GlobeNewswire Inc | Jan 25, 2021 04:15PM EST

January 25, 2021

NEWARK, Ohio, Jan. 25, 2021 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the fourth quarter and full year of 2020 (three and twelve months ended December 31, 2020). The board of directors increased Parks quarterly cash dividend, declaring it as $1.03 per common share. The board also declared a special cash dividend of $0.20 per common share, payable on March 10, 2021 to common shareholders of record as of February 19, 2021.

Parks net income for the fourth quarter of 2020 was $45.2 million, an 88.8 percent increase from $23.9 million for the fourth quarter of 2019. Fourth quarter 2020 net income per diluted common share was $2.75, compared to $1.45 in the fourth quarter of 2019. Park's net income for the full year of 2020 was $127.9 million, a 24.6 percent increase from $102.7 million for the full year of 2019. Net income per diluted common share was $7.80 for 2020, compared to $6.29 for 2019.

Our lending services throughout the year were a main driver in our overall performance. Our bankers mobilized to serve in new ways, delivering prompt advice and service to families and businesses who were struggling due to the pandemic or rushing to take advantage of opportunities, said Park President Matthew Miller. Were proud of our lending teams outstanding response to the surge of home loan activity and demand for U.S. PPP loans; and were deeply grateful to all our associates who showed extraordinary dedication to caring for customers and each other every day in 2020.

Park's community-banking subsidiary, The Park National Bank, reported net income of $34.2 million for the fourth quarter of 2020, a 28.6 percent increase compared to $26.6 million for the same period of 2019. The bank reported net income of $123.7 million for the full year of 2020, compared to $113.6 million for the full year of 2019.

Park National bankers reliability and flexibility were never more important than in 2020, Park Chairman and Chief Executive Officer David Trautman said. In a year filled with odd and often uncomfortable circumstances, we grew relationships with our customers and communities by responding to their needs in consistent, compassionate, and creative ways.

In 2020, Park National Corporation:

-- Donated $4 million dollars to local organizations like shelters, theaters, support agencies, youth teams, and clubs. -- Helped over 8,000 families purchase a new home or refinance their current one to put themselves in a better financial situation. -- Helped small businesses maintain their workforces with the preservation of over 65,000 jobs through the Paycheck Protection Program. -- Rapidly approved vehicle loans for 42,518 families who needed more space or more recreational time with the family. -- Guided local business owners in sustaining their retirement plans that support over 24,000 employees including many individuals saving for the first time in 2020. -- Offered video chat sessions for senior citizens on topics like fraud awareness, online banking, and ways to stay socially connected from home. -- Donated $600,000 to school programs, supporting educators whose response during these challenging times was an inspiration. -- Paid over $3 million to bank employees regardless if they could be at work, and offered bonus pay to Parks frontline employees.

