GlobeNewswire Inc | Oct 26, 2020 04:15PM EDT

October 26, 2020

NEWARK, Ohio, Oct. 26, 2020 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the third quarter and first nine months of 2020 (three and nine months ended September 30, 2020). Park's board of directors declared a quarterly cash dividend of $1.02 per common share, payable on December 10, 2020 to common shareholders of record as of November 20, 2020.

Parks net income for the third quarter of 2020 was $30.8 million, a 1.0 percent decrease from $31.1 million for the third quarter of 2019. Third quarter 2020 net income per diluted common share was $1.88, compared to $1.89 in the third quarter of 2019. Park's net income for the first nine months of 2020 was $82.7 million, a 5.0 percent increase from $78.8 million for the first nine months of 2019. Net income per diluted common share was $5.04 for the first nine months of 2020, compared to $4.84 for the first nine months of 2019.

Park's community-banking subsidiary, The Park National Bank, reported net income of $32.9 million for the third quarter of 2020, a 6.3 percent increase compared to $30.9 million for the same period of 2019. The bank reported net income of $89.5 million for the first nine months of 2020, compared to $87.0 million for the first nine months of 2019.

Our results through the spring and summer reflect the unwavering dedication our associates have to supporting customers in the most reliable and compassionate ways. Our service style has always included easy, direct access to local bankers, quick responses, and flexibility to fit unique situations. The excellent loan growth this year is absolutely connected to our bankers reputation for answering phones and providing solutions even on evenings and weekends, Park Chief Executive Office David Trautman explained.

As our communities adapted to pandemic conditions, local businesses needed swift access to funds as they adjusted and persevered. Families needed fair financing for vehicles and recreational equipment, and many needed guidance about low mortgage rates. Everyone needed and deserves service in the quickest, safest way possible. We are extremely proud of and grateful for our associates, in every corner of our organization, who continue to dedicate themselves to serving our communities and neighbors.

Headquartered in Newark, Ohio, Park National Corporation has $9.2 billion in total assets (as of September 30, 2020). Park's banking operations are conducted through its subsidiary The Park National Bank. Other Park subsidiaries are Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC.

Complete financial tables are listed below.

Category: Earnings

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995Park cautions that any forward-looking statements contained in this Current Report on Form 8-K 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 managements 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:

