PARK NATIONAL CORP /OH/
For the period ended Mar 31, 2026. Filed May 11, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 11, 2026
PRK$176.95-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-03.
0000805676-25-000086
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0000805676-26-000039
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 182 previous paragraphs and 181 current paragraphs.
61 unchanged; 61 reworded; 57 added; 56 removed; 4 previous and 2 current paragraphs rearranged.
Tables are not compared: 30 previous and 34 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (57)
Current report
Calculation of Non-U.S. GAAP Financial Measures
Current report
Business Combinations: Business combinations are accounted for by applying the acquisition method. As of acquisition date, the identifiable assets acquired and liabilities assumed are measured at fair value and recognized separately from goodwill. The calculation of the core deposit intangible asset and the fair value of loans are based on significant judgments.
Current report
The valuation of core deposit intangibles acquired in business combinations is a critical accounting estimate due to the significant judgment required in estimating deposit attrition, discount rates, the cost of alternative funding sources, and net maintenance costs. These assumptions directly affect the recorded value and amortization of the intangible asset, and changes in assumptions could materially impact future earnings.
Current report
The valuation of loans acquired in a business combination is a critical accounting estimate due to the significant judgment required in estimating expected cash flows, credit losses, and discount rates. Following adoption of ASU 2025‑08, acquired loans are accounted for using a gross‑up approach, with expected credit losses recorded as an adjustment to the loan’s amortized cost basis rather than through a day 1 provision for credit loss expense. Determining the acquisition‑date fair value of these loans involves estimating the principal and interest cash flows expected to be collected, considering a number of factors including the remaining contractual life of the loans, delinquency status, estimated prepayment behavior, payment options and other loan features, internal risk grades, estimated values of underlying collateral, and the prevailing interest rate environment. Changes in these assumptions could materially affect future earnings
Current report
Acquisition of First Citizens
Current report
On the acquisition date, First Citizens had $2.6 billion in total assets, $1.6 billion in total loans, and $2.2 billion in total deposits. The acquisition was valued at $324.1 million and resulted in Park issuing 1,988,131 common shares as merger consideration in exchange for First Citizens outstanding common stock. For the three months ended March 31, 2026, Park recorded merger-related expenses of $15.5 million associated with the First Citizens acquisition.
Current report
The First Citizens acquisition was accounted for under the acquisition method of accounting. Assets acquired and liabilities assumed in the acquisition were recorded at their estimated fair values as of the acquisition date. These estimates were recorded based on preliminary valuations, and these estimates, including the initial accounting for deferred taxes, are considered preliminary as of March 31, 2026, and subject to adjustment for up to one year after the acquisition date.
Current report
In many cases, the determination of fair value required management to make estimates about discount rates, expected future cash flows, market conditions and other future events that are highly subjective in nature and subject to change. While Park believes that the information available on the acquisition date provided a reasonable basis for estimating fair value, additional information may be obtained during the measurement period that would result in changes to the estimated fair value amounts. The measurement period ends on the earlier of one year after the acquisition date or the date Park concludes that all necessary information about the facts and circumstances that existed as of the acquisition date have been obtained. Management anticipates that facts obtained during the measurement period could result in adjustments to the valuation amounts.
Current report
The $21.4 million increase in interest income on loans was primarily the result of a $1.26 billion (or 16.04%) increase in average loans, from $7.83 billion for the three months ended March 31, 2025 to $9.09 billion for the three months ended March 31, 2026, as well as an increase in the yield on loans, which increased 10 basis points to 6.36% for the three months ended March 31, 2026, compared to 6.26% for the three months ended March 31, 2025. Interest income on loans was impacted by the acquisition of First Citizens on February 1, 2026. The newly formed Tennessee region contributed $17.4 million to loan interest income during the three months ended March 31, 2026.
Current report
The $1.2 million increase in interest expense was due to a $3.2 million increase in interest expense on deposits, partially offset by a $2.0 million decrease in interest expense on borrowings.