Headquartered in Newark, Ohio, Park National Corporation has $9.3 billion in total assets (as of December 31, 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 (such as quarantines, shut downs and other restrictions on travel and commercial, social or other activities), the development, availability and effectiveness of vaccines, 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 and the follow-up legislation in the Consolidated Appropriations Act, 2021, 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 and the follow-up legislation in the Consolidated Appropriations Act, 2021, 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 and the follow-up legislation in the Consolidated Appropriations Act, 2021, the adoption of which can be deferred by Park until the earlier of: (1) the first day of the fiscal year that begins after the date on which the national emergency concerning the COVID-19 outbreak terminates; or (2) January 1, 2022, 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 the impact of changes to the U.S. presidential administration and Congress 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 (including any resulting branch closures or damages), military or 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 September 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 months ended December 31, 2020, September 30, 2020, andDecember 31, 2019 2020 2020 2019 Percent change vs.(in thousands,except share 4th QTR 3rd QTR 4th QTR 3Q '20 4Q '19and per sharedata)INCOME STATEMENT:Net interest $ 86,321 $ 83,840 $ 77,009 3.0 % 12.1 %income(Recovery of)provision for (19,159 ) 13,836 (213 ) N.M N.M loan lossesOther income 35,656 36,558 24,224 (2.5 ) % 47.2 %Other expense 85,661 69,859 71,231 22.6 % 20.3 %Income before $ 55,475 $ 36,703 $ 30,215 51.1 % 83.6 %income taxesIncome taxes 10,275 5,857 6,279 75.4 % 63.6 %Net income $ 45,200 $ 30,846 $ 23,936 46.5 % 88.8 % MARKET DATA: Earnings percommon share - $ 2.77 $ 1.89 $ 1.46 46.6 % 89.7 %basic (a)Earnings percommon share - 2.75 1.88 1.45 46.3 % 89.7 %diluted (a)Cash dividendsdeclared per 1.02 1.02 1.01 ? % 1.0 %common shareBook value percommon share 63.76 62.39 59.28 2.2 % 7.6 %at period endMarket priceper common 105.01 81.96 102.38 28.1 % 2.6 %share atperiod endMarketcapitalization 1,713,154 1,336,011 1,673,549 28.2 % 2.4 %at period end Weightedaverage common 16,310,551 16,300,720 16,342,485 0.1 % (0.2 ) %shares - basic(b)Weightedaverage common 16,434,812 16,393,792 16,454,553 0.3 % (0.1 ) %shares -diluted (b)Common sharesoutstanding at 16,314,197 16,300,763 16,346,442 0.1 % (0.2 ) %period end PERFORMANCERATIOS: (annualized)Return onaverage assets 1.93 % 1.28 % 1.09 % 50.8 % 77.1 %(a)(b)Return onaverage 17.37 % 12.03 % 9.83 % 44.4 % 76.7 %shareholders'equity (a)(b)Yield on loans 4.69 % 4.54 % 5.11 % 3.3 % (8.2 ) %Yield oninvestment 2.80 % 2.35 % 2.72 % 19.1 % 2.9 %securitiesYield on moneymarket 0.11 % 0.11 % 1.86 % ? % (94.1 ) %instrumentsYield oninterest 4.33 % 4.12 % 4.64 % 5.1 % (6.7 ) %earning assetsCost ofinterest 0.19 % 0.26 % 0.95 % (26.9 ) % (80.0 ) %bearingdepositsCost of 2.01 % 1.63 % 2.18 % 23.3 % (7.8 ) %borrowingsCost of payinginterest 0.40 % 0.39 % 1.04 % 2.6 % (61.5 ) %bearingliabilitiesNet interest 4.07 % 3.85 % 3.90 % 5.7 % 4.4 %margin (g)Efficiency 69.82 % 57.69 % 69.86 % 21.0 % (0.1 ) %ratio (g) OTHER RATIOS (NON-GAAP):Tangible bookvalue per $ 53.41 $ 52.00 $ 48.81 2.7 % 9.4 %share (d) Note: Explanations for footnotes (a) - (k) are included at the end of thefinancial tables in the "Financial Reconciliations" section. PARK NATIONAL CORPORATIONFinancial Highlights (continued)As of or for the three months ended December 31, 2020, September 30, 2020, andDecember 31, 2019 Percent change vs.(in thousands, December 31, September 30, December 31, 3Q '20 4Q '19except ratios) 2020 2020 2019BALANCE SHEET: Investment $ 1,124,806 $ 1,097,598 $ 1,279,507 2.5 % (12.1 ) %securitiesLoans 7,177,785 7,278,546 6,501,404 (1.4 ) % 10.4 %Allowance for 85,675 87,038 56,679 (1.6 ) % 51.2 %loan lossesGoodwill andother 168,855 169,380 171,118 (0.3 ) % (1.3 ) %intangibleassetsOther realestate owned 1,431 836 4,029 71.2 % (64.5 ) %(OREO)Total assets 9,279,021 9,240,006 8,558,377 0.4 % 8.4 %Total deposits 7,572,358 7,475,829 7,052,612 1.3 % 7.4 %Borrowings 562,504 643,103 438,157 (12.5 ) % 28.4 %Totalshareholders' 1,040,256 1,016,996 969,014 2.3 % 7.4 %equityTangible 871,401 847,616 797,896 2.8 % 9.2 %equity (d)Totalnonperforming 139,614 148,442 113,953 (5.9 ) % 22.5 %loansTotalnonperforming 144,209 152,670 121,581 (5.5 ) % 18.6 %assets ASSET QUALITY RATIOS:Loans as a %of period end 77.35 % 78.77 % 75.97 % (1.8 ) % 1.8 %total assetsTotalnonperformingloans as a % 1.95 % 2.04 % 1.75 % (4.4 ) % 11.4 %of period endloansTotalnonperformingassets as a %of period end 2.01 % 2.10 % 1.87 % (4.3 ) % 7.5 %loans + OREO+othernonperformingassetsAllowance forloan losses as 1.19 % 1.20 % 0.87 % (0.8 ) % 36.8 %a % of periodend loansNet loan(recoveries) $ (17,796 ) $ 274 $ (1,039 ) N.M N.M charge-offsAnnualized netloan(recoveries) (0.98 ) % 0.02 % (0.06 ) % N.M N.M charge-offs asa % of averageloans (b) CAPITAL & LIQUIDITY:Totalshareholders'equity / 11.21 % 11.01 % 11.32 % 1.8 % (1.0 ) %Period endtotal assetsTangibleequity (d) / 9.57 % 9.34 % 9.51 % 2.5 % 0.6 %Tangibleassets (f)Averageshareholders'equity / 11.11 % 10.67 % 11.12 % 4.1 % (0.1 ) %Average assets(b)Averageshareholders'equity / 14.29 % 14.08 % 15.03 % 1.5 % (4.9 ) %Average loans(b)Average loans/ Average 95.80 % 92.02 % 89.36 % 4.1 % 7.2 %deposits (b) Note: Explanations for footnotes (a) - (k) are included at the end of thefinancial tables in the "Financial Reconciliations" section.