-- the ever-changing effects of the novel coronavirus (COVID-19) pandemic - - the duration, extent and severity of which are impossible to predict, including the possibility of further resurgence in the spread of COVID-19 - - on economies (local, national and international) and markets, and on our customers, counterparties, employees and third-party service providers, as well as the effects of various responses of governmental and nongovernmental authorities to the COVID-19 pandemic, including public health actions directed toward the containment of the COVID-19 pandemic, and the implementation of fiscal stimulus packages; -- the impact of future governmental and regulatory actions upon our participation in and execution of government programs related to the COVID-19 pandemic; -- Park's ability to execute our business plan successfully and within the expected timeframe as well as our ability to manage strategic initiatives in light of the impact of the COVID-19 pandemic and the various responses to the COVID-19 pandemic; -- general economic and financial market conditions, specifically in the real estate markets and the credit markets, either nationally or in the states in which Park and our subsidiaries do business, may experience a weaker recovery than anticipated, in addition to the continuing impact of the COVID-19 pandemic on our customers operations and financial condition, either of which may result in adverse impacts on the demand for loan, deposit and other financial services, delinquencies, defaults and counterparties' inability to meet credit and other obligations and the possible impairment of collectability of loans; -- factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers and the success of construction projects that we finance, including any loans acquired in acquisition transactions; -- the effect of monetary and other fiscal policies (including the impact of money supply and interest rate policies of the Federal Reserve Board) as well as disruption in the liquidity and functioning of U.S. financial markets, as a result of the COVID-19 pandemic and government policies implemented in response thereto, may adversely impact prepayment penalty income, mortgage banking income, income from fiduciary activities, the value of securities, deposits and other financial instruments, in addition to the loan demand and the performance of our loan portfolio, and the interest rate sensitivity of our consolidated balance sheet as well as reduce interest margins; -- changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions (including as a result of the COVID-19 pandemic and reactions thereto), legislative and regulatory initiatives (including those undertaken in response to the COVID-19 pandemic), or other factors may be different than anticipated; -- changes in unemployment levels in the states in which Park and our subsidiaries do business may be different than anticipated due to the continuing impact of the COVID-19 pandemic; -- changes in customers', suppliers', and other counterparties' performance and creditworthiness may be different than anticipated due to the continuing impact of the COVID-19 pandemic; -- the adequacy of our internal controls and risk management program in the event of changes in the market, economic, operational (including those which may result from more of our associates working remotely), asset/liability repricing, legal, compliance, strategic, cybersecurity, liquidity, credit and interest rate risks associated with Park's business; -- competitive pressures among financial services organizations could increase significantly, including product and pricing pressures (which could in turn impact our credit spreads), changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and our ability to attract, develop and retain qualified banking professionals; -- uncertainty regarding the nature, timing, cost and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and our subsidiaries, including major reform of the regulatory oversight structure of the financial services industry and changes in laws and regulations concerning taxes, FDIC insurance premium levels, pensions, bankruptcy, consumer protection, rent regulation and housing, financial accounting and reporting, environmental protection, insurance, bank products and services, bank and bank holding company capital and liquidity standards, fiduciary standards, securities and other aspects of the financial services industry, specifically the reforms provided for in the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act) and the Basel III regulatory capital reforms, as well as regulations already adopted and which may be adopted in the future by the relevant regulatory agencies, including the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board, to implement the provisions of the CARES Act, the provisions of the Dodd-Frank Act, and the Basel III regulatory capital reforms; -- the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board (the "FASB"), the SEC, the Public Company Accounting Oversight Board and other regulatory agencies, including the extent to which the new current expected credit loss ("CECL") accounting standard issued by the FASB in June 2016 and in accordance with the CARES Act, the adoption of which can be deferred by Park (with retrospective application as of January 1, 2020) until the earlier of: (1) the interim reporting period during which the national emergency concerning the COVID-19 outbreak terminates; or (2) December 31, 2020, may adversely affect Park's reported financial condition or results of operations; -- Park's assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, when adopted by Park, which may prove unreliable, inaccurate or not predictive of actual results; -- significant changes in the tax laws, which may adversely affect the fair values of net deferred tax assets and obligations of state and political subdivisions held in Park's investment securities portfolio; -- the impact of Park's ability to anticipate and respond to technological changes on Park's ability to respond to customer needs and meet competitive demands; -- operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Park and our subsidiaries are highly dependent; -- the ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; -- a failure in or breach of Park's operational or security systems or infrastructure, or those of our third-party vendors and other service providers, resulting in failures or disruptions in customer account management, general ledger, deposit, loan, or other systems, including as a result of cyber attacks; -- the existence or exacerbation of general geopolitical instability and uncertainty as well as the effect of trade policies (including the impact of potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations and changes in the relationship of the U.S. and its global trading partners); -- uncertainty regarding changes to the U.S. presidential administration and Congress and the impact thereof on the regulatory landscape, capital markets, and the response to and management of the COVID-19 pandemic; -- the impact on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government - backed debt, as well as issues surrounding the levels of U.S., European and Asian government debt and concerns regarding the growth rates and financial stability of certain sovereign governments, supranationals and financial institutions in Europe and Asia and the risk they may face difficulties servicing their sovereign debt; -- the uncertainty surrounding the actions to be taken to implement the referendum by United Kingdom voters to exit the European Union; -- our litigation and regulatory compliance exposure, including the costs and effects of any adverse developments in legal proceedings or other claims and the costs and effects of unfavorable resolution of regulatory and other governmental examinations or other inquiries; -- continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; -- the impact on Park's business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties; -- the impact of widespread natural and other disasters, pandemics (including the COVID-19 pandemic), dislocations, regional or national protests and civil unrest, terrorist activities or international hostilities on the economy and financial markets generally and on us or our counterparties specifically; -- any of the foregoing factors, or other cascading effects of the COVID-19 pandemic that are not currently foreseeable, could materially affect our business, including our customers' willingness to conduct banking transactions and their ability to pay on existing obligations; -- the effect of healthcare laws in the U.S. and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase our healthcare and other costs and negatively impact our operations and financial results; -- risk and uncertainties associated with Park's entry into new geographic markets with our recent acquisitions, including expected revenue synergies and cost savings from recent acquisitions not being fully realized or realized within the expected time frame; -- the discontinuation of the London Inter-Bank Offered Rate (LIBOR) and other reference rates which may result in increased expenses and litigation, and adversely impact the effectiveness of hedging strategies; -- and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the SEC 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, 2019 and in "Item 1A. Risk Factors" of Part II of Park's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020.

