GlobeNewswire Inc | Oct 25, 2021 04:10PM EDT

October 25, 2021

NEWARK, Ohio, Oct. 25, 2021 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the third quarter and first nine months of 2021 (three and nine months ended September 30, 2021). Park's board of directors declared a quarterly cash dividend of $1.03 per common share, payable on December 10, 2021 to common shareholders of record as of November 19, 2021. The board also declared a special cash dividend of $0.20 per common share, also payable on December 10, 2021 to common shareholders of record as of November 19, 2021.

Throughout another year of pandemic turbulence, our customers have relied on Park National for more security, convenience, and compassion. We continue to report new opportunities and growth in services from loans to retirement investments to digital banking. We are proud to help our communities not just endure difficult circumstances, but also navigate them and build for the future, Park Chairman and CEO David Trautman said.

Parks net income for the third quarter of 2021 was $35.4 million, a 14.9 percent increase from $30.8 million for the third quarter of 2020. Third quarter 2021 net income per diluted common share was $2.16, compared to $1.88 in the third quarter of 2020. Park's net income for the first nine months of 2021 was $117.4 million, a 41.9 percent increase from $82.7 million for the first nine months of 2020. Net income per diluted common share was $7.14 for the first nine months of 2021, compared to $5.04 for the first nine months of 2020.

Park's community-banking subsidiary, The Park National Bank, reported net income of $36.5 million for the third quarter of 2021, a 10.8 percent increase compared to $32.9 million for the same period of 2020. Park National Bank reported net income of $122.5 million for the first nine months of 2021, compared to $89.5 million for the first nine months of 2020.

Park also announced that effective October 31, 2021, it will raise its minimum wage for all associates to $15 per hour, to remain competitive in attracting and retaining associates in each of the communities Park serves. Additionally, Park will reward its current associates for their collective role in supporting Parks outstanding performance throughout another challenging year. Parks board approved a one-time bonus payment for all associates who are not eligible for Parks annual incentive compensation program. In November, each full-time associate in that group will receive an extra payment of $1,000, and part-time associates will receive $750.

Open communication, empathy, and flexibility have always been important parts of our culture, and that has been especially true throughout this pandemic. Our success depends on our associates, and our leaders keep a close watch to ensure were taking care of our colleagues and the customers they serve daily, Park President Matthew Miller said. We are pleased to continue to invest in support for our community organizations, customers, shareholders, and associates.

Headquartered in Newark, Ohio, Park National Corporation has $10.0 billion in total assets (as of September 30, 2021). 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: EarningsMedia 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