Current report
The increase in interest expense on deposits was the result of a $1.32 billion (or 22.74%) increase in average on-balance sheet interest bearing deposits from $5.79 billion for the three months ended March 31, 2025, to $7.11 billion for the three months ended March 31, 2026. This increase was partially offset by a decrease in the cost of deposits of 14 basis points, from 1.76% for the three months ended March 31, 2025 to 1.62% for the three months ended March 31, 2026. Interest expense on deposits was impacted by the acquisition of First Citizens which contributed $6.9 million to interest expense on deposits during the three months ended March 31, 2026.
Current report
Other income of $33.7 million for the three months ended March 31, 2026 represented an increase of $8.0 million, or 31.0%, compared to $25.7 million for the three months ended March 31, 2025. Total other income was impacted by the acquisition of First Citizens, which added $2.8 million to total other income for the three months ended March 31, 2026. Refer to the “Other Income” section for additional details regarding the change in other income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Current report
Total other expense of $105.2 million for the three months ended March 31, 2026 represented an increase of $27.0 million compared to $78.2 million for the three months ended March 31, 2025. Included within total other expense are merger-related costs, along with the expanded other expense base that stems from the acquisition of First Citizens. Total other expense for the three months ended 2026 included $15.5 million in merger-related expenses and $10.1 million related to Park's newly formed Tennessee region and other acquired entities. Refer to the “Other Expense” section for additional details regarding the change in other expense for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Current report
Excluding loans outstanding in Park's newly formed Tennessee region, loans outstanding at March 31, 2026 were $8.09 billion, compared to (i) $8.05 billion at December 31, 2025, an increase of $39.7 million, and (ii) $7.88 billion at March 31, 2025, an increase of $207.2 million. The table below breaks out the change in loans outstanding, by loan type.
Current report
Total deposits at March 31, 2026 were $11.00 billion, compared to (i) $8.24 billion at December 31, 2025, an increase of $2.76 billion and (ii) $8.20 billion at March 31, 2025, an increase of $2.80 billion. Total deposits including off balance sheet deposits at March 31, 2026 were $11.00 billion, compared to (i) $8.35 billion at December 31, 2025, an increase of $2.65 billion and (ii) $8.45 billion at March 31, 2025, an increase of $2.55 billion.
Current report
Excluding total deposits in Park's newly formed Tennessee region, total deposits at March 31, 2026 were $8.76 billion, compared to (i) $8.24 billion at December 31, 2025, an increase of $514.3 million and (ii) $8.20 billion at March 31, 2025, an increase of $556.3 million. Total deposits including off balance sheet deposits at March 31, 2026 were $8.76 billion, compared to (i) $8.35 billion at December 31, 2025, an increase of $409.0 million and (ii) $8.45 billion at March 31, 2025, an increase of $305.5 million.
Current report
1 Cost of funds for the three months ended March 31, 2026 and 2025 and for the year ended December 31, 2025.
Current report
(1) Loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $393,000 for the three months ended March 31, 2026 and $270,000 for the same period of 2025.
Current report
(2) Interest income on tax-exempt investment securities includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $592,000 for the three months ended March 31, 2026 and $337,000 for the same period of 2025.
Current report
Average interest bearing liabilities for the first quarter of 2026 increased by $1.17 billion, or 19.3%, to $7.23 billion, compared to $6.06 billion for the first quarter of 2025. The average cost of interest bearing liabilities decreased by 23 basis points to 1.63% for the first quarter of 2026, compared to 1.86% for the first quarter of 2025.
Current report
Interest income and interest expense for the three months ended March 31, 2026 and March 31, 2025, included purchase accounting accretion on loans and deposits, as well as payments received on former Vision Bank impaired loan relationships, some of which were participated with PNB. The tables below show the impact of these items on interest earning assets and interest bearing liabilities.
Current report
(1) Loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $393,000 for the three months ended March 31, 2026.
Current report
(2) Interest income on tax-exempt investment securities includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $592,000 for the three months ended March 31, 2026.
Current report
(1) Loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $270,000 for the three months ended March 31, 2025.