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 monthsended September 30, 2020, June 30, 2020, and September 30,2019 2020 2020 2019 Percent change vs.(in thousands,except share and 3rd QTR 2nd QTR 3rd QTR 2Q '20 3Q '19per share data)INCOME STATEMENT:Net interest $ 83,840 $ 81,186 $ 77,101 3.3 % 8.7 %incomeProvision for 13,836 12,224 1,967 13.2 % 603.4 %loan lossesOther income 36,558 30,964 28,136 18.1 % 29.9 %Other expense 69,859 64,799 65,738 7.8 % 6.3 %Income before $ 36,703 $ 35,127 $ 37,532 4.5 % (2.2 ) %income taxesIncome taxes 5,857 5,622 6,386 4.2 % (8.3 ) %Net income $ 30,846 $ 29,505 $ 31,146 4.5 % (1.0 ) % MARKET DATA: Earnings percommon share - $ 1.89 $ 1.81 $ 1.90 4.4 % (0.5 ) %basic (a)Earnings percommon share - 1.88 1.80 1.89 4.4 % (0.5 ) %diluted (a)Cash dividendsdeclared per 1.02 1.02 1.01 ? % 1.0 %common shareBook value percommon share at 62.39 61.46 58.54 1.5 % 6.6 %period endMarket price percommon share at 81.96 70.38 94.81 16.5 % (13.6 ) %period endMarketcapitalization 1,336,011 1,146,942 1,548,527 16.5 % (13.7 ) %at period end Weighted averagecommon shares - 16,300,720 16,296,427 16,382,798 ? % (0.5 ) %basic (b)Weighted averagecommon shares - 16,393,792 16,375,434 16,475,741 0.1 % (0.5 ) %diluted (b)Common sharesoutstanding at 16,300,763 16,296,425 16,332,951 ? % (0.2 ) %period end PERFORMANCERATIOS: (annualized)Return onaverage assets 1.28 % 1.26 % 1.41 % 1.6 % (9.2 ) %(a)(b)Return onaverage 12.03 % 11.89 % 13.07 % 1.2 % (8.0 ) %shareholders'equity (a)(b)Yield on loans 4.54 % 4.63 % 5.25 % (1.9 ) % (13.5 ) %Yield oninvestment 2.35 % 2.76 % 2.72 % (14.9 ) % (13.6 ) %securitiesYield on moneymarket 0.11 % 0.10 % 2.43 % 10.0 % (95.5 ) %instrumentsYield oninterest earning 4.12 % 4.14 % 4.73 % (0.5 ) % (12.9 ) %assetsCost of interest 0.26 % 0.36 % 1.08 % (27.8 ) % (75.9 ) %bearing depositsCost of 1.63 % 1.33 % 2.25 % 22.6 % (27.6 ) %borrowingsCost of payinginterest bearing 0.39 % 0.43 % 1.19 % (9.3 ) % (67.2 ) %liabilitiesNet interest 3.85 % 3.84 % 3.86 % 0.3 % (0.3 ) %margin (g)Efficiency ratio 57.69 % 57.41 % 62.03 % 0.5 % (7.0 ) %(g) OTHER RATIOS (NON-GAAP):Tangible bookvalue per share $ 52.00 $ 51.04 $ 47.92 1.9 % 8.5 %(d) Note:Explanations forfootnotes (a) -(k) are includedat the end of the financialtables in the"FinancialReconciliations"section. PARK NATIONAL CORPORATIONFinancial Highlights (continued)As of or for the three monthsended September 30, 2020, June 30, 2020, and September 30,2019 Percent change vs.(in thousands, September 30, June 30, September 30, 2Q '20 3Q '19except ratios) 2020 2020 2019BALANCE SHEET: Investment $ 1,097,598 $ 1,153,186 $ 1,328,930 (4.8 ) % (17.4 ) %securitiesLoans 7,278,546 7,204,445 6,403,647 1.0 % 13.7 %Allowance for 87,038 73,476 55,853 18.5 % 55.8 %loan lossesGoodwill andother intangible 169,380 169,905 173,489 (0.3 ) % (2.4 ) %assetsOther realestate owned 836 1,356 3,779 (38.3 ) % (77.9 ) %(OREO)Total assets 9,240,006 9,712,994 8,723,610 (4.9 ) % 5.9 %Total deposits 7,475,829 8,161,900 7,168,259 (8.4 ) % 4.3 %Borrowings 643,103 444,410 498,338 44.7 % 29.0 %Totalshareholders' 1,016,996 1,001,594 956,140 1.5 % 6.4 %equityTangible equity 847,616 831,689 782,651 1.9 % 8.3 %(d)Totalnonperforming 148,442 126,044 111,184 17.8 % 33.5 %loansTotalnonperforming 152,670 130,999 118,561 16.5 % 28.8 %assets ASSET QUALITY RATIOS:Loans as a % ofperiod end total 78.77 % 74.17 % 73.41 % 6.2 % 7.3 %assetsTotalnonperforming 2.04 % 1.75 % 1.74 % 16.6 % 17.2 %loans as a % ofperiod end loansTotalnonperformingassets as a % ofperiod end loans 2.10 % 1.82 % 1.85 % 15.4 % 13.5 %+ OREO+ othernonperformingassetsAllowance forloan losses as a 1.20 % 1.02 % 0.87 % 17.6 % 37.9 %% of period endloansNet loan $ 274 $ 251 $ 117 9.2 % 134.2 %charge-offsAnnualized netloan charge-offsas a % of 0.02 % 0.01 % 0.01 % 100.0 % 100.0 %average loans(b) CAPITAL & LIQUIDITY:Totalshareholders' 11.01 % 10.31 % 10.96 % 6.8 % 0.5 %equity / Periodend total assetsTangible equity(d) / Tangible 9.34 % 8.72 % 9.15 % 7.1 % 2.1 %assets (f)Averageshareholders' 10.67 % 10.61 % 10.76 % 0.6 % (0.8 ) %equity / Averageassets (b)Averageshareholders' 14.08 % 14.30 % 14.83 % (1.5 ) % (5.1 ) %equity / Averageloans (b)Average loans /Average deposits 92.02 % 88.59 % 88.63 % 3.9 % 3.8 %(b) Note: Explanations for footnotes (a) - (k) are included atthe end of the financial tables in the "Financial Reconciliations" section.