PARK NATIONAL CORPORATIONFinancial HighlightsTwelve months ended December 31, 2020 and December 31, 2019 (in thousands, except share and Percentper share data and ratios) 2020 2019 change vs '19INCOME STATEMENT: Net interest income $ 327,630 $ 297,737 10.0 %Provision for loan losses 12,054 6,171 95.3 %Other income 125,664 97,193 29.3 %Other expense 286,595 263,988 8.6 %Income before income taxes $ 154,645 $ 124,771 23.9 %Income taxes 26,722 22,071 21.1 %Net income $ 127,923 $ 102,700 24.6 % MARKET DATA: Earnings per common share - basic $ 7.85 $ 6.33 24.0 %(a)Earnings per common share - 7.80 6.29 24.0 %diluted (a)Cash dividends declared per 4.28 4.24 0.9 %common share Weighted average common shares - 16,302,825 16,234,342 0.4 %basic (b)Weighted average common shares - 16,407,502 16,329,456 0.5 %diluted (b) PERFORMANCE RATIOS: Return on average assets (a)(b) 1.38 % 1.21 % 14.0 %Return on average shareholders' 12.68 % 11.14 % 13.8 %equity (a)(b)Yield on loans 4.71 % 5.19 % (9.2 ) %Yield on investment securities 2.66 % 2.76 % (3.6 ) %Yield on money market instruments 0.26 % 2.33 % (88.8 ) %Yield on interest earning assets 4.28 % 4.70 % (8.9 ) %Cost of interest bearing deposits 0.41 % 1.01 % (59.4 ) %Cost of borrowings 1.77 % 2.14 % (17.3 ) %Cost of paying interest bearing 0.52 % 1.12 % (53.6 ) %liabilitiesNet interest margin (g) 3.93 % 3.89 % 1.0 %Efficiency ratio (g) 62.83 % 66.35 % (5.3 ) % ASSET QUALITY RATIOS: Net loan charge-offs $ (16,942 ) $ 1,004 N.M. Net loan charge-offs as a % of (0.24 ) % 0.02 % N.M. average loans (b) CAPITAL & LIQUIDITY: Average shareholders' equity / 10.92 % 10.88 % 0.4 %Average assets (b)Average shareholders' equity / 14.44 % 14.85 % (2.8 ) %Average loans (b)Average loans / Average deposits 91.58 % 89.91 % 1.9 %(b) Note: Explanations for footnotes(a) - (k) are included at the endof the financial tables in the "Financial Reconciliations"section.

