Park National Corporation reports third quarter 2017 financial results
NEWARK, Ohio – Park National Corporation (Park) (NYSE AMERICAN: PRK) today announced financial results for the third quarter and first nine months of 2017 (three and nine months ended September 30, 2017), including continued growth in deposit accounts, commercial loans and consumer loans. Park’s board of directors also declared a quarterly cash dividend of $0.94 per common share, payable on December 8, 2017 to common shareholders of record as of November 17, 2017.
Park’s third quarter of 2017 net income was $22.1 million, a 16.2 percent rise from $19.0 million in the second quarter 2017 and a 9.1 percent increase from the first quarter of 2017 net income results of $20.3 million.
Compared to the third quarter of 2016, Park’s third quarter net income this year is a 19.4 percent decrease from $27.4 million. Third quarter net income per diluted common share was $1.44, compared to $1.78 in the third quarter of 2016. Net income for the first nine months of 2017 was $61.4 million, a 7.1 percent decrease from $66.1 million for the same period in 2016. Net income per diluted common share for the first nine months of 2017 was $3.99, compared to $4.29 for the first nine months of 2016. Financial results in 2016 were influenced by significant recoveries from loans related to Park’s Southeast Property Holdings subsidiary and an overall reduction of the allowance for loan losses.
Park’s community-banking subsidiary, The Park National Bank, reported net income of $21.3 million for the third quarter of 2017, compared to $25.5 million for the third quarter of 2016. The bank’s third quarter 2017 net income was a 5.6 percent rise from $20.2 million in the second quarter 2017 and a 0.9 percent decline from the first quarter of 2017 net income results of $21.5 million. Net income for the first nine months of 2017 was $62.9 million, compared to $68.3 million for the same period in 2016. The bank’s total assets were $7.8 billion at September 30, 2017, rising from $7.4 billion at December 31, 2016.
In the first nine months of 2017, the bank grew consumer loans by $116.2 million (13.8 percent annualized) and commercial loans by $21.9 million (1.1 percent annualized), offset by a reduction in home equity line of credit balances of $5.8 million (3.6 percent annualized) and residential loan balances of $33.7 million (3.7 percent annualized). The bank’s total loans were $5.33 billion at September 30, 2017, a $97.5 million (2.5 percent annualized) increase over $5.23 billion at December 31, 2016.