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995Park cautions that any forward-looking statements contained in this news release or made by management of Park are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance.The forward-looking statements are based on 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 or variants thereof - - 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 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 the federal, state, or local tax laws 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 and otherwise negatively impact our financial performance; -- the impact of the results of the 2020 U.S. elections, including on the regulatory landscape, capital markets, tax policy, infrastructure spending and social programs; -- 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 and the various responses to the COVID-19 pandemic; -- Park may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral; -- the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors; -- 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 American Rescue Plan Act of 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 American Rescue Plan Act of 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, 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, which may prove unreliable, inaccurate or not predictive of actual results; -- 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, including those of Park's third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Park and/or result in Park incurring a financial loss; -- 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); -- 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; -- 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, 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, 2021, June 30, 2021, and September 30, 2020 2021 2021 2020 Percent change vs.(in thousands,except share and 3rd QTR 2nd QTR 3rd QTR 2Q '21 3Q '20per share data)INCOME STATEMENT:Net interest $ 81,602 $ 83,851 $ 83,840 (2.7 ) % (2.7 ) %incomeProvision for(recovery of) 1,972 (4,040 ) 13,836 N.M N.Mcredit losses(l)Other income 32,411 31,238 36,558 3.8 % (11.3 ) %Other expense 68,489 71,400 69,859 (4.1 ) % (2.0 ) %Income before $ 43,552 $ 47,729 $ 36,703 (8.8 ) % 18.7 %income taxesIncome taxes 8,118 8,597 5,857 (5.6 ) % 38.6 %Net income $ 35,434 $ 39,132 $ 30,846 (9.5 ) % 14.9 % MARKET DATA: Earnings percommon share - $ 2.17 $ 2.39 $ 1.89 (9.2 ) % 14.8 %basic (a)Earnings percommon share - 2.16 2.38 1.88 (9.2 ) % 14.9 %diluted (a)Cash dividendsdeclared per 1.03 1.03 1.02 ? % 1.0 %common shareBook value percommon share at 65.90 65.44 62.39 0.7 % 5.6 %period endMarket price percommon share at 121.95 117.42 81.96 3.9 % 48.8 %period endMarketcapitalization 1,976,343 1,918,733 1,336,011 3.0 % 47.9 %at period end Weighted averagecommon shares - 16,292,312 16,340,690 16,300,720 (0.3 ) % (0.1 ) %basic (b)Weighted averagecommon shares - 16,423,912 16,472,800 16,393,792 (0.3 ) % 0.2 %diluted (b)Common sharesoutstanding at 16,206,177 16,340,772 16,300,763 (0.8 ) % (0.6 ) %period end PERFORMANCERATIOS: (annualized)Return onaverage assets 1.40 % 1.59 % 1.28 % (11.9 ) % 9.4 %(a)(b)Return onaverage 13.04 % 14.81 % 12.03 % (12.0 ) % 8.4 %shareholders'equity (a)(b)Yield on loans 4.47 % 4.60 % 4.54 % (2.8 ) % (1.5 ) %Yield oninvestment 2.12 % 2.31 % 2.35 % (8.2 ) % (9.8 ) %securitiesYield on moneymarket 0.16 % 0.10 % 0.11 % 60.0 % 45.5 %instrumentsYield oninterest earning 3.69 % 3.93 % 4.12 % (6.1 ) % (10.4 ) %assetsCost of interest 0.11 % 0.13 % 0.26 % (15.4 ) % (57.7 ) %bearing depositsCost of 2.00 % 1.91 % 1.63 % 4.7 % 22.7 %borrowingsCost of payinginterest bearing 0.26 % 0.29 % 0.39 % (10.3 ) % (33.3 ) %liabilitiesNet interest 3.53 % 3.74 % 3.85 % (5.6 ) % (8.3 ) %margin (g)Efficiency ratio 59.70 % 61.65 % 57.69 % (3.2 ) % 3.5 %(g) OTHER RATIOS (NON-GAAP):Tangible bookvalue per share $ 55.56 $ 55.17 $ 52.00 0.7 % 6.8 %(d) Note:Explanations forfootnotes (a) -(l) 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, 2021, June 30, 2021, and September 30, 2020 Percent change vs.(in thousands, September 30, June 30, 2021 September 30, 2Q '21 3Q '20except ratios) 2021 2020BALANCE SHEET: Investment $ 1,609,303 $ 1,461,916 $ 1,097,598 10.1 % 46.6 %securitiesLoans 6,908,417 7,035,646 7,278,546 (1.8 ) % (5.1 ) %Allowance forcredit losses 88,129 83,577 87,038 5.4 % 1.3 %(l)Goodwill andother intangible 167,477 167,897 169,380 (0.3 ) % (1.1 ) %assetsOther realestate owned 813 813 836 ? % (2.8 ) %(OREO)Total assets 10,034,018 9,947,994 9,240,006 0.9 % 8.6 %Total deposits 8,364,385 8,214,624 7,475,829 1.8 % 11.9 %Borrowings 424,078 501,350 643,103 (15.4 ) % (34.1 ) %Totalshareholders' 1,067,912 1,069,392 1,016,996 (0.1 ) % 5.0 %equityTangible equity 900,435 901,495 847,616 (0.1 ) % 6.2 %(d)Totalnonperforming 106,872 114,695 148,442 (6.8 ) % (28.0 ) %loansTotalnonperforming 110,849 118,672 152,670 (6.6 ) % (27.4 ) %assets ASSET QUALITY RATIOS:Loans as a % ofperiod end total 68.85 % 70.72 % 78.77 % (2.6 ) % (12.6 ) %assetsTotalnonperforming 1.55 % 1.63 % 2.04 % (4.9 ) % (24.0 ) %loans as a % ofperiod end loansTotalnonperformingassets as a % ofperiod end loans 1.60 % 1.69 % 2.10 % (5.3 ) % (23.8 ) %+ OREO+ othernonperformingassetsAllowance forcredit losses as 1.28 % 1.19 % 1.20 % 7.6 % 6.7 %a % of periodend loansNet loan(recoveries) $ (2,580 ) $ (731 ) $ 274 N.M N.Mcharge-offsAnnualized netloan(recoveries) (0.15 ) % (0.04 ) % 0.02 % N.M N.Mcharge-offs as a% of averageloans (b) CAPITAL & LIQUIDITY:Totalshareholders' 10.64 % 10.75 % 11.01 % (1.0 ) % (3.4 ) %equity / Periodend total assetsTangible equity(d) / Tangible 9.13 % 9.22 % 9.34 % (1.0 ) % (2.2 ) %assets (f)Averageshareholders' 10.71 % 10.74 % 10.67 % (0.3 ) % 0.4 %equity / Averageassets (b)Averageshareholders' 15.50 % 14.94 % 14.08 % 3.7 % 10.1 %equity / Averageloans (b)Average loans /Average deposits 82.68 % 86.49 % 92.02 % (4.4 ) % (10.1 ) %(b) Note: Explanations for footnotes (a) - (l) are included at theend of the financial tables in the "Financial Reconciliations" section.