PARK NATIONAL CORPORATION Consolidated Statements of Income Three Months Ended Twelve Months Ended December 31, December 31,(inthousands,except share 2020 2019 2020 2019and pershare data) Interest income:Interest andfees on $ 85,268 $ 82,698 $ 328,727 $ 321,385 loansInterest on: Obligationsof U.S. Government,its agenciesand othersecurities - 4,420 5,973 19,818 26,213 taxableObligationsof statesand 2,040 2,205 8,436 8,955 politicalsubdivisions- tax-exemptOtherinterest 72 953 739 3,947 incomeTotalinterest 91,800 91,829 357,720 360,500 income Interest expense:Interest on deposits:Demand andsavings 490 7,795 9,142 33,348 depositsTime 1,893 4,666 12,186 17,494 depositsInterest on 3,096 2,359 8,762 11,921 borrowingsTotalinterest 5,479 14,820 30,090 62,763 expense Net interest 86,321 77,009 327,630 297,737 income (Recoveryof)provision (19,159 ) (213 ) 12,054 6,171 for loanlosses Net interestincome after(recoveryof) 105,480 77,222 315,576 291,566 provisionfor loanlosses Other income 35,656 24,224 125,664 97,193 Other 85,661 71,231 286,595 263,988 expense Incomebefore 55,475 30,215 154,645 124,771 income taxes Income taxes 10,275 6,279 26,722 22,071 Net income $ 45,200 $ 23,936 $ 127,923 $ 102,700 Per common share:Net income - $ 2.77 $ 1.46 $ 7.85 $ 6.33 basicNet income - $ 2.75 $ 1.45 $ 7.80 $ 6.29 diluted Weightedaverage 16,310,551 16,342,485 16,302,825 16,234,342 shares -basicWeightedaverage 16,434,812 16,454,553 16,407,502 16,329,456 shares -diluted Cashdividends $ 1.02 $ 1.01 $ 4.28 $ 4.24 declared

PARK NATIONAL CORPORATIONConsolidated Balance Sheets (in thousands, except share data) December 31, December 31, 2020 2019 Assets Cash and due from banks $ 155,596 $ 135,567 Money market instruments 214,878 24,389 Investment securities 1,124,806 1,279,507 Loans 7,177,785 6,501,404 Allowance for loan losses (85,675 ) (56,679 ) Loans, net 7,092,110 6,444,725 Bank premises and equipment, net 88,660 73,322 Goodwill and other intangible assets 168,855 171,118 Other real estate owned 1,431 4,029 Other assets 432,685 425,720 Total assets $ 9,279,021 $ 8,558,377 Liabilities and Shareholders' Equity Deposits: Noninterest bearing $ 2,727,100 $ 1,959,935 Interest bearing 4,845,258 5,092,677 Total deposits 7,572,358 7,052,612 Borrowings 562,504 438,157 Other liabilities 103,903 98,594 Total liabilities $ 8,238,765 $ 7,589,363 Shareholders' Equity: Preferred shares (200,000 shares authorized; noshares outstanding at December 31, 2020 and $ ? $ ? December 31, 2019)Common shares (No par value; 20,000,000 sharesauthorized;17,623,163 shares issued at 460,687 459,389 December 31, 2020 and 17,623,199 shares issuedat December 31, 2019)Accumulated other comprehensive income (loss), 5,571 (9,589 ) net of taxesRetained earnings 704,764 646,847 Treasury shares (1,308,966 shares at December31, 2020 and 1,276,757 shares at December 31, (130,766 ) (127,633 ) 2019)Total shareholders' equity $ 1,040,256 $ 969,014 Total liabilities and shareholders' equity $ 9,279,021 $ 8,558,377

PARK NATIONAL CORPORATION Consolidated Average Balance Sheets Three Months Ended Twelve Months Ended Dec 31 Dec 31(in 2020 2019 2020 2019thousands) Assets Cash and due $ 120,599 $ 129,105 $ 127,214 $ 130,372 from banksMoney market 263,212 203,259 280,952 169,703 instrumentsInvestment 1,066,145 1,300,927 1,214,551 1,360,540 securitiesLoans 7,245,273 6,431,374 6,990,458 6,208,496 Allowance for (89,920 ) (56,904 ) (71,221 ) (54,516 ) loan lossesLoans, net 7,155,353 6,374,470 6,919,237 6,153,980 Bank premisesand 86,717 73,487 81,357 69,710 equipment,netGoodwill andother 169,199 173,065 170,031 158,194 intangibleassetsOther real 856 3,871 2,174 4,066 estate ownedOther assets 454,418 430,513 446,117 427,464 Total assets $ 9,316,499 $ 8,688,697 $ 9,241,633 $ 8,474,029 Liabilitiesand Shareholders'Equity Deposits: Noninterest $ 2,657,881 $ 1,980,898 $ 2,394,717 $ 1,875,628 bearingInterest 4,904,995 5,216,050 5,238,147 5,029,854 bearingTotal 7,562,876 7,196,948 7,632,864 6,905,482 depositsBorrowings 611,890 429,979 494,532 556,564 Other 106,240 95,222 105,135 89,809 liabilitiesTotal $ 8,281,006 $ 7,722,149 $ 8,232,531 $ 7,551,855 liabilities Shareholders' Equity:Preferred $ ? $ ? $ ? $ ? sharesCommon shares 458,521 458,264 458,096 432,795 Accumulatedothercomprehensive 12,594 (11,694 ) 9,688 (30,160 ) income(loss), netof taxesRetained 695,509 648,007 673,273 633,389 earningsTreasury (131,131 ) (128,029 ) (131,955 ) (113,850 ) sharesTotalshareholders' $ 1,035,493 $ 966,548 $ 1,009,102 $ 922,174 equityTotalliabilitiesand $ 9,316,499 $ 8,688,697 $ 9,241,633 $ 8,474,029 shareholders'equity