Current report
(2) Interest income on tax-exempt investment securities includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $337,000 for the three months ended March 31, 2025.
Current report
(1) Commercial loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $393,000 for the three months ended March 31, 2026 and $270,000 for the same period of 2025.
Current report
Interest income for the three months ended March 31, 2026 and March 31, 2025, included purchase accounting accretion on loans, as well as payments received on former Vision Bank impaired loan relationships, some of which were participated with PNB. The tables below show the impact on the tax equivalent yield by type of loan excluding the impact of these items.
Current report
(1) Commercial loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $393,000 for the three months ended March 31, 2026 and $270,000 for the same period of 2025.
Current report
Interest expense for the three months ended March 31, 2026 included purchase accounting accretion on deposits. The table below shows the impact on the tax equivalent yield by type of deposit excluding the impact of these items. There was no purchase accounting accretion on deposits for the three months ended March 31, 2025.
Current report
(1) Loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $393,000 for the three months ended March 31, 2026, and $1.1 million, $964,000 and $811,000 for the years ended December 31, 2025, 2024 and 2023, respectively.
Current report
As part of the acquisition of First Citizens, Park recorded a day 1 allowance for credit losses of $15.6 million related to the acquired First Citizens loan portfolio.
Current report
Generally, management obtains updated appraisal information for nonperforming loans and OREO annually. As new appraisal information is received, management performs an evaluation of the appraisal and applies a discount for anticipated disposition costs to determine the net realizable value of the collateral, which is compared to the outstanding principal balance to determine if additional write-downs are necessary.
Current report
OREO as of March 31, 2026 of $24.5 million, represented a $23.7 million increase from $729,000 at December 31, 2025, and an increase of $24.3 million from $119,000 at March 31, 2025. The increase for both the three-month and twelve‑month periods ended March 31, 2026 was attributable to OREO acquired in the First Citizens transaction.
Current report
Collectively Evaluated Loans: The ACL for collectively evaluated loans is primarily determined using either a DCF model or an undiscounted Expected Loss Model for purchased loans. Key inputs and assumptions used in these quantitative models include the selected forecast model, probability of default, loss given default, prepayment and curtailment assumptions, forecast and reversion periods, an the underlying economic forecast. In addition to the quantitative results, management considers whether qualitative adjustments are necessary to appropriately reflect current conditions and other factors not fully captured in the models.
Current report
Qualitative adjustments amounted to $6.5 million and $3.2 million at March 31, 2026 and December 31, 2025, respectively. Significant qualitative adjustments include the following:
Current report
•Helene: Qualitative adjustments included a $583,000 and $561,000 reserve at March 31, 2026 and December 31, 2025, respectively, related to Hurricane Helene which impacted borrowers in Park's Carolina region in October 2024.
Current report
•Former First Citizens loans: Qualitative adjustments included a $3.2 million additional reserve at March 31, 2026 related to the newly acquired First Citizens loan portfolio. The qualitative adjustment reflects risks associated with entry into new markets, the integration of credit administration practices, and a lower quantitative reserve compared to legacy segments. In order to take into consideration all of these factors, management added an additional 20 bps reserve to the affected loans, or $3.2 million, as of March 31, 2026.
Current report
Additional Considerations: As part of its quarterly allowance process, Park evaluates certain industries which are more likely to be under economic stress in the current environment. The non‑bank consumer finance sector has come under pressure as elevated interest rates and broader economic challenges, including inflation, have increased financial strain on consumer borrowers. As of March 31, 2026, Park’s outstanding loans to non‑bank consumer finance companies totaled $268.8 million, of which $20.4 million were categorized as accruing watch list credits and $1.4 million were nonaccrual loans. Watch list and nonaccrual loans within this portfolio are in differing stages of liquidation, and Park expects the associated loan balances to decline as these liquidation processes continue to be executed. Park maintains heightened oversight of this portfolio and continues to monitor it for any indications of deterioration that could adversely affect credit quality.