PARK NATIONAL CORPORATIONFinancial HighlightsNine months ended September 30, 2021 and September 30, 2020 2021 2020 (in thousands, except share and Nine months Nine months Percentper share data) ended September ended September change vs 30 30 '20INCOME STATEMENT: Net interest income $ 246,187 $ 241,309 2.0 %(Recovery of) provision for (6,923 ) 31,213 N.Mcredit losses (l)Other income 97,738 90,008 8.6 %Other expense 207,754 200,934 3.4 %Income before income taxes $ 143,094 $ 99,170 44.3 %Income taxes 25,697 16,447 56.2 %Net income $ 117,397 $ 82,723 41.9 % MARKET DATA: Earnings per common share - $ 7.20 $ 5.07 42.0 %basic (a)Earnings per common share - 7.14 5.04 41.7 %diluted (a)Cash dividends declared per 3.29 3.26 0.9 %common share Weighted average common shares 16,315,996 16,300,250 0.1 %- basic (b)Weighted average common shares 16,445,568 16,398,350 0.3 %- diluted (b) PERFORMANCE RATIOS: (annualized)Return on average assets (a)(b) 1.59 % 1.20 % 32.5 %Return on average shareholders' 14.79 % 11.05 % 33.8 %equity (a)(b)Yield on loans 4.52 % 4.72 % (4.2 ) %Yield on investment securities 2.30 % 2.62 % (12.2 ) %Yield on money market 0.13 % 0.31 % (58.1 ) %instrumentsYield on interest earning 3.86 % 4.27 % (9.6 ) %assetsCost of interest bearing 0.13 % 0.47 % (72.3 ) %depositsCost of borrowings 1.92 % 1.66 % 15.7 %Cost of paying interest bearing 0.29 % 0.57 % (49.1 ) %liabilitiesNet interest margin (g) 3.67 % 3.88 % (5.4 ) %Efficiency ratio (g) 60.03 % 60.26 % (0.4 ) % ASSET QUALITY RATIOS Net loan (recoveries) $ (3,287 ) $ 854 N.M.charge-offsNet loan (recoveries)charge-offs as a % of average (0.06 ) % 0.02 % N.M.loans (b) CAPITAL & LIQUIDITY Average shareholders' equity / 10.77 % 10.85 % (0.7 ) %Average assets (b)Average shareholders' equity / 15.02 % 14.49 % 3.7 %Average loans (b)Average loans / Average 86.33 % 90.19 % (4.3 ) %deposits (b) Note: Explanations forfootnotes (a) - (l) areincluded at the end of the financial tables in the"Financial Reconciliations"section.

PARK NATIONAL CORPORATION Consolidated Statements of Income Three Months Ended Nine Months Ended September 30, September 30,(inthousands,except share 2021 2020 2021 2020and pershare data) Interest income:Interest andfees on $ 78,127 $ 82,617 $ 238,040 $ 243,459 loansInterest on: Obligationsof U.S. Government,its agenciesand othersecurities - 4,904 4,841 13,760 15,398 taxableObligationsof statesand 2,029 2,045 6,098 6,396 politicalsubdivisions- tax-exemptOtherinterest 360 63 689 667 incomeTotalinterest 85,420 89,566 258,587 265,920 income Interest expense:Interest on deposits:Demand andsavings 435 803 1,222 8,652 depositsTime 1,011 2,662 3,880 10,293 depositsInterest on 2,372 2,261 7,298 5,666 borrowingsTotalinterest 3,818 5,726 12,400 24,611 expense Net interest 81,602 83,840 246,187 241,309 income Provisionfor(recovery 1,972 13,836 (6,923 ) 31,213 of) creditlosses (l) Net interestincome afterprovisionfor 79,630 70,004 253,110 210,096 (recoveryof) creditlosses Other income 32,411 36,558 97,738 90,008 Other 68,489 69,859 207,754 200,934 expense Incomebefore 43,552 36,703 143,094 99,170 income taxes Income taxes 8,118 5,857 25,697 16,447 Net income $ 35,434 $ 30,846 $ 117,397 $ 82,723 Per common share:Net income - $ 2.17 $ 1.89 $ 7.20 $ 5.07 basicNet income - $ 2.16 $ 1.88 $ 7.14 $ 5.04 diluted Weightedaverage 16,292,312 16,300,720 16,315,996 16,300,250 shares -basicWeightedaverage 16,423,912 16,393,792 16,445,568 16,398,350 shares -diluted Cashdividends $ 1.03 $ 1.02 $ 3.29 $ 3.26 declared

