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

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 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 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 QTR			1st QTR			2nd QTR			1Q '25		2Q '24
INCOME 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 CORPORATION
Financial 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, 2025			March 31, 2025			June 30, 2024			1Q '25		2Q '24
BALANCE 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 CORPORATION
Financial Highlights
Six months ended June 30, 2025 and June 30, 2024

		2025			2024
*(in thousands, except common share and per common share data and ratios)*	Six months ended June 30			Six months ended June 30			Percent change ’25 vs '24
INCOME 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 CORPORATION
Consolidated 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	$	226,529
Interest on debt securities:
Taxable		6,693		10,950		13,823		22,849
Tax-exempt		1,503		1,382		2,772		2,792
Other 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		40,225
Time deposits		5,821		7,525		12,591		14,863
Interest 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, 2025			December 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

	2025		2025		2024		2024		2024
*(in thousands, except per share data)*	2nd QTR		1st QTR		4th QTR		3rd QTR		2nd QTR

Interest income:
Interest and fees on loans	$	125,543	$	120,648	$	120,870	$	120,203	$	115,318
Interest on debt securities:
Taxable		6,693		7,130		8,641		10,228		10,950
Tax-exempt		1,503		1,269		1,351		1,381		1,382
Other interest income		2,757		3,153		2,751		1,996		1,254
Total 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		20,370
Time deposits		5,821		6,770		7,658		7,073		7,525
Interest on borrowings		2,629		2,617		2,708		2,859		3,172
Total 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	$	2.44
Net income - diluted	$	2.97	$	2.60	$	2.37	$	2.35	$	2.42

PARK NATIONAL CORPORATION
Detail of other income and other expense - Linked Quarters

	2025		2025			2024			2024		2024
(in thousands)	2nd QTR		1st QTR			4th QTR			3rd QTR		2nd 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, 2025			March 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, 2025		March 31, 2025		2024		2023		2022		2021		2020

New nonaccrual loan information:
Nonaccrual loans, beginning of period	$	61,929	$	68,178	$	60,259	$	79,696	$	72,722	$	117,368	$	90,080
New nonaccrual loans		13,898		14,767		65,535		48,280		64,918		38,478		103,386
Resolved nonaccrual loans		12,747		21,016		57,616		67,717		57,944		83,124		76,098
Nonaccrual 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	$	100,306
Prior charge-offs		3,501		3,416		5,009		2,349		1,775		624		655
Remaining principal balance		46,547		47,718		53,149		45,215		66,864		56,985		99,651
Specific reserves		774		1,044		1,299		4,983		3,566		1,574		5,390
Book 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 CORPORATION
Financial Reconciliations
NON-GAAP RECONCILIATIONS
	THREE MONTHS ENDED									SIX MONTHS ENDED
*(in thousands, except share and per share data)*	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net 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 CORPORATION
Financial 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, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
AVERAGE SHAREHOLDERS' EQUITY	$	1,290,041	$	1,270,259	$	1,171,347	$	1,280,205	$	1,164,765
Less: Average goodwill and other intangible assets		162,664		162,938		163,816		162,800		163,977
AVERAGE 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, 2025		March 31, 2025		June 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, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
AVERAGE ASSETS	$	10,078,461	$	10,045,607	$	9,811,326	$	10,062,125	$	9,837,352
Less: Average goodwill and other intangible assets		162,664		162,938		163,816		162,800		163,977
AVERAGE 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, 2025		March 31, 2025		June 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, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Interest income	$	136,496	$	132,200	$	128,904	$	268,696	$	255,544
Fully taxable equivalent adjustment		675		607		605		1,282		1,221
Fully taxable equivalent interest income	$	137,171	$	132,807	$	129,509	$	269,978	$	256,765
Interest expense		27,505		27,823		31,067		55,328		62,084
Fully 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 CORPORATION
Financial Reconciliations (continued)

RECONCILIATION OF PRE-TAX, PRE-PROVISION NET INCOME
	THREE MONTHS ENDED						SIX MONTHS ENDED
	June 30, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Net income	$	48,119	$	42,157	$	39,369	$	90,276	$	74,573
Plus: Income taxes		11,228		9,046		8,960		20,274		16,171
Plus: Provision for credit losses		2,853		756		3,113		3,609		5,293
Pre-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.

Media contact: Michelle Hamilton, 740-349-6014, media@parknationalbank.com

Investor contact: Brady Burt, 740-322-6844, investor@parknationalbank.com

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