ZANESVILLE -- Park National Corporation (Park) reported financial results for the three-months (fourth quarter) and year ended Dec. 31, 2012. Park's Board of Directors also declared a $0.94 per common share quarterly cash dividend, payable on March 8, 2013, to common shareholders of record on Feb. 22, 2013. Park's net income in 2012 reduced slightly compared to the previous year, and its community bank divisions located in Ohio generated increases in loans, deposits, and assets under management in their trust and investments departments.
Park National Corporation Results
Net income for the year ended Dec. 31, 2012 was $78.6 million, a 4.3 percent decline from the $82.1 million in net income for 2011.
Earnings per diluted common share were $4.88 for the year ended Dec. 31, 2012, a 1.4 percent decrease from the $4.95 earnings per diluted common share reported for 2011.
Net income for the fourth quarter of 2012 was $16.3 million, a 53.8 percent increase from the $10.6 million in net income for the same period in 2011. Earnings per diluted common share were $1.06 for the fourth quarter of 2012, a 79.7 percent increase from the $0.59 earnings per diluted common share reported in the fourth quarter of 2011.
"Our associates' hard work resulted in several highlights for the year, including improved lending results and the sale of the Vision Bank business," said Park Chairman C. Daniel DeLawder. "The economic environment continues to challenge most banks' efforts to increase net interest income, and we're very proud of our successful growth, consistency, and overall performance."
Net income for the fourth quarter of 2011 and for the year ended December 31, 2011 included pre-tax gains of $3.4 million and $28.8 million, respectively, from the sale of investment securities.
There were no securities gains in 2012. Net income for the year ended Dec. 31, 2012 included a pre-tax gain of $22.2 million from the sale of substantially all of the performing loans, operating assets and the liabilities of Vision Bank. Excluding securities gains in 2011 and the gain from the sale of the Vision Bank business in 2012, net income for the years ended Dec. 31, 2012, and 2011 would have been $64.2 million and $63.4 million, respectively.
The Park National Bank Results
Park's community-banking subsidiary in Ohio, The Park National Bank (PNB), reported net income of $87.1 million for the year ended Dec. 31, 2012, compared to net income of $106.9 million ($91.5 million, excluding security gains) for the same period in 2011.
PNB had total assets of $6.5 billion at Dec. 31, 2012, compared to $6.3 billion at Dec. 31, 2011.
PNB's performance generated a return on average assets of 1.33 percent and 1.66 percent (1.42 percent, excluding security gains) in the years ended Dec. 31, 2012 and 2011, respectively.
PNB experienced loan growth of $196.7 million (or 4.7 percent) during 2012, ending the year with total loans of $4.4 billion. PNB also reported deposit growth of $202.5 million (or 4.4 percent) in 2012, ending the year with total deposits of $4.8 billion.
"A key part of our strategy is to consistently make loans available to individuals and businesses," said Park President David L. Trautman. "Our local lenders' commitment to service excellence led to loan growth in 2012 in nearly all categories, including home loans, business and commercial loans."