Profile: Park National Corp (PRK.A)
10 Dec 2013
Park National Corporation (Park), incorporated on March 24, 1992, is a bank holding company. The Park’s banking operations were conducted through The Park National Bank (Park National Bank) for the year ended December 31, 2012. Park National Bank is engaged in the commercial banking and trust business, generally in small and medium population Ohio communities. As of December 31, 2012, the Bank operated 124 financial service offices in Ohio and Northern Kentucky through eleven banking divisions. On February 16, 2012, the Company and Vision Bank, a state-chartered bank, completed their sale of substantially all of the performing loans, operating assets and liabilities associated with Vision Bank to Centennial Bank, a state-chartered bank which is a wholly owned subsidiary of Home BancShares, Inc. Following the closing of the transactions, Vision Bank merged with and into SE LLC, with SE LLC being the surviving entity.
Park National Bank deals with consumers, as well as with a cross-section of businesses and corporations located primarily in the 28 Ohio counties and one Kentucky county served by the financial service offices of Park National Bank. Relatively few loans are made to borrowers outside these counties. As of December 31, 2012, Park’s subsidiaries had approximately $1,919 million in commercial loans, which included commercial, financial and agricultural loans and commercial real estate loans. Of this amount, approximately $824 million represented commercial, financial and agricultural loans, $1,092 million represented commercial real estate loans and $3 million represented commercial leases.
Commercial loans are made for a variety of general corporate purposes, including financing for industrial and commercial properties, financing for equipment, inventories and accounts receivable, acquisition financing and commercial leasing. The commercial loan portfolio of Park includes loans to a variety of corporations and businesses across many industrial classifications in the 28 Ohio counties and one Kentucky county where Park National Bank operates. Commercial real estate loans (CRE loans) include mortgage loans to developers and owners of commercial real estate. Scope Leasing, Inc. (which does business as Scope Aircraft Finance), a subsidiary of Park National Bank, specializes in aircraft financing. The customers of Scope Aircraft Finance are located throughout the United States. At December 31, 2012, Scope Aircraft Finance had outstanding approximately $180 million in loans primarily secured by aircraft (which are included in the commercial loan portfolio). At December 31, 2012, Park's subsidiaries had outstanding consumer loans (including automobile loans and leases and home equity lines of credit) in an aggregate amount of approximately $652 million, constituting approximately 14.7% of their aggregate total loan portfolio.
As of December 31, 2012, the Company had approximately $1,879 million in construction real estate and residential real estate, representing approximately 42.2% of total loans outstanding.. Of the $1,879 million, approximately $1,713 million was included within the residential real estate loan segment, which included $392 million of commercial loans, $1,065 million of mortgage loans, $213 million of home equity lines of credit and $43 million of installment loans. The remaining $166 million was included within the construction real estate loan segment, which included $131 million of commercial land and development (CL&D) loans and $26 million of 1-4 family residential construction loans.
Park classifies the majority of its securities as available-for-sale (AFS). As of December 31, 2012, the Company’s investment securities portfolio included obligations of the United Sates Treasury and other United Sates Government sponsored entities, obligations of states and political subdivisions, the United Sates Government asset-backed securities, Federal Home Loan Bank stock, Federal Reserve Bank stock and equities.
Sources of Funds
Park’s source of funds is deposits from individuals, businesses and local government entities. These deposits consist of noninterest bearing and interest bearing deposits. Total deposits were $4,716 million at December 31, 2012. Short-term borrowings consist of securities sold under agreements to repurchase, Federal Home Loan Bank advances, federal funds purchased and other borrowings. The average rate paid on short-term borrowings was 0.26%, in 2012. The year-end balance for short-term borrowings was $344 million, as at December 31, 2012. Long-term debt primarily consists of borrowings from the Federal Home Loan Bank and repurchase agreements with investment banking firms. In 2012, average long-term debt was $908 million. Average total debt (long-term and short-term) was $1,166 million in 2012.
Park National Corp
50 North Third Street,
P.O. Box 3500
NEWARK OH 43058-3500