PARK NATIONAL CORPORATIONConsolidated Balance Sheets (in thousands, except share data) September 30, December 31, 2021 2020 Assets Cash and due from banks $ 127,685 $ 155,596 Money market instruments 749,710 214,878 Investment securities 1,609,303 1,124,806 Loans 6,908,417 7,177,785 Allowance for credit losses (l) (88,129 ) (85,675 ) Loans, net 6,820,288 7,092,110 Bank premises and equipment, net 88,909 88,660 Goodwill and other intangible assets 167,477 168,855 Other real estate owned 813 1,431 Other assets 469,833 432,685 Total assets $ 10,034,018 $ 9,279,021 Liabilities and Shareholders' Equity Deposits: Noninterest bearing $ 2,981,928 $ 2,727,100 Interest bearing 5,382,457 4,845,258 Total deposits 8,364,385 7,572,358 Borrowings 424,078 562,504 Other liabilities 177,643 103,903 Total liabilities $ 8,966,106 $ 8,238,765 Shareholders' Equity: Preferred shares (200,000 shares authorized;no shares outstanding at September 30, 2021 $ ? $ ? and December 31, 2020)Common shares (No par value; 20,000,000 sharesauthorized;17,623,132 shares issued at 459,953 460,687 September 30, 2021 and 17,623,163 sharesissued at December 31, 2020)Accumulated other comprehensive (loss) income, (7,810 ) 5,571 net of taxesRetained earnings 759,619 704,764 Treasury shares (1,416,955 shares at September30, 2021 and 1,308,966 shares at December 31, (143,850 ) (130,766 ) 2020)Total shareholders' equity $ 1,067,912 $ 1,040,256 Total liabilities and shareholders' equity $ 10,034,018 $ 9,279,021

PARK NATIONAL CORPORATION Consolidated Average Balance Sheets Three Months Ended Nine Months Ended September 30, September 30,(in thousands) 2021 2020 2021 2020 Assets Cash and due from $ 130,716 $ 121,973 $ 136,728 $ 129,436 banksMoney market 895,784 223,563 724,561 286,909 instrumentsInvestment 1,461,434 1,330,520 1,310,762 1,264,381 securitiesLoans 6,956,064 7,247,021 7,062,336 6,904,900 Allowance for credit (83,935 ) (74,718 ) (86,969 ) (64,942 )losses (l)Loans, net 6,872,129 7,172,303 6,975,367 6,839,958 Bank premises and 89,718 83,609 89,909 79,557 equipment, netGoodwill and other 167,754 169,726 168,215 170,311 intangible assetsOther real estate 776 1,299 935 2,616 ownedOther assets 452,405 454,689 446,980 443,327 Total assets $ 10,070,716 $ 9,557,682 $ 9,853,457 $ 9,216,495 Liabilities and Shareholders' Equity Deposits: Noninterest bearing $ 2,953,605 $ 2,565,417 $ 2,896,126 $ 2,306,355 Interest bearing 5,459,400 5,309,718 5,284,664 5,350,009 Total deposits 8,413,005 7,875,135 8,180,790 7,656,364 Borrowings 471,148 552,452 507,989 455,127 Other liabilities 108,098 109,856 103,612 104,763 Total liabilities $ 8,992,251 $ 8,537,443 $ 8,792,391 $ 8,216,254 Shareholders' Equity:Preferred shares $ ? $ ? $ ? $ ? Common shares 458,988 457,571 459,213 457,953 Accumulated othercomprehensive (loss) (2,022 ) 15,400 (1,918 ) 8,712 income, net of taxesRetained earnings 755,435 679,519 734,715 665,808 Treasury shares (133,936 ) (132,251 ) (130,944 ) (132,232 )Total shareholders' $ 1,078,465 $ 1,020,239 $ 1,061,066 $ 1,000,241 equityTotal liabilitiesand shareholders' $ 10,070,716 $ 9,557,682 $ 9,853,457 $ 9,216,495 equity