PARK NATIONAL CORPORATIONFinancial HighlightsNine months ended September 30, 2020 and September 30, 2019 2020 2019 (in thousands, except share and per share Nine months Nine months Percentdata and ratios) ended ended change September 30 September 30 vs '19INCOME STATEMENT: Net interest income $ 241,309 $ 220,728 9.3 %Provision for loan losses 31,213 6,384 388.9 %Other income 90,008 72,969 23.4 %Other expense 200,934 192,757 4.2 %Income before income taxes $ 99,170 $ 94,556 4.9 %Income taxes 16,447 15,792 4.1 %Net income $ 82,723 $ 78,764 5.0 % MARKET DATA: Earnings per common share - basic (a) $ 5.07 $ 4.86 4.3 %Earnings per common share - diluted (a) 5.04 4.84 4.1 %Cash dividends declared per common share 3.26 3.23 0.9 % Weighted average common shares - basic 16,300,250 16,198,294 0.6 %(b)Weighted average common shares - diluted 16,398,350 16,287,695 0.7 %(b) PERFORMANCE RATIOS: (annualized) Return on average assets (a)(b) 1.20 % 1.25 % (4.0 ) %Return on average shareholders' equity 11.05 % 11.61 % (4.8 ) %(a)(b)Yield on loans 4.72 % 5.21 % (9.4 ) %Yield on investment securities 2.62 % 2.77 % (5.4 ) %Yield on money market instruments 0.31 % 2.53 % (87.7 ) %Yield on interest earning assets 4.27 % 4.72 % (9.5 ) %Cost of interest bearing deposits 0.47 % 1.03 % (54.4 ) %Cost of borrowings 1.66 % 2.13 % (22.1 ) %Cost of paying interest bearing 0.57 % 1.15 % (50.4 ) %liabilitiesNet interest margin (g) 3.88 % 3.88 % ? %Efficiency ratio (g) 60.26 % 65.14 % (7.5 ) % ASSET QUALITY RATIOS: Net loan charge-offs $ 854 $ 2,043 (58.2 ) %Annualized net loan charge-offs as a % of 0.02 % 0.04 % (50.0 ) %average loans (b) CAPITAL & LIQUIDITY: Average shareholders' equity / Average 10.85 % 10.80 % 0.5 %assets (b)Average shareholders' equity / Average 14.49 % 14.79 % (2.0 ) %loans (b)Average loans / Average deposits (b) 90.19 % 90.10 % 0.1 % Note: Explanations for footnotes (a) -(k) are included at the end of the financial tables in the "FinancialReconciliations" section.

PARK NATIONAL CORPORATION Consolidated Statements of Income Three Months Ended Nine Months Ended September 30, September 30,(in thousands,except share and 2020 2019 2020 2019per share data) Interest income: Interest and $ 82,617 $ 84,213 $ 243,459 $ 238,687 fees on loansInterest on: Obligations ofU.S. Government, its agenciesand othersecurities - 4,841 6,326 15,398 20,240 taxableObligations ofstates andpolitical 2,045 2,225 6,396 6,750 subdivisions -tax-exemptOther interest 63 1,825 667 2,994 income

Total interest 89,566 94,589 265,920 268,671 income Interest expense:Interest on deposits:Demand and 803 9,649 8,652 25,553 savings depositsTime deposits 2,662 4,694 10,293 12,828 Interest on 2,261 3,145 5,666 9,562 borrowings Total 5,726 17,488 24,611 47,943 interest expense

Net interest 83,840 77,101 241,309 220,728 income Provision for 13,836 1,967 31,213 6,384 loan losses

Net interestincome after 70,004 75,134 210,096 214,344 provision forloan losses Other income 36,558 28,136 90,008 72,969 Other expense 69,859 65,738 200,934 192,757

Income before 36,703 37,532 99,170 94,556 income taxes Income taxes 5,857 6,386 16,447 15,792 $ 30,846 $ 31,146 $ 82,723 $ 78,764 Net income Per common share:

Net income - $ 1.89 $ 1.90 $ 5.07 $ 4.86 basic

Net income - $ 1.88 $ 1.89 $ 5.04 $ 4.84 diluted

Weighted average 16,300,720 16,382,798 16,300,250 16,198,294 shares - basic

Weighted average 16,393,792 16,475,741 16,398,350 16,287,695 shares - diluted

Cash dividends $ 1.02 $ 1.01 $ 3.26 $ 3.23 declared

PARK NATIONAL CORPORATIONConsolidated Balance Sheets (in thousands, except share data) September 30, December 31, 2020 2019 Assets Cash and due from banks $ 110,774 $ 135,567 Money market instruments 135,935 24,389 Investment securities 1,097,598 1,279,507 Loans 7,278,546 6,501,404 Allowance for loan losses (87,038 ) (56,679 ) Loans, net 7,191,508 6,444,725 Bank premises and equipment, net 85,287 73,322 Goodwill and other intangible assets 169,380 171,118 Other real estate owned 836 4,029 Other assets 448,688 425,720 Total assets $ 9,240,006 $ 8,558,377 Liabilities and Shareholders' Equity Deposits: Noninterest bearing $ 2,579,335 $ 1,959,935 Interest bearing 4,896,494 5,092,677 Total deposits 7,475,829 7,052,612 Borrowings 643,103 438,157 Other liabilities 104,078 98,594 Total liabilities $ 8,223,010 $ 7,589,363 Shareholders' Equity: Preferred shares (200,000 shares authorized;no shares outstanding at September 30, 2020 $ ? $ ? and December 31, 2019)Common shares (No par value; 20,000,000 sharesauthorized;17,623,179 shares issued at 458,440 459,389 September 30, 2020 and 17,623,199 sharesissued at December 31, 2019)Accumulated other comprehensive income (loss), 14,200 (9,589 ) net of taxesRetained earnings 676,465 646,847 Treasury shares (1,322,416 shares at September30, 2020 and 1,276,757 shares at December 31, (132,109 ) (127,633 ) 2019)Total shareholders' equity $ 1,016,996 $ 969,014 Total liabilities and shareholders' equity $ 9,240,006 $ 8,558,377

