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Park National Corporation reports financial results for second quarter and first half of 2025

1. Park National Corporation reports strong earnings growth of 22.2% in Q2 2025. 2. Quarterly dividend of $1.07 declared, reflecting stable shareholder returns. 3. Total loans increased by 1.9% in the first half of 2025, signaling lending stability. 4. Earnings per share rose by 21%, indicating robust profit margin management. 5. Nonperforming loans decreased, showcasing improving asset quality.

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Why Bullish?

Park's substantial earnings growth and dividend payment are confidence boosters. Historically, similar performance led to positive stock movements.

How important is it?

The positive financial results signify strong operational health, likely attracting investor interest. Consistent earnings growth usually correlates with stock price increases.

Why Short Term?

Immediate effects are likely with upcoming dividend and earnings announcements influencing investor sentiment. Previous trends show quick market reactions to good earnings.

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NEWARK, Ohio, July 28, 2025 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the second quarter and first half of 2025. Park's board of directors declared a quarterly cash dividend of $1.07 per common share, payable on September 10, 2025, to common shareholders of record as of August 15, 2025. “Our quarterly and mid-year performance reflects our organization’s soundness and our bankers’ unwavering dedication,” said Park Chairman and CEO David Trautman. “Their commitment to serving our customers and communities with integrity and care continues to set us apart. We remain focused on navigating change, serving our customers and delivering long-term value for our shareholders.” Park’s net income for the second quarter of 2025 was $48.1 million, a 22.2 percent increase from $39.4 million for the second quarter of 2024. Second quarter of 2025 net income per diluted common share was $2.97, compared to $2.42 for the second quarter of 2024. Park's net income for the first half of 2025 was $90.3 million, a 21.1 percent increase from $74.6 million for the first half of 2024. Net income per diluted common share for the first half of 2025 was $5.56, compared to $4.60 for the first half of 2024. Park's total loans increased 1.9 percent (3.8 percent annualized) during the first half of 2025 and increased 3.9 percent for the 12-month period ended June 30, 2025. Park's reported period end deposits increased 1.2 percent (2.3 percent annualized) during the first half of 2025, with an increase of 2.8 percent (5.7 percent annualized), including deposits that Park moved off balance sheet as of June 30, 2025. Park's reported period end deposits decreased 0.9 percent for the 12-month period ended June 30, 2025, with an increase of 2.2 percent, including deposits that Park moved off balance sheet as of June 30, 2025. The combination of solid loan growth and steady deposits continue to contribute to Park's success in the first half of 2025. “Through the first half of 2025, we delivered a 21 percent increase in earnings per share compared to the same period last year – driven by disciplined expense control, continued margin expansion and a clear focus on execution,” said Park President Matthew Miller. “I’ve had the privilege of seeing firsthand how our bankers show up every day; their service mindset is a key driver for our steady financial performance.” Headquartered in Newark, Ohio, Park National Corporation has $9.9 billion in total assets (as of June 30, 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 1995Park 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 CORPORATIONFinancial HighlightsAs of or for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024         2025  2025  2024  Percent change 2Q ’25 vs.