PARK NATIONAL CORPORATIONConsolidated Statements of Income - Linked Quarters 2021 2021 2021 2020 2020(in thousands,except per share 3rd QTR 2nd QTR 1st QTR 4th QTR 3rd QTRdata) Interest income: Interest and fees $ 78,127 $ 81,176 $ 78,737 $ 85,268 $ 82,617 on loansInterest on: Obligations of U.S.Government, itsagencies and other 4,904 4,600 4,256 4,420 4,841 securities -taxableObligations ofstates andpolitical 2,029 2,032 2,037 2,040 2,045 subdivisions -tax-exemptOther interest 360 186 143 72 63 incomeTotal interest 85,420 87,994 85,173 91,800 89,566 income Interest expense: Interest on deposits:Demand and savings 435 401 386 490 803 depositsTime deposits 1,011 1,285 1,584 1,893 2,662 Interest on 2,372 2,457 2,469 3,096 2,261 borrowingsTotal interest 3,818 4,143 4,439 5,479 5,726 expense Net interest income 81,602 83,851 80,734 86,321 83,840 Provision for(recovery of) 1,972 (4,040 ) (4,855 ) (19,159 ) 13,836 credit losses (l) Net interest incomeafter provision for 79,630 87,891 85,589 105,480 70,004 (recovery of)credit losses Other income 32,411 31,238 34,089 35,656 36,558 Other expense 68,489 71,400 67,865 85,661 69,859 Income before 43,552 47,729 51,813 55,475 36,703 income taxes Income taxes 8,118 8,597 8,982 10,275 5,857 Net income $ 35,434 $ 39,132 $ 42,831 $ 45,200 $ 30,846 Per common share: Net income- basic $ 2.17 $ 2.39 $ 2.63 $ 2.77 $ 1.89 Net income- $ 2.16 $ 2.38 $ 2.61 $ 2.75 $ 1.88 diluted

PARK NATIONAL CORPORATIONDetail of other income and other expense - Linked Quarters 2021 2021 2021 2020 2020(in thousands) 3rd QTR 2nd QTR 1st QTR 4th QTR 3rd QTR Other income: Income from fiduciary $ 8,820 $ 8,569 $ 8,173 $ 7,632 $ 7,335 activitiesService charges on 2,389 2,032 2,054 2,123 2,118 deposit accountsOther service income 6,668 7,159 9,617 12,040 13,047 Debit card fee income 6,453 6,758 6,086 5,787 5,853 Bank owned life 1,462 1,149 1,165 1,170 1,192 insurance incomeATM fees 622 655 530 432 491 Gain (loss) on the sale 3 4 (33 ) (7 ) 569 of OREO, netNet loss on the sale of ? ? ? ? (27 )debt securitiesGain on equity 609 467 1,810 2,931 1,201 securities, netOther components of net 2,038 2,038 2,038 1,988 1,988 periodic benefit incomeMiscellaneous 3,347 2,407 2,649 1,560 2,791 Total other income $ 32,411 $ 31,238 $ 34,089 $ 35,656 $ 36,558 Other expense: Salaries $ 29,433 $ 30,303 $ 29,896 $ 37,280 $ 31,632 Employee benefits 10,640 10,056 10,201 7,316 10,676 Occupancy expense 3,211 3,027 3,640 3,231 3,835 Furniture and equipment 2,797 2,756 2,610 4,949 4,687 expenseData processing fees 7,817 7,150 7,712 3,315 3,275 Professional fees and 6,973 6,973 5,664 9,359 7,977 servicesMarketing 1,574 1,290 1,491 1,752 1,454 Insurance 1,403 1,276 1,691 1,855 1,541 Communication 796 770 1,122 1,097 958 State tax expense 1,113 1,103 1,108 605 1,125 Amortization of 420 479 479 525 525 intangible assetsFHLB prepayment penalty ? ? ? 8,736 ? Foundation contributions ? 4,000 ? 3,000 ? Miscellaneous 2,312 2,217 2,251 2,641 2,174 Total other expense $ 68,489 $ 71,400 $ 67,865 $ 85,661 $ 69,859

