July 27, 2026Exhibit 99.1
Park National Corporation reports financial results for second quarter and first half of 2026 NEWARK, Ohio ‒ Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the second quarter and the first half of 2026. Park's board of directors declared a quarterly cash dividend of $1.10 per common share, payable on September 10, 2026, to common shareholders of record as of August 21, 2026.
Park’s net income for the second quarter of 2026 was $58.8 million, a 22.1 percent increase from $48.1 million for the second quarter of 2025. The second quarter of 2026 included $4.1 million ($3.3 million after tax) in expenses related to the merger with First Citizens Bancshares, Inc. Second quarter 2026 net income per diluted common share was $3.23, compared to $2.97 for the second quarter of 2025. Park's net income for the first half of 2026 was $100.4 million, an 11.3 percent increase from $90.3 million for the first half of 2025. The first half of 2026 included $19.6 million ($15.5 million after tax) in merger related expenses. Net income per diluted common share for the first half of 2026 was $5.64, compared to $5.56 for the first half of 2025.
“Our second quarter results reflect the strength of our relationship-based banking model, disciplined execution and commitment to serving customers and communities,” said Park CEO and President Matthew R. Miller. “Our teams are making exceptional progress toward the third-quarter First Citizens systems conversion, an important partnership milestone that will enhance our ability to serve customers and support our long-term growth strategy. I am grateful to our colleagues for their dedication, our customers for their trust and our shareholders for their continued confidence as we strive to increase value for all stakeholders.”
Park’s total loans increased $1.68 billion, or 20.9 percent, during 2026. The increase to total loans included $1.58 billion in loans acquired through the First Citizens transaction. Park's total deposits increased $2.43 billion, or 29.4 percent, during 2026, with an increase of 27.8 percent including off balance sheet deposits. The increase in total deposits included $2.22 billion in deposits acquired through the First Citizens transaction. The combination of solid loan growth and steady deposits contributed to Park's success in 2026.
“Our success begins with our colleagues. Their professionalism, teamwork and commitment to others reflect the very best of Park. While serving customers and communities each day, they are simultaneously working to ensure we execute the best conversion possible,” said Park Chairman David L. Trautman. “We look forward to fully welcoming our Tennessee colleagues and customers and deepening the relationships that help communities flourish.”
Headquartered in Newark, Ohio, Park National Corporation has $12.7 billion in total assets (as of June 30, 2026). 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), Park Investments, Inc., Park National Holdings, Inc., First Citizens Properties, Inc., First Citizens Risk Management, Inc., and SE Property Holdings, LLC.
Complete financial tables are listed below.
Category: Earnings
Media contact: Michelle Hamilton, 740.349.6014, media@parknationalbank.com
Investor contact: Brady Burt, 740.322.6844, investor@parknationalbank.com
Park National Corporation, 50 N. Third Street, Newark, Ohio 43055
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com
Financial Highlights
| As of or for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025 | As of or for the three months ended June 30, 2026, March 31, 2026 and June 30, 20252026 | 2026 | 2025 | Percent change 2Q '26 vs. |
|---|---|---|---|---|
| (in thousands, except common share and per common share data and ratios) | 2nd QTR | 1st QTR | 2nd QTR | 2Q '25 |
| INCOME STATEMENT: | ||||
| Net interest income | $138,857 | $125,780 | $108,991 | 27.4%% |
| Provision for credit losses | 4,575 | 2,672 | 2,853 | 60.4%% |
| Other income | 39,540 | 33,728 | 32,186 | 22.8%% |
| Other expense | 100,960 | 105,159 | 78,977 | 27.8%% |
| Income before income taxes | $72,862 | $51,677 | $59,347 | 22.8%% |
| Income taxes | 14,110 | 9,990 | 11,228 | 25.7%% |
| Net income | $58,752 | $41,687 | $48,119 | 22.1%% |
| MARKET DATA: | ||||
| Earnings per common share - basic (a) | $3.25 | $2.40 | $2.98 | 9.1%% |
| Earnings per common share - diluted (a) | 3.23 | 2.39 | 2.97 | 8.8%% |
| Quarterly cash dividend declared per common share | 1.10 | 1.10 | 1.07 | 2.8%% |
