigating the effect of unexpected deposit outflows on our financial condition; and (32) other risk factors related to the banking 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 March 31, 2025, December 31, 2024 and March 31, 2024                  2025   2024   2024   Percent change vs. (in thousands, except common share and per common share data and ratios)1st QTR4th QTR1st QTR 4Q '24 1Q '24 INCOME STATEMENT:        Net interest income$104,377  $103,445  $95,623   0.9 %9.2 %Provision for credit losses 756   3,935   2,180   (80.8)%(65.3)%Other income 25,746   31,064   26,200   (17.1) %(1.7) %Other expense 78,164   83,241   77,228   (6.1 ) %1.2 %Income before income taxes$51,203  $47,333  $42,415   8.2 %20.7 %Income taxes 9,046   8,703   7,211   3.9 %25.4 %Net income$42,157  $38,630  $35,204   9.1 %19.8 %         MARKET DATA:        Earnings per common share - basic (a)$2.61  $2.39  $2.18   9.2 %19.7 %Earnings per common share - diluted (a) 2.60   2.37   2.17   9.7 %19.8 %Quarterly cash dividend declared per common share 1.07   1.06   1.06   0.9 %0.9 %Special cash dividend declared per common share —   0.50   —   N.M. N.M. Book value per common share at period end 79.00   76.98   71.95   2.6 %9.8 %Market price per common share at period end 151.40   171.43   135.85   (11.7) %11.4 %Market capitalization at period end 2,451,370   2,770,134   2,199,556   (11.5) %11.4 %         Weighted average common shares - basic (b) 16,159,342   16,156,827   16,116,842   — %0.3 %Weighted average common shares - diluted (b) 16,238,701   16,283,701   16,191,065   (0.3) %0.3 %Common shares outstanding at period end 16,191,347   16,158,982   16,149,523   0.2 %0.3 %         PERFORMANCE RATIOS: (annualized)        Return on average assets (a)(b) 1.70 % 1.54 % 1.44 % 10.4 %18.1 %Return on average shareholders' equity (a)(b) 13.46 % 12.32 % 12.23 % 9.3 %10.1 %Yield on loans 6.26 % 6.21 % 5.99 % 0.8 %4.5 %Yield on investment securities 3.25 % 3.46 % 3.90 % (6.1) %(16.7) %Yield on money market instruments 4.46 % 4.75 % 5.48 % (6.1) %(18.6) %Yield on interest earning assets 5.85 % 5.82 % 5.66 % 0.5 %3.4 %Cost of interest bearing deposits 1.76 % 1.90 % 1.94 % (7.4) %(9.3) %Cost of borrowings 3.94 % 3.86 % 4.25 % 2.1 %(7.3) %Cost of paying interest bearing liabilities 1.86 % 1.99 % 2.08 % (6.5) %(10.6) %Net interest margin (g) 4.62 % 4.51 % 4.28 % 2.4 %7.9 %Efficiency ratio (g) 59.79 % 61.60 % 63.07 % (2.9) %(5.2) %         OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:        Tangible book value per common share (d)$68.94  $66.89  $61.80   3.1 %11.6 %Average interest earning assets 9,210,385   9,176,540   9,048,204   0.4 %1.8 %Pre-tax, pre-provision net income (j) 51,959   51,268   44,595   1.3 %16.5 %         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 March 31, 2025, December 31, 2024 and March 31, 2024               Percent change vs. (in thousands, except ratios)March 31, 2025December 31, 2024March 31, 2024 4Q '24 1Q '24 BALANCE SHEET:        Investment securities$1,042,163  $1,100,861  $1,339,747   (5.3)%(22.2)%Loans 7,883,735   7,817,128   7,525,005   0.9 %4.8 %Allowance for credit losses 88,130   87,966   85,084   0.2 %3.6 %Goodwill and other intangible assets 162,758   163,032   163,927   (0.2) %(0.7) %Other real estate owned (OREO) 119   938   1,674   (87.3) %(92.9) %Total assets 9,886,612   9,805,350   9,881,077   0.8 %0.1 %Total deposits 8,201,695   8,143,526   8,306,032   0.7 %(1.3) %Borrowings 270,757   280,083   295,130   (3.3) %(8.3) %Total shareholders' equity 1,279,042   1,243,848   1,161,979   2.8 %10.1 %Tangible equity (d) 1,116,284   1,080,816   998,052   3.3 %11.8 %Total nonperforming loans 63,148   69,932   71,759   (9.7) %(12.0) %Total nonperforming assets 63,267   70,870   73,433   (10.7) %(13.8) %         ASSET QUALITY RATIOS:        Loans as a % of period end total assets 79.74 % 79.72 % 76.16 % — %4.7 %Total nonperforming loans as a % of period end loans 0.80 % 0.89 % 0.95 % (10.1) %(15.8) %Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets 0.80 % 0.91 % 0.98 % (12.1) %(18.4) %Allowance for credit losses as a % of period end loans 1.12 % 1.13 % 1.13 % (0.9) %(0.9) %Net loan charge-offs$592  $3,206  $841   (81.5) %(29.6) %Annualized net loan charge-offs as a % of average loans (b) 0.03 % 0.16 % 0.05 % (81.3) %(40.0) %         CAPITAL & LIQUIDITY:        Total shareholders' equity / Period end total assets 12.94 % 12.69 % 11.76 % 2.0 %10.0 %Tangible equity (d) / Tangible assets (f) 11.48 % 11.21 % 10.27 % 2.4 %11.8 %Average shareholders' equity / Average assets (b) 12.64 % 12.47 % 11.74 % 1.4 %7.7 %Average shareholders' equity / Average loans (b) 16.22 % 16.08 % 15.48 % 0.9 %4.8 %Average loans / Average deposits (b) 93.56 % 93.00 % 91.11 % 0.6 %2.7 %         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   March 31 (in thousands, except share and per share data) 2025 2024       Interest income:     Interest and fees on loans $120,648 $111,211 Interest on debt securities:     Taxable  7,130  11,899 Tax-exempt  1,269  1,410 Other interest income  3,153  2,120 Total interest income  132,200  126,640       Interest expense:     Interest on deposits:     Demand and savings deposits  18,436  19,855 Time deposits  6,770  7,338 Interest on borrowings  2,617  3,824 Total interest expense  27,823  31,017       Net interest income  104,377  95,623       Provision for credit losses  756  2,180       Net interest income after provision for credit losses  103,621  93,443       Other income  25,746  26,200       Other expense  78,164  77,228       Income before income taxes  51,203  42,415       Income taxes  9,046  7,211       Net income $42,157 $35,204       Per common share:     Net income - basic $2.61 $2.18 Net income - diluted $2.60 $2.17       Weighted average common shares - basic  16,159,342  16,116,842 Weighted average common shares - diluted  16,238,701  16,191,065       Cash dividends declared:      Quarterly dividend $1.07 $1.06   PARK NATIONAL CORPORATIONConsolidated Balance Sheets   (in thousands, except share data)March 31, 2025December 31, 2024   Assets     Cash and due from banks$154,536 $122,363 Money market instruments 83,078  38,203 Investment securities 1,042,163  1,100,861 Loans 7,883,735  7,817,128 Allowance for credit losses (88,130) (87,966)Loans, net 7,795,605  7,729,162 Bank premises and equipment, net 66,327  69,522 Goodwill and other intangible assets 162,758  163,032 Other real estate owned 119  938 Other assets 582,026  581,269 Total assets$9,886,612 $9,805,350    Liabilities and Shareholders' Equity     Deposits:  Noninterest bearing$2,637,577 $2,612,708 Interest bearing 5,564,118  5,530,818 Total deposits 8,201,695  8,143,526 Borrowings 270,757  280,083 Other liabilities 135,118  137,893 Total liabilities$8,607,570 $8,561,502       Shareholders' Equity:  Preferred shares (200,000 shares authorized; no shares outstanding at March 31, 2025 and December 31, 2024)$— $— Common shares (No par value; 20,000,000 shares authorized; 17,623,104 shares issued at March 31, 2025 and December 31, 2024) 459,529  463,706 Accumulated other comprehensive loss, net of taxes (34,659) (46,175)Retained earnings 1,002,110  977,599 Treasury shares (1,431,757 shares at March 31, 2025 and 1,464,122 shares at December 31, 2024) (147,938) (151,282)Total shareholders' equity$1,279,042 $1,243,848 Total liabilities and shareholders' equity$9,886,612 $9,805,350   PARK NATIONAL CORPORATIONConsolidated Average Balance Sheets     Three Months Ended  March 31 (in thousands) 2025  2024      Assets       Cash and due from banks$127,229 $143,714  Money market instruments 287,016  155,511  Investment securities 1,069,620  1,368,527  Loans 7,833,234  7,482,650  Allowance for credit losses (88,825) (84,067) Loans, net 7,744,409  7,398,583  Bank premises and equipment, net 68,992  74,919  Goodwill and other intangible assets 162,938  164,137  Other real estate owned 918  1,088  Other assets 584,485  556,899  Total assets$10,045,607 $9,863,378          Liabilities