Current report
Other income of $33.7 million for the three months ended March 31, 2026 represented an increase of $8.0 million, or 31.0%, compared to $25.7 million for the three months ended March 31, 2025. Total other income was impacted by the acquisition of First Citizens, which added $2.8 million to total other income for the three months ended March 31, 2026.
Current report
The $941,000 increase in service charges on deposits was largely due to an increase in non sufficient funds fees and maintenance fees on deposits. The newly formed Tennessee region contributed $842,000 to service charges on deposits for the three months ended March 31, 2026.
Showing the first 40 of 57 passages. Open the source sections for the rest.
Removed paragraphs (56)
Previous report
Recent Developments
Previous report
As of September 30, 2025, First Citizens had $2.6 billion in assets. After the Merger, Park will have more than 100 branches in Kentucky, Ohio, the Carolinas and Tennessee.
Previous report
Under the terms and subject to the conditions of the Merger Agreement, which has been unanimously approved by the Boards of Directors of both companies, each share of common stock of First Citizens that is issued and outstanding immediately prior to the Merger, will be converted into the right to receive 0.52 common shares of Park. Based upon Park’s market close price of October 24, 2025, the aggregate transaction value is approximately $317.3 million.
Previous report
The Merger is expected to close in the first quarter of 2026, subject to customary closing conditions, regulatory approvals and approval of First Citizens’ shareholders.
Previous report
For the Three and Nine Months Ended September 30, 2025 and 2024
Previous report
Net income for the nine months ended September 30, 2025 of $137.4 million represented a $24.6 million, or 21.8%, increase compared to $112.8 million for the nine months ended September 30, 2024. Pre-tax, pre-provision net income for the nine months ended September 30, 2025 of $176.3 million represented a $28.3 million, or 19.1%, increase compared to $148.0 million for the nine months ended September 30, 2024.
Previous report
The table below reflects Park's total other income for the nine months ended September 30, 2025 and 2024.
Previous report
The table below reflects Park's total other expense for the nine months ended September 30, 2025 and 2024.
Previous report
(3) Annualized for the nine months ended September 30, 2025 and 2024.
Previous report
Total deposits at September 30, 2025 were $8.33 billion, compared to (i) $8.14 billion at December 31, 2024, an increase of $186.4 million and (ii) $8.21 billion at September 30, 2024, an increase of $115.3 million. Total deposits including off balance sheet deposits at September 30, 2025 were $8.48 billion, compared to (i) $8.26 billion at December 31, 2024, an increase of $222.0 million and (ii) $8.21 billion at September 30, 2024, an increase of $266.1 million.
Previous report
(1) Loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $281,000 for the three months ended September 30, 2025 and $227,000 for the same period of 2024.
Previous report
(2) Interest income on tax-exempt investment securities includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $404,000 for the three months ended September 30, 2025 and $367,000 for the same period of 2024.
Previous report
Average interest bearing liabilities for the third quarter of 2025 increased by $95.9 million, or 1.6%, to $6,148 million, compared to $6,052 million for the third quarter of 2024. The average cost of interest bearing liabilities decreased by 35 basis points to 1.80% for the third quarter of 2025, compared to 2.15% for the third quarter of 2024.
Previous report
(1) Commercial loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $281,000 for the three months ended September 30, 2025 and $227,000 for the same period of 2024.
Previous report
Comparison for the First Nine Months of 2025 and 2024
Previous report
Net interest income increased by $29.8 million, or 10.1%, to $324.4 million for the first nine months of 2025, compared to $294.6 million for the first nine months of 2024. See the discussion under the table below.
Previous report
(1) Loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $826,000 for the nine months ended September 30, 2025 and $706,000 for the same period of 2024.
Previous report
(2) Interest income on tax-exempt investment securities includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $1.1 million for the both the nine months ended September 30, 2025 and September 30, 2024, respectively.