| Book value per common share at period end | 95.58 | 93.93 | 80.55 | 18.7%% |
| Market price per common share at period end | 182.99 | 163.45 | 167.26 | 9.4%% |
| Market capitalization at period end | 3,305,561 | 2,957,806 | 2,688,093 | 23.0%% |
| Weighted average common shares - basic (b) | 18,085,919 | 17,381,922 | 16,129,951 | 12.1%% |
| Weighted average common shares - diluted (b) | 18,181,868 | 17,457,573 | 16,215,565 | 12.1%% |
| Common shares outstanding at period end | 18,064,161 | 18,096,089 | 16,071,347 | 12.4%% |
| PERFORMANCE RATIOS: (annualized) | ||||
| Return on average assets (a)(b) | 1.84% | 1.43% | 1.92% | (4.2)%% |
| Return on average shareholders' equity (a)(b) | 13.69% | 10.67% | 14.96% | (8.5)%% |
| Yield on loans | 6.42% | 6.36% | 6.37% | 0.8%% |
| Yield on investment securities | 3.53% | 3.08% | 3.21% | 10.0%% |
| Yield on money market instruments | 4.09% | 3.95% | 4.34% | (5.8)%% |
| Yield on interest earning assets | 5.96% | 5.90% | 5.95% | 0.2%% |
| Cost of interest bearing deposits | 1.70% | 1.62% | 1.73% | (1.7)%% |
| Cost of borrowings | 2.45% | 2.08% | 3.92% | (37.5)%% |
| Cost of paying interest bearing liabilities | 1.71% | 1.63% | 1.83% | (6.6)%% |
| Net interest margin (g) | 4.81% | 4.80% | 4.75% | 1.3%% |
| Efficiency ratio (g) | 56.30% | 65.52% | 55.68% | 1.1%% |
| OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION: | ||||
| Tangible book value per common share (d) | $78.92 | $77.21 | $70.44 | 12.0%% |
| Average interest earning assets | 11,664,671 | 10,708,496 | 9,252,016 | 26.1%% |
| Pre-tax, pre-provision net income (j) | 77,437 | 54,349 | 62,200 | 24.5%% |
| Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section. |
Financial Highlights (continued)
| As of or for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025 | As of or for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025 | As of or for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025 | Percent change 2Q '26 vs. | Percent change 2Q '26 vs. | ||||
|---|---|---|---|---|---|---|---|---|
| (in thousands, except ratios) | June 30, 2026 | March 31, 2026 | June 30, 2025 | 1Q '26 | 2Q '25 | |||
| BALANCE SHEET: | ||||||||
| Investment securities | $1,389,379 | $1,366,955 | $1,062,526 | 1.6% | 30.8% | |||
| Loans | 9,731,356 | 9,667,260 | 7,963,221 | 0.7% | 22.2% | |||
| Allowance for credit losses | 110,686 | 108,590 | 89,785 | 1.9% | 23.3% | |||
| Goodwill and other intangible assets | 300,986 | 302,565 | 162,485 | (0.5)% | 85.2% | |||
| Other real estate owned (OREO) | 19,836 | 24,458 | 638 | (18.9)% | N.M. | |||
| Total assets | 12,677,010 | 12,983,967 | 9,949,578 | (2.4)% | 27.4% | |||
| Total deposits | 10,670,284 | 11,000,500 | 8,237,766 | (3.0)% | 29.5% | |||
| Borrowings | 137,422 | 150,176 | 285,582 | (8.5)% | (51.9)% | |||
| Total shareholders' equity | 1,726,576 | 1,699,759 | 1,294,480 | 1.6% | 33.4% | |||
| Total equity | 1,728,631 | 1,701,814 | 1,294,480 | 1.6% | 33.5% | |||
| Tangible equity (d) | 1,425,590 | 1,397,194 | 1,131,995 | 2.0% | 25.9% | |||
| Total nonperforming loans | 83,763 | 83,147 | 65,507 | 0.7% | 27.9% | |||
| Total nonperforming assets | 103,599 | 107,605 | 66,145 | (3.7)% | 56.6% | |||
| ASSET QUALITY RATIOS: | ||||||||
| Loans as a % of period end total assets | 76.76 | 74.46 | 80.04 | 3.1% | (4.1)% | |||
| Total nonperforming loans as a % of period end loans | 0.86 | 0.86 | 0.82 | — | 4.9% | |||
| Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets | 1.06 | 1.11 | 0.83 | (4.5)% | 27.7% | |||
| Allowance for credit losses as a % of period end loans | 1.14 | 1.12 | 1.13 | 1.8% | 0.9% | |||
| Net loan charge-offs | $2,479 | $2,628 | $1,198 | (5.7)% | N.M. | |||
| Annualized net loan charge-offs as a % of average loans (b) | 0.10 | 0.12 | 0.06 | (16.7)% | N.M. | |||
| CAPITAL & LIQUIDITY: | ||||||||
| Total shareholders' equity / Period end total assets | 13.62 | 13.09 | 13.01 | 4.0% | 4.7% | |||
| Tangible equity (d) / Tangible assets (f) | 11.52 | 11.02 | 11.57 | 4.5% | (0.4)% | |||
| Average shareholders' equity / Average assets (b) | 13.46 | 13.39 | 12.80 | 0.5% | 5.2% | |||
| Average shareholders' equity / Average loans (b) | 17.76 | 17.44 | 16.28 | 1.8% | 9.1% | |||
| Average loans / Average deposits (b) | 89.75 | 90.91 | 94.37 | (1.3)% | (4.9)% | |||
| Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section. |
Financial Highlights
| Six months ended June 30, 2026 and June 30, 2025(in thousands, except common share and per common share data and ratios) | Six months ended June 30, 2026 and June 30, 2025 · 2026Six months ended June 30 | 2025Six months ended June 30 | Percent change '26 vs '25 |