and Shareholders' Equity       Deposits:   Noninterest bearing$2,578,838 $2,569,030  Interest bearing 5,793,915  5,644,088  Total deposits 8,372,753  8,213,118  Borrowings 269,254  361,703  Other liabilities 133,341  130,373  Total liabilities$8,775,348 $8,705,194      Shareholders' Equity:   Preferred shares$— $—  Common shares 464,046  463,518  Accumulated other comprehensive loss, net of taxes (39,942) (67,343) Retained earnings 997,399  917,645  Treasury shares (151,244) (155,636) Total shareholders' equity$1,270,259 $1,158,184  Total liabilities and shareholders' equity$10,045,607 $9,863,378    PARK NATIONAL CORPORATIONConsolidated Statements of Income - Linked Quarters       20252024202420242024(in thousands, except per share data)1st QTR4th QTR3rd QTR2nd QTR1st QTR      Interest income:     Interest and fees on loans$120,648 $120,870 $120,203 $115,318 $111,211 Interest on debt securities:     Taxable 7,130  8,641  10,228  10,950  11,899 Tax-exempt 1,269  1,351  1,381  1,382  1,410 Other interest income 3,153  2,751  1,996  1,254  2,120 Total interest income 132,200  133,613  133,808  128,904  126,640       Interest expense:     Interest on deposits:     Demand and savings deposits 18,436  19,802  22,762  20,370  19,855 Time deposits 6,770  7,658  7,073  7,525  7,338 Interest on borrowings 2,617  2,708  2,859  3,172  3,824 Total interest expense 27,823  30,168  32,694  31,067  31,017       Net interest income 104,377  103,445  101,114  97,837  95,623       Provision for credit losses 756  3,935  5,315  3,113  2,180       Net interest income after provision for credit losses 103,621  99,510  95,799  94,724  93,443       Other income 25,746  31,064  36,530  28,794  26,200       Other expense 78,164  83,241  85,681  75,189  77,228       Income before income taxes 51,203  47,333  46,648  48,329  42,415       Income taxes 9,046  8,703  8,431  8,960  7,211       Net income$42,157 $38,630 $38,217 $39,369 $35,204       Per common share:     Net income - basic$2.61 $2.39 $2.37 $2.44 $2.18 Net income - diluted$2.60 $2.37 $2.35 $2.42 $2.17   PARK NATIONAL CORPORATIONDetail of other income and other expense - Linked Quarters        2025  2024  2024  2024  2024 (in thousands)1st QTR4th QTR3rd QTR2nd QTR1st QTR      Other income:     Income from fiduciary activities$10,994 $11,122 $10,615 $10,728 $10,024 Service charges on deposit accounts 2,407  2,319  2,362  2,214  2,106 Other service income 2,936  3,277  3,036  2,906  2,524 Debit card fee income 6,089  6,511  6,539  6,580  6,243 Bank owned life insurance income 1,512  1,519  2,057  1,565  2,629 ATM fees 335  415  471  458  496 Pension settlement gain —  365  5,783  —  — (Loss) gain on the sale of OREO, net (229) (74) 2  (7) 121 Loss on sale of debt securities, net —  (128) —  —  (398)(Loss) gain on equity securities, net (862) 1,852  1,557  358  (687)Other components of net periodic benefit income 2,344  2,651  2,204  2,204  2,204 Miscellaneous 220  1,235  1,904  1,788  938 Total other income$25,746 $31,064 $36,530 $28,794 $26,200       Other expense:     Salaries$36,216 $37,254 $38,370 $35,954 $35,733 Employee benefits 10,516  10,129  10,162  9,873  11,560 Occupancy expense 3,519  2,929  3,731  2,975  3,181 Furniture and equipment expense 2,301  2,375  2,571  2,454  2,583 Data processing fees 10,529  10,450  11,764  9,542  8,808 Professional fees and services 7,307  10,465  7,842  6,022  6,817 Marketing 1,528  1,949  1,464  1,164  1,741 Insurance 1,686  1,600  1,640  1,777  1,718 Communication 1,202  1,104  955  1,002  1,036 State tax expense 1,186  1,145  1,116  1,129  1,110 Amortization of intangible assets 274  288  287  320  320 Foundation contributions —  —  2,000  —  — Miscellaneous 1,900  3,553  3,779  2,977  2,621 Total other expense$78,164 $83,241 $85,681 $75,189 $77,228        PARK NATIONAL CORPORATIONAsset Quality Information           Year ended December 31,(in thousands, except ratios) March 31, 2025 2024  2023  2022  2021  2020         Allowance for credit losses:       