(in thousands, except common share and per common share data and ratios)2nd QTR1st QTR2nd QTR 1Q '252Q '24INCOME STATEMENT:      Net interest income$108,991 $104,377 $97,837  4.4%11.4%Provision for credit losses 2,853  756  3,113  277.4%(8.4)%Other income 32,186  25,746  28,794  25.0%11.8%Other expense 78,977  78,164  75,189  1.0%5.0%Income before income taxes$59,347 $51,203 $48,329  15.9%22.8%Income taxes 11,228  9,046  8,960  24.1%25.3%Net income$48,119 $42,157 $39,369  14.1%22.2%       MARKET DATA:      Earnings per common share - basic (a)$2.98 $2.61 $2.44  14.2%22.1%Earnings per common share - diluted (a) 2.97  2.60  2.42  14.2%22.7%Quarterly cash dividend declared per common share 1.07  1.07  1.06  —%0.9%Book value per common share at period end 80.55  79.00  73.27  2.0%9.9%Market price per common share at period end 167.26  151.40  142.34  10.5%17.5%Market capitalization at period end 2,688,093  2,451,370  2,298,723  9.7%16.9%       Weighted average common shares - basic (b) 16,129,951  16,159,342  16,149,523  (0.2)%(0.1)%Weighted average common shares - diluted (b) 16,215,565  16,238,701  16,239,617  (0.1)%(0.1)%Common shares outstanding at period end 16,071,347  16,191,347  16,149,523  (0.7)%(0.5)%       PERFORMANCE RATIOS: (annualized)      Return on average assets (a)(b) 1.92% 1.70% 1.61% 12.9%19.3%Return on average shareholders' equity (a)(b) 14.96% 13.46% 13.52% 11.1%10.7%Yield on loans 6.37% 6.26% 6.13% 1.8%3.9%Yield on investment securities 3.21% 3.25% 3.83% (1.2)%(16.2)%Yield on money market instruments 4.34% 4.46% 5.33% (2.7)%(18.6)%Yield on interest earning assets 5.95% 5.85% 5.78% 1.7%2.9%Cost of interest bearing deposits 1.73% 1.76% 1.99% (1.7)%(13.1)%Cost of borrowings 3.92% 3.94% 4.08% (0.5)%(3.9)%Cost of paying interest bearing liabilities 1.83% 1.86% 2.10% (1.6)%(12.9)%Net interest margin (g) 4.75% 4.62% 4.39% 2.8%8.2%Efficiency ratio (g) 55.68% 59.79% 59.09% (6.9)%(5.8)%       OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:      Tangible book value per common share (d)$70.44 $68.94 $63.14  2.2%11.6%Average interest earning assets 9,252,016  9,210,385  9,016,905  0.5%2.6%Pre-tax, pre-provision net income (j) 62,200  51,959  51,442  19.7%20.9%       Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.              PARK NATIONAL CORPORATIONFinancial Highlights (continued)As of or for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024              Percent change 2Q ’25 vs.(in thousands, except ratios)June 30, 2025March 31, 2025June 30, 2024 1Q '252Q '24BALANCE SHEET:      Investment securities$1,062,526 $1,042,163 $1,264,858  2.0%(16.0)%Loans 7,963,221  7,883,735  7,664,377  1.0%3.9%Allowance for credit losses 89,785  88,130  86,575  1.9%3.7%Goodwill and other intangible assets 162,485  162,758  163,607  (0.2)%(0.7)%Other real estate owned (OREO) 638  119  1,210  436.1%(47.3)%Total assets 9,949,578  9,886,612  9,919,783  0.6%0.3%Total deposits 8,237,766  8,201,695  8,312,505  0.4%(0.9)%Borrowings 285,582  270,757  283,874  5.5%0.6%Total shareholders' equity 1,294,480  1,279,042  1,183,257  1.2%9.4%Tangible equity (d) 1,131,995  1,116,284  1,019,650  1.4%11.0%Total nonperforming loans 65,507  63,148  72,745  3.7%(9.9)%Total nonperforming assets 66,145  63,267  73,955  4.5%(10.6)%       ASSET QUALITY RATIOS:      Loans as a % of period end total assets 80.04% 79.74% 77.26% 0.4%3.6%Total nonperforming loans as a % of period end loans 0.82% 0.80% 0.95% 2.5%(13.7)%Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets 0.83% 0.80% 0.96% 3.8%(13.5)%Allowance for credit losses as a % of period end loans 1.13% 1.12% 1.13% 0.9%—%Net loan charge-offs$1,198 $592 $1,622  102.4%(26.1)%Annualized net loan charge-offs as a % of average loans (b) 0.06% 0.03% 0.09% 100.0%(33.3)%       CAPITAL & LIQUIDITY:      Total shareholders' equity / Period end total assets 13.01% 12.94% 11.93% 0.5%9.1%Tangible equity (d) / Tangible assets (f) 11.57% 11.48% 10.45% 0.8%10.7%Average shareholders' equity / Average assets (b) 12.80% 12.64% 11.94% 1.3%7.2%Average shareholders' equity / Average loans (b) 16.28% 16.22% 15.44% 0.4%5.4%Average loans / Average deposits (b) 94.37% 93.56% 92.53% 0.9%2.0%       Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section. PARK NATIONAL CORPORATIONFinancial HighlightsSix months ended June 30, 2025 and June 30, 2024       2025  2024   (in thousands, except common share and per common share data and ratios)Six monthsended June 30Six monthsended June 30 Percent change’25 vs '24INCOME STATEMENT:    Net interest income$213,368 $193,460  10.3%Provision for credit losses 3,609  5,293  (31.8)%Other income 57,932  54,994  5.3%Other expense 157,141  152,417  3.1%Income before income taxes$110,550 $90,744  21.8%Income taxes 20,274  16,171  25.4%Net income$90,276 $74,573  21.1%     MARKET DATA:    Earnings per common share - basic (a)$5.59 $4.62  21.0%Earnings per common share - diluted (a) 5.56  4.60  20.9%Quarterly cash dividend declared per common share 2.14  2.12  0.9%     Weighted average common shares - basic (b) 16,144,647  16,133,183  0.1%Weighted average common shares - diluted (b) 16,227,150  16,215,342  0.1%     PERFORMANCE RATIOS: (annualized)    Return on average assets (a)(b) 1.81% 1.52% 19.1%Return on average shareholders' equity (a)(b) 14.22% 12.88% 10.4%Yield on loans 6.32% 6.06% 4.3%Yield on investment securities 3.23% 3.87% (16.5)%Yield on money market instruments 4.40% 5.42% (18.8)%Yield on interest earning assets 5.90% 5.72% 3.1%Cost of interest bearing deposits 1.75% 1.97% (11.2)%Cost of borrowings 3.93% 4.17% (5.8)%Cost of paying interest bearing liabilities 1.84% 2.09% (12.0)%Net interest margin (g) 4.69% 4.33% 8.3%Efficiency ratio (g) 57.65% 61.05% (5.6)%     ASSET QUALITY RATIOS:    Net loan charge-offs$1,790 $2,463  (27.3)%Annualized net loan charge-offs as a % of average loans (b) 0.05% 0.07% (28.6)%     CAPITAL & LIQUIDITY:    Average shareholders' equity / Average assets (b) 12.72% 11.84% 7.4%Average shareholders' equity / Average loans (b) 16.25% 15.46% 5.1%Average loans / Average deposits (b) 93.96% 91.82% 2.3%     OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:    Average interest earning assets 9,231,316  9,032,554  2.2%Pre-tax, pre-provision net income (j) 114,159  96,037  18.9%     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 Six Months Ended June 30 June 30(in thousands, except share and per share data) 2025  2024  2025  2024        Interest income:       Interest and fees on loans$125,543 $115,318 $246,191 $226,529Interest on debt securities:       Taxable 6,693  10,950  13,823  22,849Tax-exempt 1,503  1,382  2,772  2,792Other interest income 2,757  1,254  5,910  3,374 Total interest income 136,496  128,904  268,696  255,544        Interest expense:       Interest on deposits:       Demand and savings deposits 19,055  20,370  37,491  40,225Time deposits 5,821  7,525  12,591  14,863Interest on borrowings 2,629  3,172  5,246  6,996 Total interest expense 27,505  31,067  55,328  62,084         Net interest income 108,991  97,837  213,368  193,460        Provision for credit losses 2,853  3,113  3,609  5,293         Net interest income after provision for credit losses 106,138  94,724  209,759  188,167        Other income 32,186  28,794  57,932  54,994        Other expense 78,977  75,189  157,141  152,417         Income before income taxes 59,347  48,329  110,550  90,744        Income taxes 11,228  8,960  20,274  16,171         Net income$48,119 $39,369 $90,276 $74,573        Per common share:        Net income - basic$2.98 $2.44 $5.59 $4.62 Net income - diluted$2.97 $2.42 $5.56 $4.60         Weighted average common shares - basic 16,129,951  16,149,523  16,144,647  16,133,183 Weighted average common shares - diluted 16,215,565  16,239,617  16,227,150  16,215,342         Cash dividends