|---|---|---|---|
| INCOME STATEMENT: | |||
| Net interest income | $264,637 | $213,368 | 24.0% |
| Provision for credit losses | 7,247 | 3,609 | 100.8% |
| Other income | 73,268 | 57,932 | 26.5% |
| Other expense | 206,119 | 157,141 | 31.2% |
| Income before income taxes | $124,539 | $110,550 | 12.7% |
| Income taxes | 24,100 | 20,274 | 18.9% |
| Net income | $100,439 | $90,276 | 11.3% |
| MARKET DATA: | |||
| Earnings per common share - basic (a) | $5.66 | $5.59 | 1.3% |
| Earnings per common share - diluted (a) | 5.64 | 5.56 | 1.4% |
| Quarterly cash dividend declared per common share | 2.20 | 2.14 | 2.8% |
| Weighted average common shares - basic (b) | 17,733,921 | 16,144,647 | 9.8% |
| Weighted average common shares - diluted (b) | 17,819,777 | 16,227,150 | 9.8% |
| PERFORMANCE RATIOS: (annualized) | |||
| Return on average assets (a)(b) | 1.64% | 1.81% | (9.4)% |
| Return on average shareholders' equity (a)(b) | 12.25% | 14.22% | (13.9)% |
| Yield on loans | 6.39% | 6.32% | 1.1% |
| Yield on investment securities | 3.32% | 3.23% | 2.8% |
| Yield on money market instruments | 4.03% | 4.40% | (8.4)% |
| Yield on interest earning assets | 5.93% | 5.90% | 0.5% |
| Cost of interest bearing deposits | 1.66% | 1.75% | (5.1)% |
| Cost of borrowings | 2.28% | 3.93% | (42.0)% |
| Cost of paying interest bearing liabilities | 1.67% | 1.84% | (9.2)% |
| Net interest margin (g) | 4.80% | 4.69% | 2.3% |
| Efficiency ratio (g) | 60.65% | 57.65% | 5.2% |
| ASSET QUALITY RATIOS: | |||
| Net loan charge-offs | $5,107 | $1,790 | 185.3% |
| Net loan charge-offs as a % of average loans (b) | 0.11% | 0.05% | 120.0% |
| CAPITAL & LIQUIDITY | |||
| Average shareholders' equity / Average Assets (b) | 13.42% | 12.72% | 5.5% |
| Average shareholders' equity / Average loans (b) | 17.60% | 16.25% | 8.3% |
| Average loans / Average deposits (b) | 90.30% | 93.96% | (3.9)% |
| OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION: | |||
| Average interest earning assets | 11,189,252 | 9,231,316 | 21.2% |
| Pre-tax, pre-provision net income (j) | 131,786 | 114,159 | 15.4% |
| Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section. |
Consolidated Statements of Income
| (in thousands, except share and per share data) | Three Months Ended · June 302026 | Three Months Ended · June 302025 | Six Months Ended · June 302026 | Six Months Ended · June 302025 |
|---|---|---|---|---|
| Interest income: | ||||
| Interest and fees on loans | $154,692 | $125,543 | $296,734 | $246,191 |
| Interest on debt securities: | ||||
| Taxable | 9,320 | 6,693 | 15,164 | 13,823 |
| Tax-exempt | 2,123 | 1,503 | 4,349 | 2,772 |
| Other interest income | 6,192 | 2,757 | 10,857 | 5,910 |
| Total interest income | 172,327 | 136,496 | 327,104 | 268,696 |
| Interest expense: | ||||
| Interest on deposits: | ||||
| Demand and savings deposits | 23,517 | 19,055 | 44,366 | 37,491 |
| Time deposits | 9,122 | 5,821 | 16,654 | 12,591 |
| Interest on borrowings | 831 | 2,629 | 1,447 | 5,246 |
| Total interest expense | 33,470 | 27,505 | 62,467 | 55,328 |
| Net interest income | 138,857 | 108,991 | 264,637 | 213,368 |
| Provision for credit losses | 4,575 | 2,853 | 7,247 | 3,609 |
| Net interest income after provision for credit losses | 134,282 | 106,138 | 257,390 | 209,759 |
| Other income | 39,540 | 32,186 | 73,268 | 57,932 |
| Other expense | 100,960 | 78,977 | 206,119 | 157,141 |
| Income before income taxes | 72,862 | 59,347 | 124,539 | 110,550 |
| Income taxes | 14,110 | 11,228 | 24,100 | 20,274 |
| Net income | $58,752 | $48,119 | $100,439 | $90,276 |
| Per common share: | ||||
| Net income - basic | $3.25 | $2.98 | $5.66 | $5.59 |
| Net income - diluted | $3.23 | $2.97 | $5.64 | $5.56 |
| Weighted average common shares - basic | 18,085,919 | 16,129,951 | 17,733,921 | 16,144,647 |
| Weighted average common shares - diluted | 18,181,868 | 16,215,565 | 17,819,777 | 16,227,150 |
| Cash dividends declared: | ||||
| Quarterly dividend | $1.10 | $1.07 | $2.20 | $2.14 |
Consolidated Balance Sheets
| (in thousands, except share data) | June 30, 2026 | December 31, 2025 |
|---|---|---|
| Assets | ||
| Cash and due from banks | $144,485 | $137,239 |
| Money market instruments | 435,824 | 96,274 |
| Investment securities | 1,389,379 | 802,142 |
| Loans | 9,731,356 | 8,051,242 |
| Allowance for credit losses | (110,686) | (92,973) |
| Loans, net | 9,620,670 | 7,958,269 |
| Bank premises and equipment, net | 96,430 | 61,627 |