PARK NATIONAL CORPORATIONConsolidated Statements of Income - Linked Quarters 2020 2020 2020 2020 2019(inthousands, 4th QTR 3rd QTR 2nd QTR 1st QTR 4th QTRexcept pershare data) Interest income:Interest andfees on $ 85,268 $ 82,617 $ 80,155 $ 80,687 $ 82,698 loansInterest on: Obligationsof U.S.Government,its agencies 4,420 4,841 5,026 5,531 5,973 and othersecurities -taxableObligationsof statesand 2,040 2,045 2,151 2,200 2,205 politicalsubdivisions- tax-exemptOtherinterest 72 63 113 491 953 incomeTotalinterest 91,800 89,566 87,445 88,909 91,829 income Interest expense:Interest on deposits:Demand andsavings 490 803 1,507 6,342 7,795 depositsTime 1,893 2,662 3,346 4,285 4,666 depositsInterest on 3,096 2,261 1,406 1,999 2,359 borrowingsTotalinterest 5,479 5,726 6,259 12,626 14,820 expense Net interest 86,321 83,840 81,186 76,283 77,009 income (Recoveryof)provision (19,159 ) 13,836 12,224 5,153 (213 ) for loanlosses Net interestincome after(recoveryof) 105,480 70,004 68,962 71,130 77,222 provisionfor loanlosses Other income 35,656 36,558 30,964 22,486 24,224 Other 85,661 69,859 64,799 66,276 71,231 expense Incomebefore 55,475 36,703 35,127 27,340 30,215 income taxes Income taxes 10,275 5,857 5,622 4,968 6,279 Net income $ 45,200 $ 30,846 $ 29,505 $ 22,372 $ 23,936 Per common share:Netincome- $ 2.77 $ 1.89 $ 1.81 $ 1.37 $ 1.46 basicNetincome- $ 2.75 $ 1.88 $ 1.80 $ 1.36 $ 1.45 diluted

PARK NATIONAL CORPORATIONDetail of other income and other expense - Linked Quarters 2020 2020 2020 2020 2019(in thousands) 4th QTR 3rd QTR 2nd QTR 1st QTR 4th QTR Other income: Income fromfiduciary $ 7,632 $ 7,335 $ 6,793 $ 7,113 $ 7,268 activitiesServicecharges on 2,123 2,118 1,676 2,528 2,757 depositaccountsOther service 12,040 13,047 8,758 3,766 4,382 incomeDebit card fee 5,787 5,853 5,560 4,960 5,341 incomeBank ownedlife insurance 1,170 1,192 1,179 1,248 1,158 incomeATM fees 432 491 438 412 446 (Loss) gain onthe sale of (7 ) 569 841 (196 ) 2 OREO, netNet (loss)gain on thesale of ? (27 ) 3,313 ? ? investmentsecuritiesGain (loss) onequity 2,931 1,201 (977 ) (973 ) (191 ) securities,netOthercomponents of 1,988 1,988 1,988 1,988 1,183 net periodicbenefit incomeMiscellaneous 1,560 2,791 1,395 1,640 1,878 Total other $ 35,656 $ 36,558 $ 30,964 $ 22,486 $ 24,224 income Other expense: Salaries $ 37,280 $ 31,632 $ 30,699 $ 28,429 $ 30,903 Employee 7,316 10,676 9,080 10,043 8,973 benefitsOccupancy 3,231 3,835 3,256 3,480 3,355 expenseFurniture andequipment 4,949 4,687 4,850 4,319 4,319 expenseDataprocessing 3,315 3,275 2,577 2,492 2,777 feesProfessionalfees and 9,359 7,977 6,901 7,066 10,503 servicesMarketing 1,752 1,454 1,136 1,486 1,468 Insurance 1,855 1,541 1,477 1,550 317 Communication 1,097 958 874 1,155 1,256 State tax 605 1,125 1,116 1,145 1,024 expenseAmortizationof intangible 525 525 607 606 623 assetsFHLBprepayment 8,736 ? ? 1,793 492 penaltyFoundation 3,000 ? ? ? 1,500 contributionsMiscellaneous 2,641 2,174 2,226 2,712 3,721 Total other $ 85,661 $ 69,859 $ 64,799 $ 66,276 $ 71,231 expense

