NEWARK, Ohio, Jan. 24, 2011 (GLOBE NEWSWIRE) -- Park National Corporation (NYSE Amex:PRK) (Park) today reported financial results for the three months ended December 31, 2010 and the year ended December 31, 2010. Park's Board of Directors also today declared a $0.94 per common share quarterly cash dividend, payable on March 10, 2011 to common shareholders of record on February 25, 2011.
Park's net income was $74.2 million for each of the years ended December 31, 2010 and 2009. Net income for the 2010 fourth quarter was $12.7 million, a slight increase from $12.3 million earned in the same period in 2009.
The issuance of common shares over the last four quarters resulted in a decline in net income per diluted common share compared to last year. Net income per diluted common share for the 2010 year was $4.51, a 6.4 percent decline from the $4.82 reported in 2009. Net income per diluted common share for the 2010 fourth quarter was $0.73, a 1.4 percent decline from $0.74 in the fourth quarter of 2009.
Park, excluding Vision Bank (Park's Ohio-based operations), reported net income of $103.5 million for the 2010 year, compared to 2009 net income of $104.3 million. This performance resulted in return on assets of 1.58 percent and 1.61 percent for Park's Ohio-based operations in 2010 and 2009, respectively. Additionally, Park's two Ohio-based subsidiaries, The Park National Bank and Guardian Financial Services Company, generated record earnings in the 2010 year.
Loan growth for Park's Ohio-based operations was $128.7 million, or 3.2 percent, during 2010. Nonperforming loans for Park's Ohio-based operations increased by $32.2 million in 2010, ending the year at $121.0 million, or 2.96 percent of period-end loans. Of the $32.2 million increase in nonperforming loans, $26.7 million was due to loans purchased from Vision Bank subsequent to Park's 2007 acquisition. Without these loan purchases, Park's Ohio-based operations would have experienced a $5.5 million increase in nonperforming loans in 2010.
"We are very pleased with our results in Ohio. Interest rates for 15- and 30-year home loans during 2010, combined with our local servicing, were especially appealing," said Park Chairman C. Daniel DeLawder. "More than 20 percent of the home loans we refinanced in Ohio last year were for clients whose original loan was from another lender. It remains a very attractive time to borrow money. We have it to lend and we continue to welcome opportunities to lend to individuals and businesses alike."
In 2010, Park continued to proactively increase its allowance for loan losses, providing additional reserves for future losses in the loan portfolio. At December 31, 2010, the allowance for loan losses was $121.4 million, a 4.0 percent increase compared to $116.7 million at December 31, 2009. Nonperforming loans ended the 2010 year at $292.9 million, or 6.19 percent of period-end loans, compared to $248.5 million, or 5.35 percent of period-end loans in 2009.
Park's loan loss provision for the 2010 year was $64.9 million, compared to $68.8 million in 2009. Park's Ohio-based operations had a loan loss provision of $25.7 million in 2010, compared to $24.4 million in 2009. Park subsidiary Vision Bank had a loan loss provision of $39.2 million in 2010, compared to $44.4 million in 2009. Net loan charge-offs at Park for the 2010 year were $60.2 million, or 1.30 percent of average loans outstanding, compared to $52.2 million or 1.14 percent of average loans in 2009.
Capital Raising Activities
Capital-raising activities over the past seven quarters increased common shares outstanding by 1,413,256 or 10.1 percent, generating a net total of approximately $87 million. For the 2010 year, Park issued 509,184 common shares at a weighted average price per share of $67.99, for gross proceeds of $34.6 million. The weighted average price per share of $67.99 represents a multiple of 1.6 times the December 31, 2009 common book value per share of $41.71. After all expenses, Park raised an additional $33.5 million of common equity from the sale of these common shares in 2010.
During 2010, Park realized a pre-tax gain of $11.9 million from the sale of investment securities. Park's 2009 results included a pre-tax gain of $7.3 million from the sale of investment securities.
Headquartered in Newark, Ohio, Park National Corporation has $7.3 billion in total assets (as of December 31, 2010). Park consists of 13 community bank divisions and two specialty finance companies. Park's Ohio-based banking operations are conducted through Park subsidiary The Park National Bank and its divisions which include Fairfield National Bank Division, Richland Bank Division, Century National Bank Division, First-Knox National Bank Division, Farmers & Savings Bank Division, United Bank Division, Second National Bank Division, Security National Bank Division, Unity National Bank Division and The Park National Bank of Southwest Ohio & Northern Kentucky Division. Park's other banking subsidiary is Vision Bank (headquartered in Panama City, Florida), and its Vision Bank Division (of Gulf Shores, Alabama). Park also includes Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance) and Guardian Financial Services Company (d.b.a. Guardian Finance Company).
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation: deterioration in the asset value of Park's loan portfolio may be worse than expected due to a number of factors, such as adverse changes in economic conditions that impair the ability of borrowers to repay their loans, the underlying value of the collateral could prove less valuable than assumed and cash flows may be worse than expected; Park's ability to execute its business plan successfully and within the expected timeframe; general economic and financial market conditions, and weakening in the economy, specifically, the real estate market and credit market, either nationally or in the states in which Park and its subsidiaries do business, may be worse than expected which could decrease the demand for loan, deposit and other financial services and increase loan delinquencies and defaults; the effects of the Gulf of Mexico oil spill; changes in market rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our consolidated balance sheet; changes in consumer spending, borrowing and saving habits; our liquidity requirements could be adversely affected by changes in our assets and liabilities; competitive factors among financial institutions increase significantly, including product and pricing pressures and our ability to attract, develop and retain qualified bank professionals; the nature, timing and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and its subsidiaries, including changes in laws and regulations concerning taxes, accounting, banking, securities and other aspects of the financial services industry, specifically the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of fiscal and governmental policies of the United States federal government; demand for loans in the respective market areas served by Park and its subsidiaries, and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the Securities and Exchange Commission including those described in "Item 1A. Risk Factors" of Part I of Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and in "Item 1A. Risk Factors" of Part II of Park's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Park does not undertake, and specifically disclaims any obligation, to publicly release the result 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 is made, or reflect the occurrence of unanticipated events, except to the extent required by law.
CONTACT: Park National Corporation Media contacts: Bethany Lewis, Communications Specialist, 740.349.0421 firstname.lastname@example.org John Kozak, CFO, 740.349.3792