| Goodwill and other intangible assets | 300,986 | 161,990 |
| Other real estate owned | 19,836 | 729 |
| Other assets | 669,400 | 586,743 |
| Total assets | $12,677,010 | $9,805,013 |
| Liabilities and Equity | ||
| Deposits: | ||
| Noninterest bearing | $3,084,889 | $2,656,093 |
| Interest bearing | 7,585,395 | 5,587,620 |
| Total deposits | 10,670,284 | 8,243,713 |
| Borrowings | 137,422 | 81,711 |
| Other liabilities | 140,673 | 126,796 |
| Total liabilities | $10,948,379 | $8,452,220 |
| Equity: | ||
| Preferred shares (200,000 shares authorized; no shares outstanding at June 30, 2026 or December 31, 2025) | — | — |
| Common shares (No par value; 40,000,000 shares authorized at June 30, 2026 and December 31, 2025; 19,611,235 shares issued at June 30, 2026 and 17,623,104 at December 31, 2025) | 784,614 | 465,032 |
| Accumulated other comprehensive loss, net of taxes | (16,901) | (12,739) |
| Retained earnings | 1,128,448 | 1,067,823 |
| Treasury shares (1,547,074 shares at June 30, 2026 and 1,544,842 shares at December 31, 2025) | (169,585) | (167,323) |
| Total shareholders' equity | $1,726,576 | $1,352,793 |
| Non-controlling interest in consolidated subsidiary | 2,055 | — |
| Total equity | $1,728,631 | $1,352,793 |
| Total liabilities and equity | $12,677,010 | $9,805,013 |
Consolidated Average Balance Sheets
| (in thousands) | Three Months EndedJune 30, 2026 | Three Months EndedJune 30, 2025 | Six Months EndedJune 30, 2026 | Six Months EndedJune 30, 2025 |
|---|---|---|---|---|
| Assets | ||||
| Cash and due from banks | $140,993 | $114,619 | $190,458 | $120,889 |
| Money market instruments | 607,263 | 254,697 | 543,319 | 270,767 |
| Investment securities | 1,375,215 | 1,061,693 | 1,265,398 | 1,065,635 |
| Loans | 9,691,723 | 7,922,263 | 9,392,367 | 7,877,994 |
| Allowance for credit losses | (110,075) | (88,773) | (107,574) | (88,799) |
| Loans, net | 9,581,648 | 7,833,490 | 9,284,793 | 7,789,195 |
| Bank premises and equipment, net | 94,820 | 65,800 | 88,245 | 67,387 |
| Goodwill and other intangible assets | 301,545 | 162,664 | 274,431 | 162,800 |
| Other real estate owned | 22,585 | 40 | 18,504 | 477 |
| Other assets | 663,340 | 585,458 | 651,667 | 584,975 |
| Total assets | $12,787,409 | $10,078,461 | $12,316,815 | $10,062,125 |
| Liabilities and Equity | ||||
| Deposits: | ||||
| Noninterest bearing | $3,079,994 | $2,626,232 | $2,984,059 | $2,602,666 |
| Interest bearing | 7,718,858 | 5,768,900 | 7,416,819 | 5,781,338 |
| Total deposits | 10,798,852 | 8,395,132 | 10,400,878 | 8,384,004 |
| Borrowings | 136,276 | 269,088 | 128,218 | 269,170 |
| Other liabilities | 129,148 | 124,200 | 132,559 | 128,746 |
| Total liabilities | $11,064,276 | $8,788,420 | $10,661,655 | $8,781,920 |
| Equity: | ||||
| Preferred shares | — | — | — | — |
| Common shares | 783,372 | 460,238 | 730,253 | 462,132 |
| Accumulated other comprehensive loss, net of taxes | (14,314) | (34,291) | (12,544) | (37,101) |
| Retained earnings | 1,117,850 | 1,022,323 | 1,102,302 | 1,009,930 |
| Treasury shares | (165,830) | (158,229) | (166,554) | (154,756) |
| Total shareholders' equity | $1,721,078 | $1,290,041 | $1,653,457 | $1,280,205 |
| Non-controlling interest in consolidated subsidiary | 2,055 | — | 1,703 | — |
| Total equity | $1,723,133 | $1,290,041 | $1,655,160 | $1,280,205 |
| Total liabilities and equity | $12,787,409 | $10,078,461 | $12,316,815 | $10,062,125 |
Consolidated Statements of Income - Linked Quarters
| Line item | 2026 | 2026 | 2025 | 2025 | 2025 |
|---|---|---|---|---|---|
| (in thousands, except per share data) | 2nd QTR | 1st QTR | 4th QTR | 3rd QTR | 2nd QTR |
| Interest income: | |||||
| Interest and fees on loans | $154,692 | $142,042 | $127,443 | $126,648 | $125,543 |
| Interest on debt securities: | |||||
| Taxable | 9,320 | 5,844 | 4,267 | 5,644 | 6,693 |
| Tax-exempt | 2,123 | 2,226 | 1,487 | 1,520 | 1,503 |
| Other interest income | 6,192 | 4,665 | 3,695 | 5,140 | 2,757 |
| Total interest income | 172,327 | 154,777 | 136,892 | 138,952 | 136,496 |
| Interest expense: | |||||
| Interest on deposits: | |||||
| Demand and savings deposits | 23,517 | 20,849 | 18,431 | 20,499 | 19,055 |
| Time deposits | 9,122 | 7,532 | 5,267 | 5,501 | 5,821 |
| Interest on borrowings | 831 | 616 | 268 | 1,935 | 2,629 |
| Total interest expense | 33,470 | 28,997 | 23,966 | 27,935 | 27,505 |
| Net interest income | 138,857 | 125,780 | 112,926 | 111,017 | 108,991 |
| Provision for credit losses | 4,575 | 2,672 | 3,849 | 4,030 | 2,853 |
| Net interest income after provision for credit losses | 134,282 | 123,108 | 109,077 | 106,987 | 106,138 |