declared:       Quarterly dividend$1.07 $1.06 $2.14 $2.12 PARK NATIONAL CORPORATION Consolidated Balance Sheets   (in thousands, except share data)June 30, 2025December 31, 2024   Assets     Cash and due from banks$147,917 $122,363 Money market instruments 45,202  38,203 Investment securities 1,062,526  1,100,861 Loans 7,963,221  7,817,128 Allowance for credit losses (89,785) (87,966)Loans, net 7,873,436  7,729,162 Bank premises and equipment, net 64,205  69,522 Goodwill and other intangible assets 162,485  163,032 Other real estate owned 638  938 Other assets 593,169  581,269 Total assets$9,949,578 $9,805,350    Liabilities and Shareholders' Equity     Deposits:  Noninterest bearing$2,620,106 $2,612,708 Interest bearing 5,617,660  5,530,818 Total deposits 8,237,766  8,143,526 Borrowings 285,582  280,083 Other liabilities 131,750  137,893 Total liabilities$8,655,098 $8,561,502       Shareholders' Equity:  Preferred shares (200,000 shares authorized; no shares outstanding at June 30, 2025 or December 31, 2024)$— $— Common shares (No par value; 40,000,000 shares authorized at June 30, 2025 and 20,000,000 at December 31, 2024; 17,623,104 shares issued at June 30, 2025 and December 31, 2024) 461,266  463,706 Accumulated other comprehensive loss, net of taxes (31,507) (46,175)Retained earnings 1,032,793  977,599 Treasury shares (1,551,757 shares at June 30, 2025 and 1,464,122 shares at December 31, 2024) (168,072) (151,282)Total shareholders' equity$1,294,480 $1,243,848 Total liabilities and shareholders' equity$9,949,578 $9,805,350  PARK NATIONAL CORPORATION Consolidated Average Balance Sheets       Three Months Ended Six Months Ended June 30 June 30(in thousands) 2025  2024   2025  2024       Assets           Cash and due from banks$114,619 $124,906  $120,889 $134,310 Money market instruments 254,697  94,658   270,767  125,084 Investment securities 1,061,693  1,285,086   1,065,635  1,326,807 Loans 7,922,263  7,587,127   7,877,994  7,534,889 Allowance for credit losses (88,773) (85,397)  (88,799) (84,732)Loans, net 7,833,490  7,501,730   7,789,195  7,450,157 Bank premises and equipment, net 65,800  73,340   67,387  74,130 Goodwill and other intangible assets 162,664  163,816   162,800  163,977 Other real estate owned 40  1,389   477  1,239 Other assets 585,458  566,401   584,975  561,648 Total assets$10,078,461 $9,811,326  $10,062,125 $9,837,352       Liabilities and Shareholders' Equity     Deposits:     Noninterest bearing$2,626,232 $2,572,947  $2,602,666 $2,570,989 Interest bearing 5,768,900  5,626,577   5,781,338  5,635,332 Total deposits 8,395,132  8,199,524   8,384,004  8,206,321 Borrowings 269,088  312,963   269,170  337,333 Other liabilities 124,200  127,492   128,746  128,933 Total liabilities$8,788,420 $8,639,979  $8,781,920 $8,672,587       Shareholders' Equity:     Preferred shares$— $—  $— $— Common shares 460,238  459,546   462,132  461,532 Accumulated other comprehensive loss, net of taxes (34,291) (73,705)  (37,101) (70,524)Retained earnings 1,022,323  937,765   1,009,930  927,705 Treasury shares (158,229) (152,259)  (154,756) (153,948)Total shareholders' equity$1,290,041 $1,171,347  $1,280,205 $1,164,765 Total liabilities and shareholders' equity$10,078,461 $9,811,326  $10,062,125 $9,837,352        PARK NATIONAL CORPORATION Consolidated Statements of Income - Linked Quarters       20252025202420242024(in thousands, except per share data)2nd QTR1st QTR4th QTR3rd QTR2nd QTR      Interest income:     Interest and fees on loans$125,543$120,648$120,870$120,203$115,318Interest on debt securities:     Taxable 6,693 7,130 8,641 10,228 10,950Tax-exempt 1,503 1,269 1,351 1,381 1,382Other interest income 2,757 3,153 2,751 1,996 1,254Total interest income 136,496 132,200 133,613 133,808 128,904      Interest expense:     Interest on deposits:     Demand and savings deposits 19,055 18,436 19,802 22,762 20,370Time deposits 5,821 6,770 7,658 7,073 7,525Interest