PARK NATIONAL CORPORATIONAsset Quality Information Year ended December 31,(in thousands, 2020 2019 2018 2017 2016except ratios) Allowance for loan losses:Allowance forloan losses, $ 56,679 $ 51,512 $ 49,988 $ 50,624 $ 56,494 beginning ofperiodCharge-offs 10,304 11,177 13,552 19,403 20,799 Recoveries 27,246 10,173 7,131 10,210 20,030 Net(recoveries) (16,942 ) 1,004 6,421 9,193 769 charge-offsProvision for(recovery of) 12,054 6,171 7,945 8,557 (5,101 ) loan lossesAllowance forloan losses, $ 85,675 $ 56,679 $ 51,512 $ 49,988 $ 50,624 end of period Generalreserve trends:Allowance forloan losses, $ 85,675 $ 56,679 $ 51,512 $ 49,988 $ 50,624 end of periodAllowance onpurchasedcredit 167 268 ? ? ? impaired("PCI") loansAllowance onpurchased 678 ? ? ? ? loansSpecific 5,434 5,230 2,273 684 548 reservesGeneralreserves on $ 79,396 $ 51,181 $ 49,239 $ 49,304 $ 50,076 originatedloans Total loans $ 7,177,785 $ 6,501,404 $ 5,692,132 $ 5,372,483 $ 5,271,857 PCI loans 11,153 14,331 3,943 ? ? Purchased 360,056 548,436 225,029 ? ? loansImpairedcommercial 108,407 77,459 48,135 56,545 70,415 loansOriginatedloansexcluding $ 6,698,169 $ 5,861,178 $ 5,415,025 $ 5,315,938 $ 5,201,442 impairedcommercialloans Asset Quality Ratios:Net(recoveries)charge-offs as (0.24 ) % 0.02 % 0.12 % 0.17 % 0.02 %a % of averageloansAllowance forloan losses as 1.19 % 0.87 % 0.90 % 0.93 % 0.96 %a % of periodend loansAllowance forloan losses onoriginatedloans as % of 1.31 % N.A. N.A. N.A. N.A. originatedtotal loans(excluding PPPloans) (k)Generalreserve as a %of originatedtotal loans 1.19 % 0.87 % 0.91 % 0.93 % 0.96 %less impairedcommercialloansGeneralreserves as a% oforiginatedtotal loans 1.24 % N.A. N.A. N.A. N.A. less impairedcommercialloans(excluding PPPloans) (k) Nonperforming assets:Nonaccrual $ 117,368 $ 90,080 $ 67,954 $ 72,056 $ 87,822 loansAccruingtroubled debt 20,788 21,215 15,173 20,111 18,175 restructuringsLoans past due90 days or 1,458 2,658 2,243 1,792 2,086 moreTotalnonperforming $ 139,614 $ 113,953 $ 85,370 $ 93,959 $ 108,083 loansOther realestate owned - 837 3,100 2,788 6,524 6,025 Park NationalBankOther realestate owned - 594 929 1,515 7,666 7,901 SEPHOthernonperforming 3,164 3,599 3,464 4,849 ? assets - ParkNational BankTotalnonperforming $ 144,209 $ 121,581 $ 93,137 $ 112,998 $ 122,009 assetsPercentage ofnonaccrualloans to 1.64 % 1.39 % 1.19 % 1.34 % 1.67 %period endloansPercentage ofnonperformingloans to 1.95 % 1.75 % 1.50 % 1.75 % 2.05 %period endloansPercentage ofnonperformingassets to 2.01 % 1.87 % 1.64 % 2.10 % 2.31 %period endloansPercentage ofnonperformingassets to 1.55 % 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,(in thousands, 2020 2019 2018 2017 2016except ratios) New nonaccrual loan information:Nonaccrual loans,beginning of $ 90,080 $ 67,954 $ 72,056 $ 87,822 $ 95,887 periodNew nonaccrual 103,386 81,009 76,611 58,753 74,786 loansResolved 76,098 58,883 80,713 74,519 82,851 nonaccrual loansNonaccrual loans, $ 117,368 $ 90,080 $ 67,954 $ 72,056 $ 87,822 end of period Impairedcommercial loanportfolio information(period end):Unpaid principal $ 109,062 $ 78,178 $ 59,381 $ 66,585 $ 95,358 balancePrior charge-offs 655 719 11,246 10,040 24,943 Remaining 108,407 77,459 48,135 56,545 70,415 principal balanceSpecific reserves 5,434 5,230 2,273 684 548 Book value, after $ 102,973 $ 72,229 $ 45,862 $ 55,861 $ 69,867 specific reserves