| Other income | 39,540 | 33,728 | 31,375 | 30,574 | 32,186 |
| Other expense | 100,960 | 105,159 | 87,777 | 79,463 | 78,977 |
| Income before income taxes | 72,862 | 51,677 | 52,675 | 58,098 | 59,347 |
| Income taxes | 14,110 | 9,990 | 10,036 | 10,940 | 11,228 |
| Net income | $58,752 | $41,687 | $42,639 | $47,158 | $48,119 |
| Per common share: | |||||
| Net income - basic | $3.25 | $2.40 | $2.65 | $2.93 | $2.98 |
| Net income - diluted | $3.23 | $2.39 | $2.63 | $2.92 | $2.97 |
Detail of other income and other expense - Linked Quarters
| Line item | 2026 | 2026 | 2025 | 2025 | 2025 |
|---|---|---|---|---|---|
| (in thousands) | 2nd QTR | 1st QTR | 4th QTR | 3rd QTR | 2nd QTR |
| Other income: | |||||
| Income from fiduciary activities | $13,434 | $12,343 | $11,839 | $11,315 | $11,622 |
| Service charges on deposit accounts | 3,790 | 3,348 | 2,552 | 2,578 | 2,514 |
| Other service income | 4,124 | 3,686 | 4,099 | 3,716 | 3,731 |
| Debit card fee income | 8,107 | 6,973 | 6,493 | 6,604 | 6,607 |
| Bank owned life insurance income | 2,125 | 1,707 | 1,777 | 1,559 | 1,762 |
| ATM fees | 450 | 380 | 333 | 371 | 367 |
| Gain (loss) on sale of debt securities, net | — | 1,084 | (2,250) | — | — |
| Gain (loss) on equity securities, net | 4,555 | 799 | 3,595 | (549) | 2,480 |
| Other components of net periodic benefit income | 2,449 | 2,492 | 2,344 | 2,344 | 2,344 |
| Miscellaneous | 506 | 916 | 593 | 2,636 | 759 |
| Total other income | $39,540 | $33,728 | $31,375 | $30,574 | $32,186 |
| Other expense: | |||||
| Salaries | $46,023 | $45,577 | $39,315 | $38,644 | $38,560 |
| Employee benefits | 11,918 | 11,692 | 10,846 | 9,892 | 9,108 |
| Occupancy expense | 4,027 | 4,572 | 3,349 | 3,242 | 3,269 |
| Furniture and equipment expense | 3,014 | 2,517 | 2,007 | 2,219 | 2,234 |
| Data processing fees | 15,113 | 13,141 | 12,188 | 11,531 | 11,021 |
| Professional fees and services | 8,731 | 16,828 | 9,275 | 7,475 | 7,395 |
| Marketing | 1,550 | 1,556 | 1,744 | 1,507 | 1,295 |
| Insurance | 1,986 | 2,074 | 1,534 | 1,468 | 1,667 |
| Communication | 1,400 | 1,425 | 1,137 | 1,239 | 941 |
| State tax expense | 1,529 | 1,367 | 1,181 | 1,182 | 1,350 |
| Amortization of intangible assets | 2,072 | 1,279 | 247 | 248 | 273 |
| Foundation contributions | — | — | 1,000 | — | — |
| Miscellaneous | 3,597 | 3,131 | 3,954 | 816 | 1,864 |
| Total other expense | $100,960 | $105,159 | $87,777 | $79,463 | $78,977 |
Asset Quality Information
| (in thousands, except ratios) | June 30, 2026 | March 31, 2026 | Year ended December 31, 2025 | Year ended December 31, 2024 | Year ended December 31, 2023 | Year ended December 31, 2022 | Year ended December 31, 2021 |
|---|---|---|---|---|---|---|---|
| Allowance for credit losses: | |||||||
| Allowance for credit losses, beginning of period | $108,590 | $92,973 | $87,966 | $83,745 | $85,379 | $83,197 | $85,675 |
| Cumulative change in accounting principle; adoption of ASU 2022-02 in 2023 and ASU 2016-13 in 2021 | — | — | — | — | 383 | — | 6,090 |
| First Citizens acquisition - Day 1 ACL | — | 15,573 | — | — | — | — | — |
| Charge-offs | 4,470 | 4,440 | 16,624 | 18,334 | 10,863 | 9,133 | 5,093 |
| Recoveries | 1,991 | 1,812 | 10,143 | 8,012 | 5,942 | 6,758 | 8,441 |
| Net charge-offs (recoveries) | 2,479 | 2,628 | 6,481 | 10,322 | 4,921 | 2,375 | (3,348) |
| Provision for (recovery of) credit losses | 4,575 | 2,672 | 11,488 | 14,543 | 2,904 | 4,557 | (11,916) |
| Allowance for credit losses, end of period | $110,686 | $108,590 | $92,973 | $87,966 | $83,745 | $85,379 | $83,197 |
| General reserve trends: | |||||||
| Allowance for credit losses, end of period | $110,686 | $108,590 | $92,973 | $87,966 | $83,745 | $85,379 | $83,197 |
| Specific reserves on individually evaluated loans - certain accruing purchased credit deteriorated ("PCD") loans | — | — | — | — | — | — | — |
| Specific reserves on individually evaluated loans - accrual | — | — | — | — | — | — | 42 |
| Specific reserves on individually evaluated loans - nonaccrual | 4,424 | 3,041 | 739 | 1,299 | 4,983 | 3,566 | 1,574 |
| General reserves on collectively evaluated loans | $106,262 | $105,549 | $92,234 | $86,667 | $78,762 | $81,813 | $81,581 |
| Total loans | $9,731,356 | $9,667,260 | $8,051,242 | $7,817,128 | $7,476,221 | $7,141,891 | $6,871,122 |
| Individually evaluated - certain accruing PCD loans (PCI loans for years 2020 and prior) | — | 1,943 | 1,990 | 2,174 | 2,835 | 4,653 | 7,149 |