PARK NATIONAL CORPORATION Consolidated Average Balance Sheets Three Months Ended Nine Months Ended Sept 30 Sept 30(in 2020 2019 2020 2019thousands) Assets Cash and due $ 121,973 $ 147,156 $ 129,436 $ 130,799 from banksMoney market 223,563 298,441 286,909 158,395 instrumentsInvestment 1,330,520 1,339,292 1,264,381 1,380,629 securitiesLoans 7,247,021 6,371,323 6,904,900 6,133,386 Allowance for (74,718 ) (54,867 ) (64,942 ) (53,711 ) loan lossesLoans, net 7,172,303 6,316,456 6,839,958 6,079,675 Bank premisesand 83,609 73,077 79,557 68,437 equipment,netGoodwill andother 169,726 174,027 170,311 153,182 intangibleassetsOther real 1,299 3,845 2,616 4,132 estate ownedOther assets 454,689 433,398 443,327 426,438 Total assets $ 9,557,682 $ 8,785,692 $ 9,216,495 $ 8,401,687 Liabilitiesand Shareholders'Equity Deposits: Noninterest $ 2,565,417 $ 1,901,024 $ 2,306,355 $ 1,840,153 bearingInterest 5,309,718 5,287,851 5,350,009 4,967,106 bearingTotal 7,875,135 7,188,875 7,656,364 6,807,259 depositsBorrowings 552,452 553,595 455,127 599,223 Other 109,856 98,077 104,763 87,984 liabilitiesTotal $ 8,537,443 $ 7,840,547 $ 8,216,254 $ 7,494,466 liabilities Shareholders' Equity:Preferred $ ? $ ? $ ? $ ? sharesCommon shares 457,571 457,029 457,953 424,213 Accumulatedothercomprehensive 15,400 (26,010 ) 8,712 (36,383 ) income(loss), netof taxesRetained 679,519 638,639 665,808 628,463 earningsTreasury (132,251 ) (124,513 ) (132,232 ) (109,072 ) sharesTotalshareholders' $ 1,020,239 $ 945,145 $ 1,000,241 $ 907,221 equityTotalliabilitiesand $ 9,557,682 $ 8,785,692 $ 9,216,495 $ 8,401,687 shareholders'equity

PARK NATIONAL CORPORATIONConsolidated Statements of Income - Linked Quarters 2020 2020 2020 2019 2019(in thousands,except per 3rd QTR 2nd QTR 1st QTR 4th QTR 3rd QTRshare data) Interest income:Interest and $ 82,617 $ 80,155 $ 80,687 $ 82,698 $ 84,213 fees on loansInterest on: Obligations ofU.S.Government,its agencies 4,841 5,026 5,531 5,973 6,326 and othersecurities -taxableObligations ofstates andpolitical 2,045 2,151 2,200 2,205 2,225 subdivisions -tax-exemptOther interest 63 113 491 953 1,825 incomeTotal interest 89,566 87,445 88,909 91,829 94,589 income Interest expense:Interest on deposits:Demand andsavings 803 1,507 6,342 7,795 9,649 depositsTime deposits 2,662 3,346 4,285 4,666 4,694 Interest on 2,261 1,406 1,999 2,359 3,145 borrowingsTotal interest 5,726 6,259 12,626 14,820 17,488 expense Net interest 83,840 81,186 76,283 77,009 77,101 income Provision for(recovery of) 13,836 12,224 5,153 (213 ) 1,967 loan losses Net interestincome afterprovision for 70,004 68,962 71,130 77,222 75,134 (recovery of)loan losses Other income 36,558 30,964 22,486 24,224 28,136 Other expense 69,859 64,799 66,276 71,231 65,738 Income before 36,703 35,127 27,340 30,215 37,532 income taxes Income taxes 5,857 5,622 4,968 6,279 6,386 Net income $ 30,846 $ 29,505 $ 22,372 $ 23,936 $ 31,146 Per common share:Net income- $ 1.89 $ 1.81 $ 1.37 $ 1.46 $ 1.90 basicNet income- $ 1.88 $ 1.80 $ 1.36 $ 1.45 $ 1.89 diluted

PARK NATIONAL CORPORATIONDetail of other income and other expense - Linked Quarters 2020 2020 2020 2019 2019(in 3rd QTR 2nd QTR 1st QTR 4th QTR 3rd QTRthousands) Other income: Income fromfiduciary $ 7,335 $ 6,793 $ 7,113 $ 7,268 $ 6,842 activitiesServicecharges on 2,118 1,676 2,528 2,757 2,864 depositaccountsOther service 13,047 8,758 3,766 4,382 4,260 incomeDebit card 5,853 5,560 4,960 5,341 5,313 fee incomeBank ownedlife 1,192 1,179 1,248 1,158 1,107 insuranceincomeATM fees 491 438 412 446 482 Gain (loss)on the sale 569 841 (196 ) 2 (53 ) of OREO, netNet (loss)gain on thesale of (27 ) 3,313 ? ? 186 investmentsecuritiesGain (loss)on equity 1,201 (977 ) (973 ) (191 ) 3,335 securities,netOthercomponents ofnet periodic 1,988 1,988 1,988 1,183 1,183 benefitincomeMiscellaneous 2,791 1,395 1,640 1,878 2,617 Total other $ 36,558 $ 30,964 $ 22,486 $ 24,224 $ 28,136 income Other expense:Salaries $ 31,632 $ 30,699 $ 28,429 $ 30,903 $ 30,713 Employee 10,676 9,080 10,043 8,973 10,389 benefitsOccupancy 3,835 3,256 3,480 3,355 3,226 expenseFurniture andequipment 4,687 4,850 4,319 4,319 4,177 expenseDataprocessing 3,275 2,577 2,492 2,777 2,935 feesProfessionalfees and 7,977 6,901 7,066 10,503 6,702 servicesMarketing 1,454 1,136 1,486 1,468 1,604 Insurance 1,541 1,477 1,550 317 276 Communication 958 874 1,155 1,256 1,387 State tax 1,125 1,116 1,145 1,024 746 expenseAmortizationof intangible 525 607 606 623 741 assetsMiscellaneous 2,174 2,226 4,505 5,713 2,842 Total other $ 69,859 $ 64,799 $ 66,276 $ 71,231 $ 65,738 expense

