Park National Corporation (PRK) Bundle
A Brief History of Park National Corporation
Company Overview
Park National Corporation operates as a bank holding company that provides a range of financial services through its banking and non-banking subsidiaries. The company has experienced steady growth over the years, focusing on community banking and local customer relationships.
Financial Performance in 2024
As of September 30, 2024, Park National Corporation reported a total net income of $112.8 million for the nine months ended, reflecting an increase from $102.2 million for the same period in 2023. The diluted earnings per share (EPS) for the period were $6.95, compared to $6.29 in 2023.
Key Financial Figures
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $112.8 | $102.2 |
| Diluted EPS | $6.95 | $6.29 |
| Return on Average Assets | 1.53% | 1.37% |
| Return on Average Shareholders' Equity | 12.77% | 12.48% |
Balance Sheet Highlights
As of September 30, 2024, total assets were reported at $9.9 billion, compared to $9.8 billion at the end of 2023. Total liabilities stood at $8.66 billion, while total shareholders' equity increased to $1.24 billion.
Loan Portfolio
As of September 30, 2024, total loans amounted to $7.73 billion, reflecting a 3.4% increase from $7.48 billion at December 31, 2023. The company reported a net interest income of $294.57 million for the nine months ended September 30, 2024.
Dividends and Shareholder Returns
Park National Corporation has maintained a consistent dividend policy, declaring dividends of $1.06 per common share for the first three quarters of 2024, totaling $51.9 million paid out in cash dividends.
Operational Metrics
| Operational Metric | 2024 | 2023 |
|---|---|---|
| Net Interest Margin | 4.45% | 4.12% |
| Efficiency Ratio | 61.98% | 63.25% |
Market Position and Strategy
Park National Corporation continues to focus on organic growth through enhancing customer relationships and expanding its service offerings in community banking. The company has also been active in managing its credit risks, with nonperforming loans recorded at $71.5 million as of September 30, 2024.
Outlook
Looking ahead, Park National Corporation aims to strengthen its market position by leveraging technology and improving operational efficiencies. The bank's commitment to community service remains central to its growth strategy.
A Who Owns Park National Corporation (PRK)
Major Shareholders
As of 2024, the ownership structure of Park National Corporation (PRK) includes a mix of institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.5% |
| Institutional Investor | BlackRock, Inc. | 7.2% |
| Institutional Investor | State Street Corporation | 4.9% |
| Individual Investor | James G. Cummings | 5.3% |
| Individual Investor | Board Members and Executives | 2.1% |
| Other Investors | Various Individuals and Institutions | 71.0% |
Executive Ownership
Executive ownership is also significant for Park National Corporation. Key executives hold a considerable number of shares, influencing corporate governance and decision-making. The following table provides details on executive shareholdings:
| Executive | Position | Shares Owned |
|---|---|---|
| John A. Hutton | President & CEO | 150,000 |
| Mary E. Smith | CFO | 75,000 |
| Robert J. Brown | COO | 50,000 |
| Linda K. Johnson | SVP | 30,000 |
Recent Stock Performance
The stock performance of Park National Corporation has seen fluctuations in 2024. The following table outlines the stock price data for 2024:
| Quarter | Opening Price | Closing Price | Dividend Paid |
|---|---|---|---|
| Q1 2024 | $120.50 | $125.00 | $1.06 |
| Q2 2024 | $126.00 | $130.00 | $1.06 |
| Q3 2024 | $130.50 | $135.00 | $1.06 |
Market Capitalization
As of September 30, 2024, Park National Corporation's market capitalization stood at approximately $2 billion, reflecting its position in the financial services sector.
Shareholder Engagement
Park National Corporation maintains a robust engagement strategy with its shareholders, focusing on transparency and communication. Shareholder meetings are held quarterly, and the company regularly provides updates on financial performance and strategic initiatives.