Previous report
Average interest earning assets for the first nine months of 2025 increased by $228.8 million, or 2.5%, to $9,284 million for the first nine months of 2025, compared to $9,055 million for the first nine months of 2024. The average yield on interest earning assets increased by 13 basis points to 5.90% for the first nine months of 2025, compared to 5.77% for the first nine months of 2024.
Previous report
Loan interest income for the nine months ended September 30, 2025, included $2.0 million in interest related to payments received on certain SEPH nonaccrual loan relationships. Excluding the impact of this interest, for the nine months ended September 30, 2025, the average yield on total loans was 6.29%, the average yield on interest earning assets was 5.87% and the net interest margin was 4.67%.
Previous report
Average interest bearing liabilities for the first nine months of 2025 increased by $84.0 million, or 1.4%, to $6,083 million, compared to $5,999 million for the first nine months of 2024. The average cost of interest bearing liabilities decreased by 28 basis points to 1.83% for the first nine months of 2025, compared to 2.11% for the first nine months of 2024.
Previous report
Yield on Loans: Average loan balances increased $315.6 million, or 4.2%, to $7,899 million for the first nine months of 2025, compared to $7,584 million for the first nine months of 2024. The average yield on the loan portfolio increased by 20 basis points to 6.32% for the first nine months of 2025, compared to 6.12% for the first nine months of 2024.
Previous report
(1) Commercial loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $826,000 for the nine months ended September 30, 2025 and $706,000 for the same period of 2024.
Previous report
Commercial loan interest income for the nine months ended September 30, 2025, included $2.0 million in interest related to payments received on certain SEPH nonaccrual loan relationships. Excluding the impact of this interest, the average tax equivalent yield on commercial loans was 6.25% for the nine months ended September 30, 2025 and the average tax equivalent yield on total loans was 6.29% for the nine months ended September 30, 2025.
Previous report
Cost of Deposits: Average interest bearing deposit balances increased $153.1 million, or 2.7%, to $5,832 million for the first nine months of 2025, compared to $5,679 million for the first nine months of 2024. The average cost of funds on deposit balances decreased by 26 basis points to 1.74% for the first nine months of 2025, compared to 2.00% for the first nine months of 2024. The table below shows for the nine months ended September 30, 2025 and 2024, the average balance and cost of funds by type of deposit.
Previous report
(1) Loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $826,000 for the nine months ended September 30, 2025, and $964,000, $811,000 and $627,000 for the years ended December 31, 2024, 2023 and 2022, respectively.
Previous report
Included in net charge-offs for the three months and nine months ended September 30, 2024 was a $2.9 million charge-off related to one relationship that previously carried a specific reserve.
Previous report
Loans Acquired with Deteriorated Credit Quality: PCD loans are individually evaluated on a quarterly basis to determine if a reserve is necessary. At September 30, 2025 and at December 31, 2024, there was no allowance for credit losses on PCD loans. The carrying amount of accruing loans acquired with deteriorated credit quality at September 30, 2025 and at December 31, 2024 was $2.0 million and $2.2 million, respectively. The carrying amount of nonaccrual loans acquired with deteriorated credit quality at September 30, 2025 and at December 31, 2024 was $525,000 and $551,000, respectively.
Previous report
Additional Considerations: As part of its quarterly allowance process, Park evaluates certain industries which are more likely to be under economic stress in the current environment. The office sector continues to face challenges from adjustments companies have made as a result of the pandemic. Nationally, office properties in downtown and urban business districts are seeing the most stress. As of September 30, 2025, Park had $286.1 million of loans which were fully or partially secured by non-owner-occupied office space, $283.7 million of which were accruing. This portfolio is not currently exhibiting signs of stress, but Park continues to monitor this portfolio, and others, for signs of deterioration.
Previous report
Other income decreased by $5.9 million to $30.6 million for the quarter ended September 30, 2025, compared to $36.5 million for the third quarter of 2024 and decreased $3.0 million to $88.5 million for the first nine months of 2025 compared to $91.5 million for the first nine months of 2024.