PARK NATIONAL CORPORATIONAsset Quality Information Year ended December 31,(in thousands, September 30, June 30, 2020 March 31, 2019 2018 2017 2016except ratios) 2020 2020 Allowance for loan losses:Allowance forloan losses, $ 73,476 $ 61,503 $ 56,679 $ 51,512 $ 49,988 $ 50,624 $ 56,494 beginning ofperiodCharge-offs 1,529 2,130 2,685 11,177 13,552 19,403 20,799 Recoveries 1,255 1,879 2,356 10,173 7,131 10,210 20,030 Net 274 251 329 1,004 6,421 9,193 769 charge-offsProvision for(recovery of) 13,836 12,224 5,153 6,171 7,945 8,557 (5,101 ) loan lossesAllowance forloan losses, $ 87,038 $ 73,476 $ 61,503 $ 56,679 $ 51,512 $ 49,988 $ 50,624 end of period Generalreserve trends:Allowance forloan losses, $ 87,038 $ 73,476 $ 61,503 $ 56,679 $ 51,512 $ 49,988 $ 50,624 end of periodAllowance onpurchasedcredit 103 106 119 268 ? ? ? impaired("PCI") loansAllowance onpurchased 371 25 ? ? ? ? ? loansSpecific 8,666 5,808 5,531 5,230 2,273 684 548 reservesGeneralreserves on $ 77,898 $ 67,537 $ 55,853 $ 51,181 $ 49,239 $ 49,304 $ 50,076 originatedloans Total loans $ 7,278,546 $ 7,204,445 $ 6,522,519 $ 6,501,404 $ 5,692,132 $ 5,372,483 $ 5,271,857 PCI loans 11,877 12,569 13,765 14,331 3,943 ? ? Purchased 393,752 440,803 489,843 548,436 225,029 ? ? loansImpairedcommercial 116,138 91,724 85,646 77,459 48,135 56,545 70,415 loansOriginatedloansexcluding $ 6,762,779 $ 6,659,349 $ 5,933,265 $ 5,861,178 $ 5,415,025 $ 5,315,938 $ 5,201,442 impairedcommercialloans Asset Quality Ratios:Netcharge-offs asa % of average 0.02 % 0.01 % 0.02 % 0.02 % 0.12 % 0.17 % 0.02 %loans(annualized)Allowance forloan losses as 1.20 % 1.02 % 0.94 % 0.87 % 0.90 % 0.93 % 0.96 %a % of periodend loansAllowance forloan losses onoriginatedloans as % of 1.36 % 1.17 % N.A. N.A. N.A. N.A. N.A.originatedtotal loans(excluding PPPloans) (k)Generalreserve as a %of originatedtotal loans 1.15 % 1.01 % 0.94 % 0.87 % 0.91 % 0.93 % 0.96 %less impairedcommercialloansGeneralreserves as a% oforiginatedtotal loans 1.24 % 1.10 % N.A. N.A. N.A. N.A. N.A.less impairedcommercialloans(excluding PPPloans) (k) Nonperforming assets:Nonaccrual $ 123,050 $ 100,406 $ 90,354 $ 90,080 $ 67,954 $ 72,056 $ 87,822 loansAccruingtroubled debt 23,774 23,948 27,168 21,215 15,173 20,111 18,175 restructuringsLoans past due90 days or 1,618 1,690 1,789 2,658 2,243 1,792 2,086 moreTotalnonperforming $ 148,442 $ 126,044 $ 119,311 $ 113,953 $ 85,370 $ 93,959 $ 108,083 loansOther realestate owned - 242 427 2,671 3,100 2,788 6,524 6,025 Park NationalBankOther realestate owned - 594 929 929 929 1,515 7,666 7,901 SEPHOthernonperforming 3,392 3,599 3,599 3,599 3,464 4,849 ? assets - ParkNational BankTotalnonperforming $ 152,670 $ 130,999 $ 126,510 $ 121,581 $ 93,137 $ 112,998 $ 122,009 assetsPercentage ofnonaccrualloans to 1.69 % 1.39 % 1.39 % 1.39 % 1.19 % 1.34 % 1.67 %period endloansPercentage ofnonperformingloans to 2.04 % 1.75 % 1.83 % 1.75 % 1.50 % 1.75 % 2.05 %period endloansPercentage ofnonperformingassets to 2.10 % 1.82 % 1.94 % 1.87 % 1.64 % 2.10 % 2.31 %period endloansPercentage ofnonperformingassets to 1.65 % 1.35 % 1.45 % 1.42 % 1.19 % 1.50 % 1.63 %period endtotal assets Note: Explanations for footnotes (a) - (k) are included at the end of thefinancial tables in the "Financial Reconciliations" section.