Ownership Trends
Over the past year, there has been a noticeable trend in ownership shifts, with increased interest from institutional investors. The following table illustrates the changes in institutional ownership from 2023 to 2024:
| Year | Institutional Ownership Percentage |
|---|---|
| 2023 | 18.5% |
| 2024 | 20.6% |
Park National Corporation (PRK) Mission Statement
Overview of Mission Statement
The mission of Park National Corporation is to provide exceptional financial services while fostering strong relationships with clients, employees, and communities. The corporation emphasizes a commitment to integrity, customer satisfaction, and community engagement.
Financial Performance Metrics
As of September 30, 2024, Park National Corporation reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Income (9 months) | $112.8 million |
| Net Interest Income (9 months) | $294.6 million |
| Total Assets | $9.90 billion |
| Total Deposits | $8.21 billion |
| Total Loans | $7.73 billion |
| Return on Average Assets | 1.53% |
| Efficiency Ratio | 61.38% |
| Dividends Paid | $52.3 million |
| Common Shares Outstanding | 16,231,766 |
Core Values
- Integrity: Upholding the highest standards of ethics in all operations.
- Customer Focus: Prioritizing the needs and satisfaction of clients.
- Community Engagement: Actively participating in and supporting local communities.
- Innovation: Embracing new technologies and practices to enhance service delivery.
Recent Strategic Initiatives
In 2024, Park National Corporation has undertaken several strategic initiatives to align with its mission, including:
- Expansion of digital banking services to enhance customer experience.
- Investment in community development projects totaling $5 million.
- Implementation of employee training programs to improve service quality.
- Increase in sustainable practices within corporate operations.
Community Impact
Park National Corporation remains committed to its community impact, with significant contributions in 2024:
| Community Initiative | Amount Contributed |
|---|---|
| Local Education Programs | $1.5 million |
| Small Business Grants | $2 million |
| Health and Wellness Initiatives | $1 million |
| Environmental Sustainability Projects | $500,000 |
Conclusion of Financial Overview
As of September 30, 2024, Park National Corporation continues to demonstrate strong financial health and a commitment to its mission through strategic initiatives, community engagement, and a focus on customer satisfaction.
How Park National Corporation (PRK) Works
Overview of Operations
Park National Corporation (PRK) operates as a bank holding company and provides a variety of financial services through its subsidiaries. The company primarily focuses on commercial and retail banking, investment management, and fiduciary services. As of September 30, 2024, Park National's total assets reached approximately $9.90 billion.
Financial Performance
For the nine months ended September 30, 2024, Park National reported a net income of $112.8 million, representing a 10.3% increase from $102.2 million for the same period in 2023.
| Period | Net Income (in thousands) | Pre-tax, Pre-provision Net Income (in thousands) | Weighted Average Diluted Shares |
|---|---|---|---|
| Q3 2024 | 38,217 | 51,963 | 16,264,393 |
| Q2 2024 | 39,369 | 48,329 | 16,261,109 |
| Q1 2024 | 35,204 | 42,415 | 16,231,766 |
| YTD 2024 | 112,790 | 148,000 | 16,231,766 |
| YTD 2023 | 102,234 | 125,000 | 16,261,109 |
Net Interest Income
Net interest income, a key revenue source, totaled $294.6 million for the nine months ended September 30, 2024, reflecting a 5.9% increase compared to $278.0 million in the same period of 2023. The increase was driven by a rise in interest income of $42.9 million, partially offset by a $26.4 million increase in interest expense.
Loan Portfolio
As of September 30, 2024, loans outstanding were approximately $7.73 billion, representing an increase of $254.8 million or 3.4% from $7.48 billion at December 31, 2023.
| Loan Type | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) | September 30, 2023 (in thousands) |
|---|---|---|---|
| Home Equity | 197,470 | 174,621 | 173,570 |
| Installment | 1,961,680 | 1,950,304 | 1,977,750 |
| Real Estate | 1,423,120 | 1,340,169 | 1,295,769 |
| Commercial | 4,146,473 | 4,007,941 | 3,897,821 |
| Other | 2,241 | 3,186 | 4,835 |
| Total Loans | 7,730,984 | 7,476,221 | 7,349,745 |
Deposits
Total deposits amounted to $8.21 billion as of September 30, 2024, an increase of $172.1 million from $8.04 billion at December 31, 2023.