Previous report
Service charges on deposit accounts increased by $216,000, or 9.1%, to $2.6 million for the three months ended September 30, 2025, compared to $2.4 million for the same period of 2024 and increased by $817,000, or 12.2%, to $7.5 million for the nine months ended September 30, 2025 compared to $6.7 million for the same period of 2024. The increase for the three months ended September 30, 2025 compared to the same period of 2024 was primarily due to a $317,000 increase in maintenance fees on deposit accounts, partially offset by a decline of $111,000 in NSF income. The increase for the nine months ended September 30, 2025 compared to the same period of 2024 was primarily due to a $1.0 million increase in maintenance fees on deposit accounts, partially offset by a decline of $202,000 in NSF income.
Previous report
Other service income increased by $680,000, or 22.4%, to $3.7 million for the three months ended September 30, 2025, compared to $3.0 million for the same period of 2024 and increased $1.9 million, or 22.6%, to $10.4 million for the nine months ended September 30, 2025 compared to $8.5 million for the same period for the same period of 2024. The primary reasons for the increase for the three months ended September 30, 2025 compared to the same period of 2024 was a $347,000 increase in income related to mortgage loans due to an increase in origination volume and an increase in other commercial loan fee income of $300,000. The primary reasons for the increase for the nine months ended September 30, 2025 compared to the same period of 2024 was a $1.3 million increase in income related to mortgage loans due to an increase in origination volume and an increase in other commercial loan fee income of $369,000.
Previous report
Bank owned life insurance income decreased by $498,000, or 24.2%, to $1.6 million for the three months ended September 30, 2025, compared to $2.1 million for the same period of 2024. Bank owned life insurance income decreased by $1.4 million, or 22.7%, to $4.8 million for the nine months ended September 30, 2025, compared to $6.3 million for the same period of 2024. The decrease for the three-month and nine-month periods ended September 30, 2025 compared to the three-month and nine-month period ended September 30, 2024 was primarily due to a decrease in death benefits received.
Previous report
During the three months and nine months ended September 30, 2024, Park recognized a $5.8 million pension settlement gain due to a combination of lump sum payouts as well as the purchase of a nonparticipating annuity contract which will provide ongoing benefits to vested participants. There was no pension settlement gain recognized during the three months or the nine months ended September 30, 2025.
Previous report
During the nine-month period ended September 30, 2024, Park sold certain AFS debt securities with a book value of $31.2 million at a gross loss of $398,000. There were no sales of debt securities during the three-month period ended September 30, 2024 or the three-month and nine-month periods ended September 30, 2025.
Previous report
(Loss) gain on equity securities, net, changed by $2.1 million, to a net loss of $549,000 for the three months ended September 30, 2025 compared to a net gain of $1.6 million for the same period in 2024. The $2.1 million change for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was related to a $2.4 million change in the (loss) gain on other equity securities which went from a net gain of $700,000 for the three months ended September 30, 2024 to a net loss of $1.7 million for the three months ended September 30, 2025, and a $278,000 change in the gain on equity securities held at NAV, which went from a $857,000 net gain for the three months ended September 30, 2024 to a $1.1 million net gain for the three months ended September 30, 2025.
Previous report
(Loss) gain on equity securities, net, changed by $159,000, to a net gain of $1.1 million for the nine months ended September 30, 2025 compared to a net gain of $1.2 million for the same period in 2024. The $159,000 change for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was related to a $1.1 million change in the gain on other equity securities which went from a net gain of $1.2 million for the nine months ended September 30, 2024 to a net gain of $51,000 for the nine months ended September 30, 2025, and a $943,000 change in the gain on equity securities held at NAV, which went from a $75,000 net gain for the nine months ended September 30, 2024 to a $1.0 million net gain for the nine months ended September 30, 2025.
Previous report
Miscellaneous income increased $682,000, or 35.8%, to $2.6 million for the three months ended September 30, 2025, compared to $1.9 million for the same period in 2024. The increase for the three-month period ended September 30, 2025 compared to the same period of 2024 was largely due to an increase in the net gain on the sale and disposal of assets, which increased from a net loss of $253,000 for the three months ended September 30, 2024 to a net gain of $790,000 for the same period in 2025, largely due to strategic initiatives. The increase was partially offset by an increase in the net loss on repossessed assets of $198,000 for the three-month period ended September 30, 2025 compared to the same period of 2024.