| Individually evaluated loans - accrual (k) | 11,535 | 14,792 | 18,365 | 15,290 | — | 11,477 | 17,517 |
| Individually evaluated loans - nonaccrual | 57,662 | 60,208 | 46,924 | 53,149 | 45,215 | 66,864 | 56,985 |
| Collectively evaluated loans | $9,662,159 | $9,590,317 | $7,983,963 | $7,746,515 | $7,428,171 | $7,058,897 | $6,789,471 |
| Asset Quality Ratios: | |||||||
| Net charge-offs (recoveries) as a % of average loans (annualized) | 0.10% | 0.12% | 0.08% | 0.14% | 0.07% | 0.03% | (0.05)% |
| Allowance for credit losses as a % of period end loans | 1.14% | 1.12% | 1.15% | 1.13% | 1.12% | 1.20% | 1.21% |
| General reserve as a % of collectively evaluated loans | 1.10% | 1.10% | 1.16% | 1.12% | 1.06% | 1.16% | 1.20% |
| Nonperforming assets: | |||||||
| Nonaccrual loans | $81,249 | $80,548 | $66,515 | $68,178 | $60,259 | $79,696 | $72,722 |
| Accruing troubled debt restructurings (for years 2022 and prior) (k) | N.A. | N.A. | N.A. | N.A. | N.A. | 20,134 | 28,323 |
| Loans past due 90 days or more | 2,514 | 2,599 | 2,738 | 1,754 | 859 | 1,281 | 1,607 |
| Total nonperforming loans | $83,763 | $83,147 | $69,253 | $69,932 | $61,118 | $101,111 | $102,652 |
| Other real estate owned | 19,836 | 24,458 | 729 | 938 | 983 | 1,354 | 775 |
| Other nonperforming assets | — | — | — | — | — | — | 2,750 |
| Total nonperforming assets | $103,599 | $107,605 | $69,982 | $70,870 | $62,101 | $102,465 | $106,177 |
| Percentage of nonaccrual loans to period end loans | 0.83% | 0.83% | 0.83% | 0.87% | 0.81% | 1.12% | 1.06% |
| Percentage of nonperforming loans to period end loans | 0.86% | 0.86% | 0.86% | 0.89% | 0.82% | 1.42% | 1.49% |
| Percentage of nonperforming assets to period end loans | 1.06% | 1.11% | 0.87% | 0.91% | 0.83% | 1.43% | 1.55% |
| Percentage of nonperforming assets to period end total assets | 0.82% | 0.83% | 0.71% | 0.72% | 0.63% | 1.04% | 1.11% |
| Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section. |
Asset Quality Information (continued)
| (in thousands, except ratios) | June 30, 2026 | March 31, 2026 | Year ended December 31, 2025 | Year ended December 31, 2024 | Year ended December 31, 2023 | Year ended December 31, 2022 | Year ended December 31, 2021 |
|---|---|---|---|---|---|---|---|
| New nonaccrual loan information: | |||||||
| Nonaccrual loans, beginning of period | $80,548 | $66,515 | $68,178 | $60,259 | $79,696 | $72,722 | $117,368 |
| Acquired nonaccrual loans | — | 4,506 | — | — | — | — | — |
| New nonaccrual loans | 21,099 | 23,215 | 87,482 | 65,535 | 48,280 | 64,918 | 38,478 |
| Resolved nonaccrual loans | 20,398 | 13,688 | 89,145 | 57,616 | 67,717 | 57,944 | 83,124 |
| Nonaccrual loans, end of period | $81,249 | $80,548 | $66,515 | $68,178 | $60,259 | $79,696 | $72,722 |
| Individually evaluated nonaccrual commercial loan portfolio information (period end): | |||||||
| Unpaid principal balance | $57,939 | $64,890 | $51,664 | $58,158 | $47,564 | $68,639 | $57,609 |
| Prior charge-offs | 277 | 4,682 | 4,740 | 5,009 | 2,349 | 1,775 | 624 |
| Remaining principal balance | 57,662 | 60,208 | 46,924 | 53,149 | 45,215 | 66,864 | 56,985 |
| Specific reserves | 4,424 | 3,041 | 739 | 1,299 | 4,983 | 3,566 | 1,574 |
| Book value, after specific reserves | $53,238 | $57,167 | $46,185 | $51,850 | $40,232 | $63,298 | $55,411 |
| Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section. |
| PARK NATIONAL CORPORATION · Financial Reconciliations · NON-GAAP RECONCILIATIONS(in thousands, except share and per share data) | PARK NATIONAL CORPORATION · THREE MONTHS ENDEDJune 30, 2026 | PARK NATIONAL CORPORATION · THREE MONTHS ENDEDMarch 31, 2026 | PARK NATIONAL CORPORATION · THREE MONTHS ENDEDJune 30, 2025 | SIX MONTHS ENDEDJune 30, 2026 | SIX MONTHS ENDEDJune 30, 2025 |
|---|---|---|---|---|---|
| Net interest income | $138,857 | $125,780 | $108,991 | $264,637 | $213,368 |
| less purchase accounting accretion | 2,147 | 812 | 168 | 2,959 | 343 |
| less interest income on former Vision Bank relationships | — | 396 | 1,006 | 396 | 2,025 |
| Net interest income - adjusted | $136,710 | $124,572 | $107,817 | $261,282 | $211,000 |
| Provision for credit losses | $4,575 | $2,672 | $2,853 | $7,247 | $3,609 |
| less recoveries on former Vision Bank relationships | — | (7) | (717) | (7) | (1,814) |
| Provision for credit losses - adjusted | $4,575 | $2,679 | $3,570 | $7,254 | $5,423 |
| Other income | $39,540 | $33,728 | $32,186 | $73,268 | $57,932 |
| less gain on sale of debt securities, net | — | 1,084 | — | 1,084 | — |
| less impact of strategic initiatives | 148 | — | 18 | 148 | (896) |