PARK NATIONAL CORPORATIONAsset Quality Information (continued) Year ended December 31,(inthousands, September June 30, March 31, 2019 2018 2017 2016except 30, 2020 2020 2020ratios) Newnonaccrual loaninformation:Nonaccrualloans, $ 100,406 $ 90,354 $ 90,080 $ 67,954 $ 72,056 $ 87,822 $ 95,887 beginning ofperiodNewnonaccrual 38,631 21,995 21,651 81,009 76,611 58,753 74,786 loansResolvednonaccrual 15,987 11,943 21,377 58,883 80,713 74,519 82,851 loansNonaccrualloans, end $ 123,050 $ 100,406 $ 90,354 $ 90,080 $ 67,954 $ 72,056 $ 87,822 of period Impairedcommercialloanportfolio information(periodend):Unpaidprincipal $ 116,701 $ 92,374 $ 86,379 $ 78,178 $ 59,381 $ 66,585 $ 95,358 balancePrior 563 650 733 719 11,246 10,040 24,943 charge-offsRemainingprincipal 116,138 91,724 85,646 77,459 48,135 56,545 70,415 balanceSpecific 8,666 5,808 5,531 5,230 2,273 684 548 reservesBook value,after $ 107,472 $ 85,916 $ 80,115 $ 72,229 $ 45,862 $ 55,861 $ 69,867 specificreserves

PARK NATIONAL CORPORATION Financial ReconciliationsNON-GAAP RECONCILIATIONS THREE MONTHS ENDED NINE MONTHS ENDED(in thousands, September Septemberexcept share 30, June 30, 30, September 30, September 30,and per share 2020 2020 2019 2020 2019data)Net interest $ 83,840 $ 81,186 $ 77,101 $ 241,309 $ 220,728 incomeless purchaseaccountingaccretionrelated to 1,071 1,301 1,967 3,750 3,839 NewDominion andCarolinaAllianceacquisitionsless interestincome onformer Vision 8 266 ? 351 7 BankrelationshipsNet interestincome - $ 82,761 $ 79,619 $ 75,134 $ 237,208 $ 216,882 adjusted Provision for $ 13,836 $ 12,224 $ 1,967 $ 31,213 $ 6,384 loan lossesless recoverieson former (37 ) (685 ) (575 ) (1,486 ) (740 ) Vision BankrelationshipsProvision forloan losses - $ 13,873 $ 12,909 $ 2,542 $ 32,699 $ 7,124 adjusted Other income $ 36,558 $ 30,964 $ 28,136 $ 90,008 $ 72,969 less net gain(loss) on saleof former 371 837 ? 1,208 (139 ) Vision BankOREO propertiesless rebrandinginitiative ? (274 ) ? (274 ) ? relatedexpensesless net (loss)gain on thesale of debtsecurities in (27 ) 3,313 186 3,286 (421 ) the ordinarycourse ofbusinessOther income - $ 36,214 $ 27,088 $ 27,950 $ 85,788 $ 73,529 adjusted Other expense $ 69,859 $ 64,799 $ 65,738 $ 200,934 $ 192,757 lessmerger-relatedexpensesrelated to 163 214 658 620 6,992 NewDominion andCarolinaAllianceacquisitionsless coredepositintangibleamortizationrelated to 525 607 741 1,738 1,732 NewDominion andCarolinaAllianceacquisitionsless FDICassessment ? ? (1,057 ) ? (1,057 ) creditless managementand consultingexpensesrelated tocollection of 232 ? ? 232 ? payments onformer VisionBank loanrelationshipsless FHLBprepayment ? ? 120 1,793 120 penaltyless rebrandinginitiative 429 138 139 837 341 relatedexpensesless COVID-19related 744 1,878 ? 2,884 ? expenses (j)Other expense - $ 67,766 $ 61,962 $ 65,137 $ 192,830 $ 184,629 adjusted Tax effect ofadjustments tonet income $ 133 $ (691 ) $ (447 ) $ (358 ) $ 861 identifiedabove (i) Net income - $ 30,846 $ 29,505 $ 31,146 $ 82,723 $ 78,764 reportedNet income - $ 31,346 $ 26,905 $ 29,446 $ 81,378 $ 82,005 adjusted Diluted EPS $ 1.88 $ 1.80 $ 1.89 $ 5.04 $ 4.84 Diluted EPS, $ 1.91 $ 1.64 $ 1.79 $ 4.96 $ 5.03 adjusted (h) Annualizedreturn on 1.28 % 1.26 % 1.41 % 1.20 % 1.25 %average assets(a)(b)Annualizedreturn onaverage assets, 1.30 % 1.15 % 1.33 % 1.18 % 1.30 %adjusted (a)(b)(h) Annualizedreturn onaverage 1.31 % 1.28 % 1.43 % 1.22 % 1.28 %tangible assets(a)(b)(e)Annualizedreturn onaveragetangible 1.33 % 1.17 % 1.36 % 1.20 % 1.33 %assets,adjusted (a)(b)(e)(h) Annualizedreturn onaverage 12.03 % 11.89 % 13.07 % 11.05 % 11.61 %shareholders'equity (a)(b)Annualizedreturn onaverageshareholders' 12.22 % 10.84 % 12.37 % 10.87 % 12.09 %equity,adjusted (a)(b)(h) Annualizedreturn onaverage 14.43 % 14.33 % 16.02 % 13.31 % 13.97 %tangible equity(a)(b)(c)Annualizedreturn onaveragetangible 14.66 % 13.07 % 15.16 % 13.10 % 14.54 %equity,adjusted (a)(b)(c)(h) Efficiency 57.69 % 57.41 % 62.03 % 60.26 % 65.14 %ratio (g)Efficiencyratio, adjusted 56.62 % 57.68 % 62.74 % 59.30 % 63.09 %(g)(h) Annualized netinterest margin 3.85 % 3.84 % 3.86 % 3.88 % 3.88 %(g)Annualized netinterest 3.80 % 3.77 % 3.76 % 3.81 % 3.81 %margin,adjusted (g)(h)