Previous report
Miscellaneous income decreased $1.1 million, or 23.6%, to $3.5 million for the nine months ended September 30, 2025, compared to $4.6 million for the same period in 2024. The decrease was largely due to an increase in the net loss on the sale and disposal of assets which went from a net gain of $378,000 for the nine months ended September 30, 2024 to a net loss of $59,000 for the nine months ended September 30, 2025, largely related to strategic initiatives, along with the net loss on repossessed assets increasing $349,000 for the nine-month period ended September 30, 2025 compared to the same period of 2024.
Previous report
Other expense decreased by $6.2 million, or 7.3%, to $79.5 million for the three months ended September 30, 2025 compared to $85.7 million for the same period of 2024 and decreased $1.5 million, or 0.6%, to $236.6 million for the nine months ended September 30, 2025 compared to $238.1 million for the same period of 2024.
Showing the first 40 of 56 passages. Open the source sections for the rest.
Reworded paragraphs (61)
Previous wording
Management has included in the tables included within the "Items Impacting Comparability" section of this MD&A information relating to the annualized return on average tangible equity, the annualized return on average tangible assets and pre-tax, pre-provision net income for the three months ended September 30, 2025 and September 30, 2024 and for the nine months ended September 30, 2025 and September 30, 2024. For the purpose of calculating the annualized return on average tangible equity, a non-U.S. GAAP financial measure, net income for each period is 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. For the purpose of calculating the annualized return on average tangible assets, a non-U.S. GAAP financial measure, net income for each period is divided by average tangible assets during the period. Average tangible assets equals average assets during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating pre-tax, pre-provision net income, a non-U.S. GAAP financial measure, income taxes and the provision for credit losses are added back to net income, in each case during the applicable period.
Current wording
Management has included in the tables included within the "Items Impacting Comparability" section of this MD&A information relating to the annualized return on average tangible equity, the annualized return on average tangible assets and pre-tax, pre-provision net income for the three months ended March 31, 2026 and March 31, 2025. For the purpose of calculating the annualized return on average tangible equity, a non-U.S. GAAP financial measure, net income for each period is 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. For the purpose of calculating the annualized return on average tangible assets, a non-U.S. GAAP financial measure, net income for each period is divided by average tangible assets during the period. Average tangible assets equals average assets during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating pre-tax, pre-provision net income, a non-U.S. GAAP financial measure, income taxes and the provision for credit losses are added back to net income, in each case during the applicable period.
Previous wording
Allowance for Credit Losses: Park believes the determination of the allowance for credit losses involves a higher degree of judgment and complexity than its other significant accounting estimates. The ACL is calculated with the objective of maintaining a reserve level believed by management to be sufficient to absorb estimated credit losses over the life of an asset or an off-balance sheet credit exposure. Management’s determination of the adequacy of the allowance for credit losses is based on periodic evaluations of past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. However, this evaluation has subjective components requiring material estimates, including expected default probabilities, the expected loss given default, the amounts and timing of expected future cash flows on individually evaluated loans, and estimated losses based on historical loss experience and forecasted economic conditions. All of these factors may be susceptible to significant change. To the extent that actual results differ from management estimates, additional provisions for credit losses may be required that would adversely impact earnings in future periods.
Current wording
Allowance for Credit Losses: Park believes the determination of the allowance for credit losses involves a higher degree of judgment and complexity than its other significant accounting policies. The allowance for credit losses is calculated with the objective of maintaining a reserve level believed by management to be sufficient to absorb estimated credit losses over the life of an asset or an off-balance sheet credit exposure. Management’s determination of the adequacy of the allowance for credit losses is based on periodic evaluations of past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. However, this evaluation has subjective components requiring material estimates, including expected default probabilities, the expected loss given default, the amounts and timing of expected future cash flows on individually evaluated loans, and estimated losses based on historical loss experience and forecasted economic conditions. All of these factors may be susceptible to significant change. To the extent that actual results differ from management estimates, additional provisions for credit losses may be required that would adversely impact earnings in future periods.
