Park National to Acquire First-Citizens' Ohio Branches

TL;DR

Park National buying Ohio branches from First-Citizens, deal closes Q4 2024.

AI Summary

Park National Corporation announced on April 19, 2024, that it has entered into a definitive agreement to acquire First-Citizens Bank & Trust Company's Ohio branches. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. This acquisition will expand Park National's presence in Ohio.

Why It Matters

This acquisition will allow Park National Corporation to expand its market share and customer base within Ohio, potentially leading to increased revenue and profitability.

Risk Assessment

Risk Level: medium — Acquisitions carry inherent risks, including integration challenges, regulatory approvals, and potential impacts on financial performance.

Key Players & Entities

• Park National Corporation (company) — Registrant
• First-Citizens Bank & Trust Company (company) — Acquiring entity's branches
• Ohio (location) — Geographic focus of acquisition
• Q4 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $35.2 million — he three months ended March 31, 2024 of $35.2 million represented an $1.5 million, or 4.4%, i
• $1.5 m — 1, 2024 of $35.2 million represented an $1.5 million, or 4.4%, increase compared to $3
• $33.7 million — million, or 4.4%, increase compared to $33.7 million for the three months ended March 31, 20
• $44.6 million — he three months ended March 31, 2024 of $44.6 million represented a $4.5 million, or 11.3%, i
• $4.5 m — 31, 2024 of $44.6 million represented a $4.5 million, or 11.3%, increase compared to $
• $40.1 million — million, or 11.3%, increase compared to $40.1 million for the three months ended March 31, 20
• $95.6 million — ,734 $ 148,351 Net interest income of $95.6 million for the three months ended March 31, 20
• $3.4 m — nths ended March 31, 2024 represented a $3.4 million, or 3.7%, increase compared to $9
• $92.2 million — million, or 3.7%, increase compared to $92.2 million for the three months ended March 31, 20
• $15.7 million — 1, 2023. The increase was a result of a $15.7 million increase in interest income, partially
• $12.3 million — interest income, partially offset by a $12.3 million increase in interest expense. 3 The
• $19.6 million — ncrease in interest income was due to a $19.6 million increase in interest income on loans pa
• $3.9 million — t income on loans partially offset by a $3.9 million decrease in investment income. The $19.
• $383.4 million — on loans was primarily the result of a $383.4 million (or 5.40%) increase in average loans, f
• $7.10 billion — 5.40%) increase in average loans, from $7.10 billion for the three months ended March 31, 20

Filing Documents

• prk-20240419.htm (8-K) — 317KB
• exhibit991earningsrelease1.htm (EX-99.1) — 653KB
• imagea.jpg (GRAPHIC) — 18KB
• 0000805676-24-000063.txt ( ) — 1218KB
• prk-20240419.xsd (EX-101.SCH) — 2KB
• prk-20240419_def.xml (EX-101.DEF) — 16KB
• prk-20240419_lab.xml (EX-101.LAB) — 28KB
• prk-20240419_pre.xml (EX-101.PRE) — 16KB
• prk-20240419_htm.xml (XML) — 3KB

02 - Results of Operations and Financial Condition

Item 2.02 - Results of Operations and Financial Condition On April 19, 2024, Park National Corporation ("Park") issued a news release (the "Financial Results News Release") announcing financial results for the three months ended March 31, 2024. A copy of the Financial Results News Release is included as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein. Non-U.S. GAAP Financial Measures Item 7.01 of this Current Report on Form 8-K as well as the Financial Results News Release contain non-U.S. GAAP (generally accepted accounting principles in the United States or "U.S. GAAP") financial measures where management believes them to be helpful in understanding Park's results of operations or financial position. Where non-U.S. GAAP financial measures are used, the comparable U.S. GAAP financial measures, as well as the reconciliation from the comparable U.S. GAAP financial measures, can be found in the Financial Results News Release. Items Impacting Comparability of Period Results From time to time, revenue, expenses and/or taxes are impacted by items judged by management of Park to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their impact is believed by management of Park at that time to be infrequent or short-term in nature. Most often, these items impacting comparability of period results are due to merger and acquisition activities and revenue and expenses related to former Vision Bank loan relationships. In other cases, they may result from management's decisions associated with significant corporate actions outside of the ordinary course of business. Even though certain revenue and expense items are naturally subject to more volatility than others due to changes in market and economic environment conditions, as a general rule, volatility alone does not result in the inclusion of an item as one impacting comparabilit

01 - Regulation FD Disclosure

Item 7.01 - Regulation FD Disclosure Financial Results Net income for the three months ended March 31, 2024 of $35.2 million represented an $1.5 million, or 4.4%, increase compared to $33.7 million for the three months ended March 31, 2023. Pre-tax, pre-provision net income for the three months ended March 31, 2024 of $44.6 million represented a $4.5 million, or 11.3%, increase compared to $40.1 million for the three months ended March 31, 2023. Net income for each of the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, included several items of income and expense that impacted comparability of period results. These items are detailed in the "Financial Reconciliations" section within the Financial Results News Release. The following discussion provides additional information regarding Park. Park National Corporation (Park) The following table reflects the net income for the first quarters (the three months ended March 31) of 2024 and 2023, and for the years ended December 31, 2023 and 2022. (In thousands) Q1 2024 Q1 2023 2023 2022 Net interest income $ 95,623 $ 92,198 $ 373,113 $ 347,059 Provision for credit losses 2,180 183 2,904 4,557 Other income 26,200 24,387 92,634 135,935 Other expense 77,228 76,503 309,239 297,978 Income before income taxes $ 42,415 $ 39,899 $ 153,604 $ 180,459 Income tax expense 7,211 6,166 26,870 32,108 Net income $ 35,204 $ 33,733 $ 126,734 $ 148,351 Net interest income of $95.6 million for the three months ended March 31, 2024 represented a $3.4 million, or 3.7%, increase compared to $92.2 million for the three months ended March 31, 2023. The increase was a result of a $15.7 million increase in interest income, partially offset by a $12.3 million increase in interest expense. 3 The $15.7 million increase in interest income was due to a $19.6 million increase in interest income on loans partially offset by a $3.9 million decrease in investment income. The $19.6 million increase in interest

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