PARK NATIONAL CORPORATION FinancialReconciliations (continued) (a) Reported measure uses net income(b) Averages are for the three months ended September 30, 2020, June 30,2020, and September 30, 2019 and the nine months ended September 30, 2020 andSeptember 30, 2019.(c) Net income for each period divided by average tangible equity during theperiod.Average tangible equity equals average shareholders' equity during theapplicable period less average goodwill and other intangible assets during theapplicable period. RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY: THREE MONTHS ENDED NINE MONTHS ENDED September 30, June 30, 2020 September 30, September 30, September 30, 2020 2019 2020 2019AVERAGESHAREHOLDERS' $ 1,020,239 $ 998,288 $ 945,145 $ 1,000,241 $ 907,221 EQUITYLess: Averagegoodwill andother 169,726 170,303 174,027 170,311 153,182 intangibleassetsAVERAGE $ 850,513 $ 827,985 $ 771,118 $ 829,930 $ 754,039 TANGIBLE EQUITY (d) Tangible equity divided by common shares outstanding at period end.Tangible equity equals total shareholders' equity less goodwill and otherintangible assets, in each case at the end of the period. RECONCILIATION OF TOTAL SHAREHOLDERS' EQUITY TO TANGIBLE EQUITY: September 30, June 30, 2020 September 30, 2020 2019TOTALSHAREHOLDERS' $ 1,016,996 $ 1,001,594 $ 956,140 EQUITYLess: Goodwilland other 169,380 169,905 173,489 intangibleassetsTANGIBLE EQUITY $ 847,616 $ 831,689 $ 782,651 (e) Net income for each period divided by average tangible assets during theperiod.Average tangible assets equals average assets less average goodwilland other intangible assets, in each case during the applicable period. RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS THREE MONTHS ENDED NINE MONTHS ENDED September 30, June 30, 2020 September 30, September 30, September 30, 2020 2019 2020 2019AVERAGE ASSETS $ 9,557,682 $ 9,408,265 $ 8,785,692 $ 9,216,495 $ 8,401,687 Less: Averagegoodwill andother 169,726 170,303 174,027 170,311 153,182 intangibleassetsAVERAGE $ 9,387,956 $ 9,237,962 $ 8,611,665 $ 9,046,184 $ 8,248,505 TANGIBLE ASSETS (f) Tangible equity divided by tangible assets. Tangible assets equals totalassets less goodwill and other intangible assets, in each case at the end ofthe period. RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS: September 30, June 30, 2020 September 30, 2020 2019TOTAL ASSETS $ 9,240,006 $ 9,712,994 $ 8,723,610 Less: Goodwilland other 169,380 169,905 173,489 intangibleassetsTANGIBLE ASSETS $ 9,070,626 $ 9,543,089 $ 8,550,121 (g) Efficiency ratio is calculated by dividing total other expense by the sumof fully taxable equivalent net interest income and other income. Fully taxableequivalent net interest income reconciliation is shown assuming a 21% corporatefederal income tax rate. Additionally, net interest margin is calculated on afully taxable equivalent basis by dividing fully taxable equivalent netinterest income by average interest earning assets. RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTERESTINCOME THREE MONTHS ENDED NINE MONTHS ENDED September 30, June 30, 2020 September 30, September 30, September 30, 2020 2019 2020 2019Interest income $ 89,566 $ 87,445 $ 94,589 $ 265,920 $ 268,671 Fully taxableequivalent 706 723 744 2,154 2,230 adjustmentFully taxableequivalent $ 90,272 $ 88,168 $ 95,333 $ 268,074 $ 270,901 interest incomeInterest 5,726 6,259 17,488 24,611 47,943 expenseFully taxableequivalent net $ 84,546 $ 81,909 $ 77,845 $ 243,463 $ 222,958 interest income (h) Adjustments to net income for each period presented are detailed in thenon-GAAP reconciliations of net interest income, provision for loan losses,other income and other expense above.(i) The tax effect of adjustments to net income was calculated assuming a 21% corporate federal income tax rate.(j) COVID-19 related expenses includecalamity pay and special one-time bonuses to certain associates.(k) Excludes $542.8 million and $543.1 million of PPP loans at September 30,2020 and June 30, 2020, respectively.

Media contact: Bethany Lewis, 740.349.0421, bethany.lewis@parknationalbank.comInvestor contact: Brady Burt, 740.322.6844, brady.burt@parknationalbank.comPark National Corporation, 50 N. Third Street, Newark, Ohio 43055