on borrowings 2,629 2,617 2,708 2,859 3,172Total interest expense 27,505 27,823 30,168 32,694 31,067      Net interest income 108,991 104,377 103,445 101,114 97,837      Provision for credit losses 2,853 756 3,935 5,315 3,113      Net interest income after provision for credit losses 106,138 103,621 99,510 95,799 94,724      Other income 32,186 25,746 31,064 36,530 28,794      Other expense 78,977 78,164 83,241 85,681 75,189      Income before income taxes 59,347 51,203 47,333 46,648 48,329      Income taxes 11,228 9,046 8,703 8,431 8,960      Net income $48,119$42,157$38,630$38,217$39,369      Per common share:     Net income - basic$2.98$2.61$2.39$2.37$2.44Net income - diluted$2.97$2.60$2.37$2.35$2.42 PARK NATIONAL CORPORATION Detail of other income and other expense - Linked Quarters       20252025202420242024(in thousands)2nd QTR1st QTR4th QTR3rd QTR2nd QTR      Other income:     Income from fiduciary activities$11,622$10,994 $11,122 $10,615$10,728 Service charges on deposit accounts 2,514 2,407  2,319  2,362 2,214 Other service income 3,731 2,936  3,277  3,036 2,906 Debit card fee income 6,607 6,089  6,511  6,539 6,580 Bank owned life insurance income 1,762 1,512  1,519  2,057 1,565 ATM fees 367 335  415  471 458 Pension settlement gain — —  365  5,783 — Gain (loss) on the sale of OREO, net 27 (229) (74) 2 (7)Loss on sale of debt securities, net — —  (128) — — Gain (loss) on equity securities, net 2,480 (862) 1,852  1,557 358 Other components of net periodic benefit income 2,344 2,344  2,651  2,204 2,204 Miscellaneous 732 220  1,235  1,904 1,788 Total other income$32,186$25,746 $31,064 $36,530$28,794       Other expense:     Salaries$38,560$36,216 $37,254 $38,370$35,954 Employee benefits 9,108 10,516  10,129  10,162 9,873 Occupancy expense 3,269 3,519  2,929  3,731 2,975 Furniture and equipment expense 2,234 2,301  2,375  2,571 2,454 Data processing fees 11,021 10,529  10,450  11,764 9,542 Professional fees and services 7,395 7,307  10,465  7,842 6,022 Marketing 1,295 1,528  1,949  1,464 1,164 Insurance 1,667 1,686  1,600  1,640 1,777 Communication 941 1,202  1,104  955 1,002 State tax expense 1,350 1,186  1,145  1,116 1,129 Amortization of intangible assets 273 274  288  287 320 Foundation contributions — —  —  2,000 — Miscellaneous 1,864 1,900  3,553  3,779 2,977 Total other expense$78,977$78,164 $83,241 $85,681$75,189        PARK NATIONAL CORPORATION Asset Quality Information           Year ended December 31,(in thousands, except ratios)June 30,2025March 31,2025 2024  2023  2022  2021  2020         Allowance for credit losses:       Allowance for credit losses, beginning of period$88,130 $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 3,959  3,605  18,334  10,863  9,133  5,093  10,304 Recoveries 2,761  3,013  8,012  5,942  6,758  8,441  27,246 Net charge-offs (recoveries) 1,198  592  10,322  4,921  2,375  (3,348) (16,942)Provision for (recovery of) credit losses 2,853  756  14,543  2,904  4,557  (11,916) 12,054 Allowance for credit losses, end of period$89,785 $88,130 $87,966 $83,745 $85,379 $83,197 $85,675         General reserve trends:       Allowance for credit losses, end of period$89,785 $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.  N.A.  678 Specific reserves on individually evaluated loans - accrual —  —  —  —  —  42  44 Specific reserves on individually evaluated loans - nonaccrual 774  1,044  1,299  4,983  3,566  1,574  5,390 General reserves on collectively evaluated loans$89,011 $87,086 $86,667 $78,762 $81,813 $81,581 $79,396         Total loans$7,963,221 $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) 2,004  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.  