Allowance for credit losses, beginning of period $87,966 $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  3,605  18,334  10,863  9,133  5,093  10,304 Recoveries  3,013  8,012  5,942  6,758  8,441  27,246 Net charge-offs (recoveries)  592  10,322  4,921  2,375  (3,348) (16,942)Provision for (recovery of) credit losses  756  14,543  2,904  4,557  (11,916) 12,054 Allowance for credit losses, end of period $88,130 $87,966 $83,745 $85,379 $83,197 $85,675         General reserve trends:       Allowance for credit losses, end of period $88,130 $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.N.A. 678 Specific reserves on individually evaluated loans - accrual  —  —  —  —  42  44 Specific reserves on individually evaluated loans - nonaccrual  1,044  1,299  4,983  3,566  1,574  5,390 General reserves on collectively evaluated loans $87,086 $86,667 $78,762 $81,813 $81,581 $79,396         Total loans $7,883,735 $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)  2,139  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.N.A. 360,056 Individually evaluated loans - accrual (k)  13,935  15,290  —  11,477  17,517  8,756 Individually evaluated loans - nonaccrual  47,718  53,149  45,215  66,864  56,985  99,651 Collectively evaluated loans $7,819,943 $7,746,515 $7,428,171 $7,058,897 $6,789,471 $6,698,169         Asset Quality Ratios:       Net charge-offs (recoveries) as a % of average loans  0.03% 0.14% 0.07% 0.03% (0.05)% (0.24)%Allowance for credit losses as a % of period end loans  1.12% 1.13% 1.12% 1.20% 1.21% 1.19%General reserve as a % of collectively evaluated loans  1.11% 1.12% 1.06% 1.16% 1.20% 1.19%        Nonperforming assets:       Nonaccrual loans $61,929 $68,178 $60,259 $79,696 $72,722 $117,368 Accruing troubled debt restructurings (for years 2022 and prior) (k) N.A.N.A.N.A. 20,134  28,323  20,788 Loans past due 90 days or more  1,219  1,754  859  1,281  1,607  1,458 Total nonperforming loans $63,148 $69,932 $61,118 $101,111 $102,652 $139,614 Other real estate owned  119  938  983  1,354  775  1,431 Other nonperforming assets  —  —  —  —  2,750  3,164 Total nonperforming assets $63,267 $70,870 $62,101 $102,465 $106,177 $144,209 Percentage of nonaccrual loans to period end loans  0.79% 0.87% 0.81% 1.12% 1.06% 1.64%Percentage of nonperforming loans to period end loans  0.80% 0.89% 0.82% 1.42% 1.49% 1.95%Percentage of nonperforming assets to period end loans  0.80% 0.91% 0.83% 1.43% 1.55% 2.01%Percentage of nonperforming assets to period end total assets  0.64% 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 CORPORATIONAsset Quality Information (continued)           Year ended December 31,(in thousands, except ratios) March 31, 202520242023202220212020        New nonaccrual loan information:       Nonaccrual loans, beginning of period $68,178$60,259$79,696$72,722$117,368$90,080New nonaccrual loans  14,767 65,535 48,280 64,918 38,478 103,386Resolved nonaccrual loans  21,016 57,616 67,717 57,944 83,124 76,098Nonaccrual loans, end of period $61,929$68,178$60,259$79,696$72,722$117,368        Individually evaluated nonaccrual commercial loan portfolio information (period end):Unpaid principal balance $51,134$58,158$47,564$68,639$57,609$100,306Prior charge-offs  3,416 5,009 2,349 1,775 624 655Remaining principal balance  47,718 53,149 45,215 66,864 56,985 99,651Specific reserves  1,044 1,299 4,983 3,566 1,574 5,390Book value, after specific reserves $46,674$51,850$40,232$63,298$55,411$94,261        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 (in thousands, except share and per share data)March 31, 2025December 31, 2024March 31, 2024 Net interest income$104,377 $103,445 $95,623  less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions 175  250  352  less interest income on former Vision Bank relationships 1,019  38  2  Net interest income - adjusted$103,183 $103,157 $95,269       Provision for credit losses$756 $3,935 $2,180  less recoveries on former Vision Bank relationships (1,097) —  (953) Provision for