PARK NATIONAL CORPORATIONAsset Quality Information Year ended December 31,(in thousands, September 30, June 30, 2021 March 31, 2021 2020 2019 2018 2017except ratios) 2021 Allowance for credit losses:Allowance forcredit losses, $ 83,577 $ 86,886 $ 85,675 $ 56,679 $ 51,512 $ 49,988 $ 50,624 beginning ofperiodCumulativechange inaccounting ? 6,090 ? ? ? ? principle;adoption ofASU 2016-13Charge-offs 1,002 1,070 1,701 10,304 11,177 13,552 19,403 Recoveries 3,582 1,801 1,677 27,246 10,173 7,131 10,210 Net(recoveries) (2,580 ) (731 ) 24 (16,942 ) 1,004 6,421 9,193 charge-offsProvision for(recovery of) 1,972 (4,040 ) (4,855 ) 12,054 6,171 7,945 8,557 credit lossesAllowance forcredit losses, $ 88,129 $ 83,577 $ 86,886 $ 85,675 $ 56,679 $ 51,512 $ 49,988 end of period Generalreserve trends:Allowance forcredit losses, $ 88,129 $ 83,577 $ 86,886 $ 85,675 $ 56,679 $ 51,512 $ 49,988 end of periodAllowance onpurchasedcreditdeteriorated("PCD") loans(purchased ? ? ? 167 268 ? ? creditimpaired("PCI") loansfor years 2020and prior)Allowance onpurchasedloans excluded ? ? ? 678 ? ? ? from thegeneralreserveSpecificreserves onindividually 3,466 3,915 4,962 5,434 5,230 2,273 684 evaluatedloansGeneralreserves oncollectively $ 84,663 $ 79,662 $ 81,924 $ 79,396 $ 51,181 $ 49,239 $ 49,304 evaluatedloans Total loans $ 6,908,417 $ 7,035,646 $ 7,168,745 $ 7,177,785 $ 6,501,404 $ 5,692,132 $ 5,372,483 PCD loans (PCIloans for 8,705 10,007 10,284 11,153 14,331 3,943 ? years 2020 andprior)Purchasedloans excludedfrom ? ? ? 360,056 548,436 225,029 ? collectivelyevaluatedloansIndividuallyevaluated 79,264 86,874 100,407 108,407 77,459 48,135 56,545 loansCollectivelyevaluated $ 6,820,448 $ 6,938,765 $ 7,058,054 $ 6,698,169 $ 5,861,178 $ 5,415,025 $ 5,315,938 loans Asset Quality Ratios:Net(recoveries)charge-offs as (0.15 ) % (0.04 ) % ? % (0.24 ) % 0.02 % 0.12 % 0.17 %a % of averageloans(annualized)Allowance forcredit lossesas a % of 1.28 % 1.19 % 1.21 % 1.19 % 0.87 % 0.90 % 0.93 %period endloansAllowance forcredit lossesas a % ofperiod end 1.30 % 1.23 % 1.28 % 1.25 % N.A. N.A. N.A.loans(excluding PPPloans) (k)Generalreserve as a %of 1.24 % 1.15 % 1.16 % 1.19 % 0.87 % 0.91 % 0.93 %collectivelyevaluatedloansGeneralreserves as a% ofcollectively 1.27 % 1.19 % 1.22 % 1.24 % N.A. N.A. N.A.evaluatedloans(excluding PPPloans) (k) Nonperforming assets:Nonaccrual $ 87,791 $ 96,760 $ 114,708 $ 117,368 $ 90,080 $ 67,954 $ 72,056 loansAccruingtroubled debt 18,797 17,420 14,817 20,788 21,215 15,173 20,111 restructuringsLoans past due90 days or 284 515 802 1,458 2,658 2,243 1,792 moreTotalnonperforming $ 106,872 $ 114,695 $ 130,327 $ 139,614 $ 113,953 $ 85,370 $ 93,959 loansOther realestate owned - 219 219 250 837 3,100 2,788 6,524 Park NationalBankOther realestate owned - 594 594 594 594 929 1,515 7,666 SEPHOthernonperforming 3,164 3,164 3,164 3,164 3,599 3,464 4,849 assets - ParkNational BankTotalnonperforming $ 110,849 $ 118,672 $ 134,335 $ 144,209 $ 121,581 $ 93,137 $ 112,998 assetsPercentage ofnonaccrualloans to 1.27 % 1.38 % 1.60 % 1.64 % 1.39 % 1.19 % 1.34 %period endloansPercentage ofnonperformingloans to 1.55 % 1.63 % 1.82 % 1.95 % 1.75 % 1.50 % 1.75 %period endloansPercentage ofnonperformingassets to 1.60 % 1.69 % 1.87 % 2.01 % 1.87 % 1.64 % 2.10 %period endloansPercentage ofnonperformingassets to 1.10 % 1.19 % 1.35 % 1.55 % 1.42 % 1.19 % 1.50 %period endtotal assets Note: Explanations for footnotes (a) - (l) 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, 2020 2019 2018 2017except 30, 2021 2021 2021ratios) Newnonaccrual loaninformation:Nonaccrualloans, $ 96,760 $ 114,708 $ 117,368 $ 90,080 $ 67,954 $ 72,056 $ 87,822 beginning ofperiodNewnonaccrual 8,825 11,342 12,540 103,386 81,009 76,611 58,753 loansResolvednonaccrual 17,794 29,290 15,200 76,098 58,883 80,713 74,519 loansNonaccrualloans, end $ 87,791 $ 96,760 $ 114,708 $ 117,368 $ 90,080 $ 67,954 $ 72,056 of period Impaired commercial loanportfolio information (period end):Unpaidprincipal $ 79,952 $ 87,502 $ 100,996 $ 109,062 $ 78,178 $ 59,381 $ 66,585 balancePrior 688 628 589 655 719 11,246 10,040 charge-offsRemainingprincipal 79,264 86,874 100,407 108,407 77,459 48,135 56,545 balanceSpecific 3,466 3,915 4,962 5,434 5,230 2,273 684 reservesBook value,after $ 75,798 $ 82,959 $ 95,445 $ 102,973 $ 72,229 $ 45,862 $ 55,861 specificreserves