| less Vision related OREO valuation adjustments, net | — | 304 | — | 304 | (229) |
| less other income related to former Vision Bank relationships | — | (202) | — | (202) | 3 |
| Other income - adjusted | $39,392 | $32,542 | $32,168 | $71,934 | $59,054 |
| Other expense | $100,960 | $105,159 | $78,977 | $206,119 | $157,141 |
| less intangible asset amortization | 2,072 | 1,279 | 273 | 3,351 | 547 |
| less merger-related expenses related to First Citizens acquisition | 4,118 | 15,474 | — | 19,592 | — |
| less impact of strategic initiatives | (71) | 362 | — | 291 | — |
| less purchase accounting amortization | 36 | 20 | — | 56 | — |
| less direct expenses related to collection of payments on former Vision Bank loan relationships | — | 194 | 239 | 194 | 515 |
| Other expense - adjusted | $94,805 | $87,830 | $78,465 | $182,635 | $156,079 |
| Tax effect of adjustments to net income identified above (i) | $811 | $3,135 | $(293) | $3,945 | $(420) |
| Net income - reported | $58,752 | $41,687 | $48,119 | $100,439 | $90,276 |
| Net income - adjusted (h) | $61,801 | $53,480 | $47,015 | $115,282 | $88,698 |
| Diluted earnings per common share | $3.23 | $2.39 | $2.97 | $5.64 | $5.56 |
| Diluted earnings per common share, adjusted (h) | $3.40 | $3.06 | $2.90 | $6.47 | $5.47 |
| Annualized return on average assets (a)(b) | 1.84% | 1.43% | 1.92% | 1.64% | 1.81% |
| Annualized return on average assets, adjusted (a)(b)(h) | 1.94% | 1.83% | 1.87% | 1.89% | 1.78% |
| Annualized return on average tangible assets (a)(b)(e) | 1.89% | 1.46% | 1.95% | 1.68% | 1.84% |
| Annualized return on average tangible assets, adjusted (a)(b)(e)(h) | 1.99% | 1.87% | 1.90% | 1.93% | 1.81% |
| Annualized return on average shareholders' equity (a)(b) | 13.69% | 10.67% | 14.96% | 12.25% | 14.22% |
| Annualized return on average shareholders' equity, adjusted (a)(b)(h) | 14.40% | 13.68% | 14.62% | 14.06% | 13.97% |
| Annualized return on average tangible equity (a)(b)(c) | 16.60% | 12.63% | 17.12% | 14.69% | 16.29% |
| Annualized return on average tangible equity, adjusted (a)(b)(c)(h) | 17.46% | 16.21% | 16.73% | 16.86% | 16.01% |
| Efficiency ratio (g) | 56.30% | 65.52% | 55.68% | 60.65% | 57.65% |
| Efficiency ratio, adjusted (g)(h) | 53.55% | 55.55% | 55.78% | 54.50% | 57.52% |
| Annualized net interest margin (g) | 4.81% | 4.80% | 4.75% | 4.80% | 4.69% |
| Annualized net interest margin, adjusted (g)(h) | 4.73% | 4.76% | 4.70% | 4.74% | 4.64% |
| Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section. |
(b) Averages are for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025 and the six months ended June 30, 2026 and June 30, 2025, as appropriate
| PARK NATIONAL CORPORATION · Financial Reconciliations (continued) · (a) Reported measure uses net income · (c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period.RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY: | PARK NATIONAL CORPORATION · (a) Reported measure uses net income · (c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. · RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY: · THREE MONTHS ENDEDJune 30, 2026 | PARK NATIONAL CORPORATION · (a) Reported measure uses net income · (c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. · RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY: · THREE MONTHS ENDEDMarch 31, 2026 | PARK NATIONAL CORPORATION · (a) Reported measure uses net income · (c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. · RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY: · THREE MONTHS ENDEDJune 30, 2025 | (a) Reported measure uses net income · (c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. · SIX MONTHS ENDEDJune 30, 2026 | (a) Reported measure uses net income · (c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. · SIX MONTHS ENDEDJune 30, 2025 |
|---|---|---|---|---|---|
| AVERAGE SHAREHOLDERS' EQUITY | $1,721,078 | $1,585,084 | $1,290,041 | $1,653,457 | $1,280,205 |
| Less: Average goodwill and other intangible assets | 301,545 | 247,015 | 162,664 | 274,431 | 162,800 |
| AVERAGE TANGIBLE EQUITY | $1,419,533 | $1,338,069 | $1,127,377 | $1,379,026 | $1,117,405 |
| (d) Tangible equity divided by common shares outstanding at period end. Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at the end of the period. | |||||
| RECONCILIATION OF TOTAL SHAREHOLDERS' EQUITY TO TANGIBLE EQUITY: | |||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||
| TOTAL SHAREHOLDERS' EQUITY | $1,726,576 | $1,699,759 | $1,294,480 | ||
| Less: Goodwill and other intangible assets | 300,986 | 302,565 | 162,485 | ||