PARK NATIONAL CORPORATION Financial ReconciliationsNON-GAAP RECONCILIATIONS THREE MONTHS ENDED TWELVE MONTHS ENDED(in thousands,except share December 31, September December 31, December 31, December 31,and per share 2020 30, 2020 2019 2020 2019data)Net interest $ 86,321 $ 83,840 $ 77,009 $ 327,630 $ 297,737 incomeless purchaseaccountingaccretionrelated to 919 1,071 1,947 4,669 5,786 NewDominion andCarolinaAllianceacquisitionsless interestincome onformer Vision 102 8 249 453 256 BankrelationshipsNet interestincome - $ 85,300 $ 82,761 $ 74,813 $ 322,508 $ 291,695 adjusted (Recovery of)provision for $ (19,159 ) $ 13,836 $ (213 ) $ 12,054 $ 6,171 loan lossesless recoverieson former (20,496 ) (37 ) (2,302 ) (21,982 ) (3,042 ) Vision Bankrelationships(Recovery of)provision for $ 1,337 $ 13,873 $ 2,089 $ 34,036 $ 9,213 loan losses -adjusted Other income $ 35,656 $ 36,558 $ 24,224 $ 125,664 $ 97,193 less otherservice incomerelated to 503 35 ? 590 52 former VisionBankrelationshipsless net gain(loss) on saleof former ? 371 28 1,208 (111 ) Vision BankOREO propertiesless rebrandinginitiative (298 ) ? ? (572 ) ? relatedexpensesless net (loss)gain on thesale of debtsecurities in ? (27 ) ? 3,286 (421 ) the ordinarycourse ofbusinessOther income - $ 35,451 $ 36,179 $ 24,196 $ 121,152 $ 97,673 adjusted Other expense $ 85,661 $ 69,859 $ 71,231 $ 286,595 $ 263,988 lessmerger-relatedexpensesrelated to 9 163 1,885 629 8,877 NewDominion andCarolinaAllianceacquisitionsless coredepositintangibleamortizationrelated to 525 525 623 2,263 2,355 NewDominion andCarolinaAllianceacquisitionsless FDICassessment ? ? (1,136 ) ? (2,193 ) creditless directexpensesrelated tocollection of 4,051 232 622 4,283 622 payments onformer VisionBank loanrelationshipsless FHLBprepayment 8,736 ? 492 10,529 612 penaltyless rebrandinginitiativerelatedexpenses 229 429 2,134 1,040 2,476 (includingtrade nameintangibleexpense)less Foundation 3,000 ? 1,500 3,000 1,500 contributionless severanceand 4,039 67 22 4,443 107 restructuringchargesless COVID-19related 738 744 ? 3,622 ? expenses (j)Other expense - $ 64,334 $ 67,699 $ 65,089 $ 256,786 $ 249,632 adjusted Tax effect ofadjustments tonet income $ (83 ) $ 140 $ 339 $ (379 ) $ 1,208 identifiedabove (i) Net income - $ 45,200 $ 30,846 $ 23,936 $ 127,923 $ 102,700 reportedNet income - $ 44,888 $ 31,371 $ 25,213 $ 126,495 $ 107,244 adjusted