PARK NATIONAL CORPORATION Financial ReconciliationsNON-GAAP RECONCILIATIONS THREE MONTHS ENDED NINE MONTHS ENDED(in thousands,except share September June 30, September September 30, September 30,and per share 30, 2021 2021 30, 2020 2021 2020data)Net interest $ 81,602 $ 83,851 $ 83,840 $ 246,187 $ 241,309 incomeless purchaseaccountingaccretionrelated to 807 806 1,071 2,744 3,750 NewDominion andCarolinaAllianceacquisitionsless interestincome onformer Vision 414 2,838 8 3,357 351 BankrelationshipsNet interestincome - $ 80,381 $ 80,207 $ 82,761 $ 240,086 $ 237,208 adjusted Provision for(recovery of) $ 1,972 $ (4,040 ) $ 13,836 $ (6,923 ) $ 31,213 credit lossesless recoverieson former (2,231 ) (152 ) (37 ) (2,640 ) (1,486 ) Vision BankrelationshipsProvision for(recovery of) $ 4,203 $ (3,888 ) $ 13,873 $ (4,283 ) $ 32,699 credit losses -adjusted Other income $ 32,411 $ 31,238 $ 36,558 $ 97,738 $ 90,008 less net gainon sale offormer Vision ? ? 371 ? 1,208 Bank OREOpropertiesless otherservice incomerelated to 143 3 36 204 88 former VisionBankrelationshipsless rebrandinginitiative ? ? ? ? (274 ) relatedexpensesless net (loss)gain on thesale of debtsecurities in ? ? (27 ) ? 3,286 the ordinarycourse ofbusinessOther income - $ 32,268 $ 31,235 $ 36,178 $ 97,534 $ 85,700 adjusted Other expense $ 68,489 $ 71,400 $ 69,859 $ 207,754 $ 200,934 lessmerger-relatedexpensesrelated to 4 4 163 20 620 NewDominion andCarolinaAllianceacquisitionsless coredepositintangibleamortizationrelated to 420 479 525 1,378 1,738 NewDominion andCarolinaAllianceacquisitionsless directexpensesrelated tocollection of 254 300 232 661 232 payments onformer VisionBank loanrelationshipsless FHLBprepayment ? ? ? ? 1,793 penaltyless rebrandinginitiative 437 342 429 1,734 837 relatedexpensesless Foundation ? 4,000 ? 4,000 ? contributionless severanceand 140 46 67 294 403 restructuringchargesless COVID-19related ? 670 744 1,535 2,884 expenses (j)Other expense - $ 67,234 $ 65,559 $ 67,699 $ 198,132 $ 192,427 adjusted Tax effect ofadjustments tonet income $ (491 ) $ 429 $ 139 $ 142 $ (291 ) identifiedabove (i) Net income - $ 35,434 $ 39,132 $ 30,846 $ 117,397 $ 82,723 reportedNet income - $ 33,585 $ 40,745 $ 31,371 $ 117,932 $ 81,626 adjusted (h) Dilutedearnings per $ 2.16 $ 2.38 $ 1.88 $ 7.14 $ 5.04 shareDilutedearnings per $ 2.04 $ 2.47 $ 1.91 $ 7.17 $ 4.98 share, adjusted(h) Annualizedreturn on 1.40 % 1.59 % 1.28 % 1.59 % 1.20 %average assets(a)(b)Annualizedreturn onaverage assets, 1.32 % 1.66 % 1.31 % 1.60 % 1.18 %adjusted (a)(b)(h) Annualizedreturn onaverage 1.42 % 1.62 % 1.31 % 1.62 % 1.22 %tangible assets(a)(b)(e)Annualizedreturn onaveragetangible 1.35 % 1.68 % 1.33 % 1.63 % 1.21 %assets,adjusted (a)(b)(e)(h) Annualizedreturn onaverage 13.04 % 14.81 % 12.03 % 14.79 % 11.05 %shareholders'equity (a)(b)Annualizedreturn onaverageshareholders' 12.36 % 15.42 % 12.23 % 14.86 % 10.90 %equity,adjusted (a)(b)(h) Annualizedreturn onaverage 15.44 % 17.60 % 14.43 % 17.58 % 13.31 %tangible equity(a)(b)(c)Annualizedreturn onaveragetangible 14.63 % 18.33 % 14.67 % 17.66 % 13.14 %equity,adjusted (a)(b)(c)(h) Efficiency 59.70 % 61.65 % 57.69 % 60.03 % 60.26 %ratio (g)Efficiencyratio, adjusted 59.31 % 58.45 % 56.58 % 58.31 % 59.20 %(g)(h) Annualized netinterest margin 3.53 % 3.74 % 3.85 % 3.67 % 3.88 %(g)Annualized netinterest 3.48 % 3.58 % 3.80 % 3.58 % 3.81 %margin,adjusted (g)(h) Note: Explanations for footnotes (a) - (l) areincluded at the end of the financial tables in the "Financial Reconciliations" section.