| TANGIBLE EQUITY | $1,425,590 | $1,397,194 | $1,131,995 | ||
| (e) Net income for each period divided by average tangible assets during the period. Average tangible assets equal average assets less average goodwill and other intangible assets, in each case during the applicable period. | |||||
| RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS | |||||
| THREE MONTHS ENDED | SIX MONTHS ENDED | ||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |
| AVERAGE ASSETS | $12,787,409 | $11,840,992 | $10,078,461 | $12,316,815 | $10,062,125 |
| Less: Average goodwill and other intangible assets | 301,545 | 247,015 | 162,664 | 274,431 | 162,800 |
| AVERAGE TANGIBLE ASSETS | $12,485,864 | $11,593,977 | $9,915,797 | $12,042,384 | $9,899,325 |
| (f) Tangible equity divided by tangible assets. Tangible assets equal total assets less goodwill and other intangible assets, in each case at the end of the period. | |||||
| RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS: | |||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||
| TOTAL ASSETS | $12,677,010 | $12,983,967 | $9,949,578 | ||
| Less: Goodwill and other intangible assets | 300,986 | 302,565 | 162,485 | ||
| TANGIBLE ASSETS | $12,376,024 | $12,681,402 | $9,787,093 |
| PARK NATIONAL CORPORATION · Financial Reconciliations (continued) · (g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period.RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME | PARK NATIONAL CORPORATION · (g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period. · RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME · THREE MONTHS ENDEDJune 30, 2026 | PARK NATIONAL CORPORATION · (g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period. · RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME · THREE MONTHS ENDEDMarch 31, 2026 | PARK NATIONAL CORPORATION · (g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period. · RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME · THREE MONTHS ENDEDJune 30, 2025 | (g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period. · RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME · SIX MONTHS ENDEDJune 30, 2026 | (g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period. · RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME · SIX MONTHS ENDEDJune 30, 2025 |
|---|---|---|---|---|---|
| Interest income | $172,327 | $154,777 | $136,496 | $327,104 | $268,696 |
| Fully taxable equivalent adjustment | 933 | 985 | 675 | 1,918 | 1,282 |
| Fully taxable equivalent interest income | $173,260 | $155,762 | $137,171 | $329,022 | $269,978 |
| Interest expense | 33,470 | 28,997 | 27,505 | 62,467 | 55,328 |
| Fully taxable equivalent net interest income | $139,790 | $126,765 | $109,666 | $266,555 | $214,650 |
| (h) Adjustments to net income for each period presented are detailed in the non-GAAP reconciliations of net interest income, provision for credit losses, other income, other expense and tax effect of adjustments to net income. | |||||
| (i) The tax effect of adjustments to net income was calculated assuming a 21% corporate federal income tax rate. | |||||
| (j) Pre-tax, pre-provision ("PTPP") net income is calculated as net income, plus income taxes, plus the provision for credit losses, in each case during the applicable period. PTPP net income is a common industry metric utilized in capital analysis and review. PTPP is used to assess the operating performance of Park while excluding the impact of the provision for credit losses. | |||||
| RECONCILIATION OF PRE-TAX, PRE-PROVISION NET INCOME | |||||
| THREE MONTHS ENDED | SIX MONTHS ENDED | ||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |
| Net income | $58,752 | $41,687 | $48,119 | $100,439 | $90,276 |
| Plus: Income taxes | 14,110 | 9,990 | 11,228 | 24,100 | 20,274 |
| Plus: Provision for credit losses | 4,575 | 2,672 | 2,853 | 7,247 | 3,609 |
| Pre-tax, pre-provision net income | $77,437 | $54,349 | $62,200 | $131,786 | $114,159 |
| (k) Effective January 1, 2023, Park adopted Accounting Standards Update ("ASU") 2022-02. Among other things, this ASU eliminated the concept of troubled debt restructurings ("TDRs"). As a result of the adoption of this ASU and elimination of the concept of TDRs, total nonperforming loans ("NPLs") and total nonperforming assets ("NPAs") each decreased by $20.1 million effective January 1, 2023. Additionally, as a result of the adoption of this ASU, accruing individually evaluated loans decreased by $11.5 million effective January 1, 2023. |