credit losses - adjusted$1,853 $3,935 $3,133       Other income$25,746 $31,064 $26,200  less loss on sale of debt securities, net —  (128) (398) less pension settlement gain —  365  —  less impact of strategic initiatives (914) 117  (155) less Vision related (loss) gain on the sale of OREO, net (229) —  121  less other service income related to former Vision Bank relationships 3  299  7  Other income - adjusted$26,886 $30,411 $26,625       Other expense$78,164 $83,241 $77,228  less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions 274  288  320  less building demolition costs —  44  65  less direct expenses related to collection of payments on former Vision Bank loan relationships 276  215  —  Other expense - adjusted$77,614 $82,694 $76,843       Tax effect of adjustments to net income identified above (i)$(126)$(83)$(104)      Net income - reported$42,157 $38,630 $35,204  Net income - adjusted (h)$41,682 $38,319 $34,811       Diluted earnings per common share$2.60 $2.37 $2.17  Diluted earnings per common share, adjusted (h)$2.57 $2.35 $2.15       Annualized return on average assets (a)(b) 1.70% 1.54% 1.44% Annualized return on average assets, adjusted (a)(b)(h) 1.68% 1.52% 1.42%      Annualized return on average tangible assets (a)(b)(e) 1.73% 1.56% 1.46% Annualized return on average tangible assets, adjusted (a)(b)(e)(h) 1.71% 1.55% 1.44%      Annualized return on average shareholders' equity (a)(b) 13.46% 12.32% 12.23% Annualized return on average shareholders' equity, adjusted (a)(b)(h) 13.31% 12.22% 12.09%      Annualized return on average tangible equity (a)(b)(c) 15.44% 14.17% 14.24% Annualized return on average tangible equity, adjusted (a)(b)(c)(h) 15.27% 14.06% 14.08%      Efficiency ratio (g) 59.79% 61.60% 63.07% Efficiency ratio, adjusted (g)(h) 59.39% 61.63% 62.72%      Annualized net interest margin (g) 4.62% 4.51% 4.28% Annualized net interest margin, adjusted (g)(h) 4.57% 4.50% 4.26% 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 March 31, 2025, December 31, 2024, and March 31, 2024, 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  March 31, 2025December 31, 2024March 31, 2024 AVERAGE SHAREHOLDERS' EQUITY$1,270,259$1,247,680$1,158,184 Less: Average goodwill and other intangible assets 162,938 163,221 164,137 AVERAGE TANGIBLE EQUITY$1,107,321$1,084,459$994,047      (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: March 31, 2025December 31, 2024March 31, 2024 TOTAL SHAREHOLDERS' EQUITY$1,279,042$1,243,848$1,161,979 Less: Goodwill and other intangible assets 162,758 163,032 163,927 TANGIBLE EQUITY$1,116,284$1,080,816$998,052      (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  March 31, 2025December 31, 2024March 31, 2024 AVERAGE ASSETS$10,045,607$10,008,328$9,863,378 Less: Average goodwill and other intangible assets 162,938 163,221 164,137 AVERAGE TANGIBLE ASSETS$9,882,669$9,845,107$9,699,241      (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: March 31, 2025December 31, 2024March 31, 2024 TOTAL ASSETS$9,886,612$9,805,350$9,881,077 Less: Goodwill and other intangible assets 162,758 163,032 163,927 TANGIBLE ASSETS$9,723,854$9,642,318$9,717,150      (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  March 31, 2025December 31, 2024March 31, 2024 Interest income$132,200$133,613$126,640 Fully taxable equivalent adjustment 607 617 616 Fully taxable equivalent interest income$132,807$134,230$127,256 Interest expense 27,823 30,168 31,017 Fully taxable equivalent net interest income$104,984$104,062$96,239      (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 March 31, 2025December 31, 2024March 31, 2024Net income$42,157$38,630$35,204 Plus: Income taxes 9,046 8,703 7,211 Plus: Provision for credit losses 756 3,935 2,180 Pre-tax, pre-provision net income$51,959$51,268$44,595      (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, accruing individually evaluated loans decreased by $11.5 million effective January 1, 2023. 

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