Diluted EPS $ 2.75 $ 1.88 $ 1.45 $ 7.80 $ 6.29 Diluted EPS, $ 2.73 $ 1.91 $ 1.53 $ 7.71 $ 6.57 adjusted (h) Annualizedreturn on 1.93 % 1.28 % 1.09 % 1.38 % 1.21 % averageassets (a)(b)Annualizedreturn onaverage 1.92 % 1.31 % 1.15 % 1.37 % 1.27 % assets,adjusted (a)(b)(h) Annualizedreturn onaverage 1.97 % 1.31 % 1.12 % 1.41 % 1.23 % tangibleassets (a)(b)(e)Annualizedreturn onaveragetangible 1.95 % 1.33 % 1.17 % 1.39 % 1.29 % assets,adjusted (a)(b)(e)(h) Annualizedreturn onaverage 17.37 % 12.03 % 9.83 % 12.68 % 11.14 % shareholders'equity (a)(b)Annualizedreturn onaverageshareholders' 17.25 % 12.23 % 10.35 % 12.54 % 11.63 % equity,adjusted (a)(b)(h) Annualizedreturn onaverage 20.76 % 14.43 % 11.97 % 15.25 % 13.44 % tangibleequity (a)(b)(c)Annualizedreturn onaveragetangible 20.61 % 14.67 % 12.61 % 15.08 % 14.04 % equity,adjusted (a)(b)(c)(h) Efficiency 69.82 % 57.69 % 69.86 % 62.83 % 66.35 % ratio (g)Efficiencyratio, 52.97 % 56.58 % 65.26 % 57.51 % 63.63 % adjusted (g)(h) Annualizednet interest 4.07 % 3.85 % 3.90 % 3.93 % 3.89 % margin (g)Annualizednet interestmargin, 4.02 % 3.80 % 3.79 % 3.86 % 3.81 % adjusted (g)(h)

PARK NATIONAL CORPORATION FinancialReconciliations (continued) (a) Reported measure uses net income(b) Averages are for the three months ended December 31, 2020, September 30,2020, and December 31, 2019 and for the twelve months ended December 31, 2020and December 31, 2019, as appropriate(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 TWELVE MONTHS ENDED December 31, September 30, December 31, December 31, December 31, 2020 2020 2019 2020 2019AVERAGESHAREHOLDERS' $ 1,035,493 $ 1,020,239 $ 966,548 $ 1,009,102 $ 922,174 EQUITYLess: Averagegoodwill andother 169,199 169,726 173,065 170,031 158,194 intangibleassetsAVERAGE $ 866,294 $ 850,513 $ 793,483 $ 839,071 $ 763,980 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: December 31, September 30, December 31, 2020 2020 2019TOTALSHAREHOLDERS' $ 1,040,256 $ 1,016,996 $ 969,014 EQUITYLess: Goodwilland other 168,855 169,380 171,118 intangibleassetsTANGIBLE EQUITY $ 871,401 $ 847,616 $ 797,896 (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 TWELVE MONTHS ENDED December 31, September 30, December 31, December 31, December 31, 2020 2020 2019 2020 2019AVERAGE ASSETS $ 9,316,499 $ 9,557,682 $ 8,688,697 $ 9,241,633 $ 8,474,029 Less: Averagegoodwill andother 169,199 169,726 173,065 170,031 158,194 intangibleassetsAVERAGE $ 9,147,300 $ 9,387,956 $ 8,515,632 $ 9,071,602 $ 8,315,835 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: December 31, September 30, December 31, 2020 2020 2019TOTAL ASSETS $ 9,279,021 $ 9,240,006 $ 8,558,377 Less: Goodwilland other 168,855 169,380 171,118 intangibleassetsTANGIBLE ASSETS $ 9,110,166 $ 9,070,626 $ 8,387,259 (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 TWELVE MONTHS ENDED December 31, September 30, December 31, December 31, December 31, 2020 2020 2019 2020 2019Interest income $ 91,800 $ 89,566 $ 91,829 $ 357,720 $ 360,500 Fully taxableequivalent 712 706 726 2,866 2,956 adjustmentFully taxableequivalent $ 92,512 $ 90,272 $ 92,555 $ 360,586 $ 363,456 interest incomeInterest 5,479 5,726 14,820 30,090 62,763 expenseFully taxableequivalent net $ 87,033 $ 84,546 $ 77,735 $ 330,496 $ 300,693 interest income (h) Adjustments to net income for each period presented are detailed in thenon-GAAP reconciliations of net interest income, (recovery of) provision forloan losses, other income and other expense.(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 $337.1 million and $542.8 million of PPP loans at December 31,2020 and September 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