PARK NATIONAL CORPORATION FinancialReconciliations (continued) (a) Reported measure uses net income(b) Averages are for the three months ended September 30, 2021, June 30, 2021,and September 30, 2020 and the nine months ended September 30, 2021 andSeptember 30, 2020, 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 NINE MONTHS ENDED September 30, June 30, 2021 September 30, September 30, September 30, 2021 2020 2021 2020AVERAGESHAREHOLDERS' $ 1,078,465 $ 1,059,949 $ 1,020,239 $ 1,061,066 $ 1,000,241 EQUITYLess: Averagegoodwill andother 167,754 168,211 169,726 168,215 170,311 intangibleassetsAVERAGE $ 910,711 $ 891,738 $ 850,513 $ 892,851 $ 829,930 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, 2021 September 30, 2021 2020TOTALSHAREHOLDERS' $ 1,067,912 $ 1,069,392 $ 1,016,996 EQUITYLess: Goodwilland other 167,477 167,897 169,380 intangibleassetsTANGIBLE EQUITY $ 900,435 $ 901,495 $ 847,616 (e) Net income for each period divided by average tangible assets during theperiod.Average tangible assets equal average assets less average goodwill andother 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, 2021 September 30, September 30, September 30, 2021 2020 2021 2020AVERAGE ASSETS $ 10,070,716 $ 9,872,078 $ 9,557,682 $ 9,853,457 $ 9,216,495 Less: Averagegoodwill andother 167,754 168,211 169,726 168,215 170,311 intangibleassetsAVERAGE $ 9,902,962 $ 9,703,867 $ 9,387,956 $ 9,685,242 $ 9,046,184 TANGIBLE ASSETS (f) Tangible equity divided by tangible assets. Tangible assets equal 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, 2021 September 30, 2021 2020TOTAL ASSETS $ 10,034,018 $ 9,947,994 $ 9,240,006 Less: Goodwilland other 167,477 167,897 169,380 intangibleassetsTANGIBLE ASSETS $ 9,866,541 $ 9,780,097 $ 9,070,626 (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, 2021 September 30, September 30, September 30, 2021 2020 2021 2020Interest income $ 85,420 $ 87,994 $ 89,566 $ 258,587 $ 265,920 Fully taxableequivalent 717 718 706 2,149 2,154 adjustmentFully taxableequivalent $ 86,137 $ 88,712 $ 90,272 $ 260,736 $ 268,074 interest incomeInterest 3,818 4,143 5,726 12,400 24,611 expenseFully taxableequivalent net $ 82,319 $ 84,569 $ 84,546 $ 248,336 $ 243,463 interest income (h) Adjustments to net income for each period presented are detailed in thenon-GAAP reconciliations of net interest income, provision for (recovery of)credit 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 include calamitypay and special one-time bonuses to certain associates.(k) Excludes $131.5 million, $248.9 million and $331.6 million of PPP loans atSeptember 30, 2021, June 30, 2021 and December 31, 2020, respectively.(l) Park adopted ASU 2016-13 effective January 1, 2021. Theallowance for credit losses at September 30, 2021 and June30, 2021 and the related provision for (recovery of) credit losses for the three months ended September 30, 2021 and June30, 2021 and the nine months ended September 30, 2021 werecalculated utilizing this new guidance.