N.A.  360,056 Individually evaluated loans - accrual (k) 14,019  13,935  15,290  —  11,477  17,517  8,756 Individually evaluated loans - nonaccrual 46,547  47,718  53,149  45,215  66,864  56,985  99,651 Collectively evaluated loans$7,900,651 $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 0.06% 0.03% 0.14% 0.07% 0.03%(0.05)%(0.24)%Allowance for credit losses as a % of period end loans 1.13% 1.12% 1.13% 1.12% 1.20% 1.21% 1.19%General reserve as a % of collectively evaluated loans 1.13% 1.11% 1.12% 1.06% 1.16% 1.20% 1.19%        Nonperforming assets:       Nonaccrual loans$63,080 $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.  N.A.  20,134  28,323  20,788 Loans past due 90 days or more 2,427  1,219  1,754  859  1,281  1,607  1,458 Total nonperforming loans$65,507 $63,148 $69,932 $61,118 $101,111 $102,652 $139,614 Other real estate owned 638  119  938  983  1,354  775  1,431 Other nonperforming assets —  —  —  —  —  2,750  3,164 Total nonperforming assets$66,145 $63,267 $70,870 $62,101 $102,465 $106,177 $144,209 Percentage of nonaccrual loans to period end loans 0.79% 0.79% 0.87% 0.81% 1.12% 1.06% 1.64%Percentage of nonperforming loans to period end loans 0.82% 0.80% 0.89% 0.82% 1.42% 1.49% 1.95%Percentage of nonperforming assets to period end loans 0.83% 0.80% 0.91% 0.83% 1.43% 1.55% 2.01%Percentage of nonperforming assets to period end total assets 0.66% 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 CORPORATION Asset Quality Information (continued)           Year ended December 31,(in thousands, except ratios)June 30,2025March 31,202520242023202220212020        New nonaccrual loan information:       Nonaccrual loans, beginning of period$61,929$68,178$60,259$79,696$72,722$117,368$90,080New nonaccrual loans 13,898 14,767 65,535 48,280 64,918 38,478 103,386Resolved nonaccrual loans 12,747 21,016 57,616 67,717 57,944 83,124 76,098Nonaccrual loans, end of period$63,080$61,929$68,178$60,259$79,696$72,722$117,368        Individually evaluated nonaccrual commercial loan portfolio information (period end): Unpaid principal balance$50,048$51,134$58,158$47,564$68,639$57,609$100,306Prior charge-offs 3,501 3,416 5,009 2,349 1,775 624 655Remaining principal balance 46,547 47,718 53,149 45,215 66,864 56,985 99,651Specific reserves 774 1,044 1,299 4,983 3,566 1,574 5,390Book value, after specific reserves$45,773$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 CORPORATIONFinancial ReconciliationsNON-GAAP RECONCILIATIONS THREE MONTHS ENDED SIX MONTHS ENDED(in thousands, except share and per share data)June 30,2025March 31,2025June 30,2024 June 30,2025June 30,2024Net interest income$108,991 $104,377 $97,837  $213,368 $193,460 less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions 168  175  271   343  623 less interest income on former Vision Bank relationships 1,006  1,019  5   2,025  7 Net interest income - adjusted$107,817 $103,183 $97,561  $211,000 $192,830        Provision for credit losses$2,853 $756 $3,113  $3,609 $5,293 less recoveries on former Vision Bank relationships (717) (1,097) (117)  (1,814) (1,070)Provision for credit losses - adjusted$3,570 $1,853 $3,230  $5,423 $6,363        Other income$32,186 $25,746 $28,794  $57,932 $54,994 less loss on sale of debt securities, net —  —  —   —  (398)less impact of strategic initiatives 18  (914) 813   (896) 658 less Vision related (loss) gain on the sale of OREO, net —  (229) (7)  (229) 114 less other service income related to former Vision Bank relationships —  3  6   3  13 Other income - adjusted$32,168 $26,886 $27,982  $59,054 $54,607        Other expense$78,977 $78,164 $75,189  $157,141 $152,417 less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions 273  274  320   547  640 less building demolition costs —  —  —   —  65 less direct expenses related to collection of payments on former Vision Bank loan relationships 239  276  —   515  — Other expense - adjusted$78,465 $77,614 $74,869  $156,079 $151,712        Tax effect of adjustments to net income identified above (i)$(293)$(126)$(186) $(420)$(290)       Net income - reported$48,119 $42,157 $39,369  $90,276 $74,573 Net income - adjusted (h)$47,015 $41,682 $38,670  $88,698 $73,481        Diluted earnings per common share$2.97 $2.60 $2.42  $5.56 $4.60 Diluted earnings per common share, adjusted (h)$2.90 $2.57 $2.38  $5.47 $4.53        Annualized return on average assets (a)(b) 1.92% 1.70% 1.61%  1.81% 1.52%Annualized return on average assets, adjusted (a)(b)(h) 1.87% 1.68% 1.59%  1.78% 1.50%       Annualized return on average tangible assets (a)(b)(e) 1.95% 1.73% 1.64%  1.84% 1.55%Annualized return on average tangible assets, adjusted (a)(b)(e)(h) 1.90% 1.71% 1.61%  1.81% 1.53%       Annualized return on average shareholders' equity (a)(b) 14.96% 13.46% 13.52%  14.22% 12.88%Annualized return on average shareholders' equity, adjusted (a)(b)(h) 14.62% 13.31% 13.28%  13.97% 12.69%       Annualized return on average tangible equity (a)(b)(c) 17.12% 15.44% 15.72%  16.29% 14.98%Annualized return on average tangible equity, adjusted (a)(b)(c)(h) 16.73% 15.27% 15.44%  16.01% 14.77%       Efficiency ratio (g) 55.68% 59.79% 59.09%  57.65% 61.05%Efficiency ratio, adjusted (g)(h) 55.78% 59.39% 59.35%  57.52% 61.01%       Annualized net interest margin (g) 4.75% 4.62% 4.39%  4.69% 4.33%Annualized net interest margin, adjusted (g)(h) 4.70% 4.57% 4.38%  4.64% 4.32%                 Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section. PARK NATIONAL CORPORATIONFinancial Reconciliations (continued) (a) Reported measure uses net income.(b) Averages are for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024 and the six months ended June 30, 2025 and June 30, 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 SIX MONTHS ENDED June 30, 2025March 31, 2025June 30, 2024 June 30, 2025June 30, 2024AVERAGE SHAREHOLDERS' EQUITY$1,290,041$1,270,259$1,171,347 $1,280,205$1,164,765Less: Average goodwill and other intangible assets 162,664 162,938 163,816  162,800 163,977AVERAGE TANGIBLE EQUITY$1,127,377$1,107,321$1,007,531 $1,117,405$1,000,788(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: June 30, 2025March 31, 2025June 30, 2024   TOTAL SHAREHOLDERS' EQUITY$1,294,480$1,279,042$1,183,257   Less: Goodwill and other intangible assets 162,485 162,758 163,607   TANGIBLE EQUITY$1,131,995$1,116,284$1,019,650   (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 SIX MONTHS ENDED June 30, 2025March 31, 2025June 30, 2024 June 30, 2025June 30, 2024AVERAGE ASSETS$10,078,461$10,045,607$9,811,326 $10,062,125$9,837,352Less: Average goodwill and other intangible assets 162,664 162,938 163,816  162,800 163,977AVERAGE TANGIBLE ASSETS$9,915,797$9,882,669$9,647,510 $9,899,325$9,673,375       (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: June 30, 2025March 31, 2025June 30, 2024   TOTAL ASSETS$9,949,578$9,886,612$9,919,783   Less: Goodwill and other intangible assets 162,485 162,758 163,607   TANGIBLE ASSETS$9,787,093$9,723,854$9,756,176          (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 SIX MONTHS ENDED June 30, 2025March 31, 2025June 30, 2024 June 30, 2025June 30, 2024Interest income$136,496$132,200$128,904 $268,696$255,544Fully taxable equivalent adjustment 675 607 605  1,282 1,221Fully taxable equivalent interest income$137,171$132,807$129,509 $269,978$256,765Interest expense 27,505 27,823 31,067  55,328 62,084Fully taxable equivalent net interest income$109,666$104,984$98,442 $214,650$194,681       (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.        PARK NATIONAL CORPORATIONFinancial Reconciliations (continued)       RECONCILIATION OF PRE-TAX, PRE-PROVISION NET INCOME THREE MONTHS ENDED SIX MONTHS ENDED June 30, 2025March 31, 2025June 30, 2024 June 30, 2025June 30, 2024Net income$48,119$42,157$39,369 $90,276$74,573Plus: Income taxes 11,228 9,046 8,960  20,274 16,171Plus: Provision for credit losses 2,853 756 3,113  3,609 5,293Pre-tax, pre-provision net income$62,200$51,959$51,442 $114,159$96,037       (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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