| Deposit Type | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) | September 30, 2023 (in thousands) |
|---|---|---|---|
| Non-interest Bearing | 2,516,722 | 2,628,234 | 2,732,504 |
| Transaction Accounts | 2,141,208 | 2,064,512 | 2,193,054 |
| Savings | 2,743,507 | 2,543,220 | 2,716,001 |
| Certificates of Deposit | 722,236 | 641,615 | 603,165 |
| Brokered and Bid CDs | 90,998 | 164,985 | — |
| Total Deposits | 8,214,671 | 8,042,566 | 8,244,724 |
Capital Resources
As of September 30, 2024, total shareholders’ equity was $1.24 billion, or 12.5% of total assets, compared to $1.15 billion, or 11.6% of total assets, at December 31, 2023.
| Capital Ratio Type | Park National Corporation | Minimum Required |
|---|---|---|
| Leverage Ratio | 11.43% | 4.00% |
| Tier 1 Risk-Based Capital Ratio | 13.33% | 6.00% |
| Total Risk-Based Capital Ratio | 16.50% | 8.00% |
Efficiency and Return Metrics
The efficiency ratio for the nine months ended September 30, 2024 was 61.38%, compared to 65.87% for the same period in 2023. The return on average assets was 1.53% for the nine months ended September 30, 2024, marking a significant increase from 1.27% for the year ended December 31, 2023.
How Park National Corporation (PRK) Makes Money
Net Interest Income
Park National Corporation's primary source of revenue is net interest income, which is the difference between total interest income and total interest expense. For the nine months ended September 30, 2024, net interest income amounted to $294.6 million, an increase of $16.5 million or 5.9% compared to the same period in 2023.
| Period | Net Interest Income (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|
| Q3 2024 | $101,114 | $6,801 | 7.3% |
| Q3 2023 | $94,313 | - | - |
| YTD 2024 | $294,574 | $16,535 | 5.9% |
| YTD 2023 | $278,039 | - | - |
Loan Portfolio
As of September 30, 2024, Park National's loans outstanding reached $7.73 billion, reflecting an increase of $254.8 million or 3.4% from December 31, 2023. The composition of the loan portfolio is critical for generating interest income.
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial Loans | $3,200,000 |
| Residential Mortgages | $2,500,000 |
| Consumer Loans | $1,330,984 |
Other Income Sources
Park National also generates revenue through various other income streams. For the nine months ended September 30, 2024, total other income was $91.5 million, an increase of $14.4 million or 18.7% compared to 2023.
| Income Source | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Fiduciary Activities | $31,367 | $26,531 | $4,836 | 18.2% |
| Service Charges on Deposit Accounts | $6,682 | $6,391 | $291 | 4.6% |
| Debit Card Fee Income | $19,362 | $19,939 | ($577) | (2.9%) |
| Bank Owned Life Insurance Income | $6,251 | $3,965 | $2,286 | 57.7% |
| Pension Settlement Gain | $5,783 | $0 | $5,783 | N.M. |
Deposits and Funding
Total deposits as of September 30, 2024, were $8.21 billion, showing a slight decrease of $30.8 million or 0.4% from the previous year. The funding structure supports the bank's lending activities.
| Deposit Type | Amount (in thousands) | Change from 2023 (in thousands) |
|---|---|---|
| Retail Deposits | $3,943,537 | ($167,284) |
| Commercial Deposits | $4,180,136 | $46,233 |
| Brokered Deposits | $90,998 | $90,998 |
Financial Performance Metrics
Park National Corporation's efficiency ratio for the nine months ended September 30, 2024, improved to 61.38%, down from 64.29% in 2023. The return on average assets (ROAA) was 1.53% for the same period, an increase from 1.37% in the previous year.
| Metric | 2024 | 2023 |
|---|---|---|
| Efficiency Ratio | 61.38% | 64.29% |
| Return on Average Assets | 1.53% | 1.37% |
Park National Corporation (PRK) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Park National Corporation (PRK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Park National Corporation (PRK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Park National Corporation (PRK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.