Previous wording
One of the significant judgments impacting the ACL is the economic forecasts for Ohio unemployment, Ohio GDP, and Ohio HPI. These economic forecasts inform the regression model used to calculate cash flows during the reasonable and supportable forecast period. Additionally, multiple economic forecast scenarios are weighted to arrive at the quantitative reserve. Changes in the economic forecast or weighting could significantly affect the estimated credit losses which could potentially lead to materially different allowance levels from one reporting period to the next.
Current wording
One of the significant judgments impacting the ACL estimate is the economic forecasts for Ohio unemployment, Ohio GDP, and Ohio HPI. These economic forecasts inform the regression model used to calculate cash flows during the reasonable and supportable forecast period. Additionally, multiple economic forecast scenarios are weighted to arrive at the quantitative reserve. Changes in the economic forecast or weighting could significantly affect the estimated credit losses which could potentially lead to materially different allowance levels from one reporting period to the next.
Previous wording
As noted above, in calculating the ACL, management weighs different scenarios, including a baseline (most likely) scenario and an adverse scenario. At September 30, 2025, management applied a 50% weighting to the baseline scenario and applied a 50% weighting to the adverse scenario. To create hypothetical sensitivity analyses, management calculated a quantitative allowance using a 100% weighting applied to a baseline scenario and a quantitative allowance using a 100% weighting applied to an adverse scenario. The adverse scenario assumes among other things that: (1) Worries that the Israel-Hamas conflict will widen and Russia's invasion of the Ukraine will persist longer than expected. Risk grows that China may block the Taiwan Strait, causing business and consumer confidence to decline. Retaliatory tariffs reduce U.S. exports and lead to a global downturn. (2) Due to continuing concerns about rising inflation, the Federal Reserve raises federal funds rates. However, the Federal Reserve resumes easing rates as the recession persists. (3) Europe goes into a recession as increased tariffs lower exports. Populism in Europe rises, raising uncertainties about the longevity of the Euro zone and causing financial stress to highly indebted nations. These developments further lower U.S. exports and the corporate earnings of foreign subsidiaries of U.S. companies. (4) Impacts of Trump tariffs and deportations are significantly worse than expected. Tariff rates rise from about 2% to 26% and remain at those rates through the end of 2028. Retaliatory tariffs reduce U.S. exports and lead to global turn-down. Tax revenues are lower than in the baseline creating a higher deficit. (5) A recession occurs in the fourth quarter of 2025 and lasts through the second quarter of 2026 resulting in real GDP declining by 2.6%, unemployment rates rising to a peak of 8.4% in the fourth quarter of 2026, and the stock market falling 35% from the third quarter of 2025 to the second quarter of 2026. The adverse scenario also forecasts Ohio unemployment for the next twelve months to range from 7.0% to 9.7%. Excluding consideration of qualitative adjustments, this sensitivity analysis would result in a hypothetical increase in Park's ACL of $30.2 million as of September 30, 2025 if only the adverse scenario was used. Excluding consideration of qualitative adjustments, a corresponding $30.2 million decrease in Park's ACL would occur in a hypothetical scenario if only the baseline (most likely) scenario was used.
Current wording
As noted above, in calculating the ACL, management weighs different scenarios, including a baseline (most likely) scenario and an adverse scenario. At March 31, 2026, management applied a 50% weighting to the baseline scenario and applied a 50% weighting to the adverse scenario. To create hypothetical sensitivity analyses, management calculated a quantitative allowance using a 100% weighting applied to a baseline scenario and a quantitative allowance using a 100% weighting applied to an adverse scenario. The adverse scenario assumes among other things that: (1) Russia’s invasion of Ukraine will persist longer than expected. Risk increases that China might block the Taiwan Strait. Business and consumer confidence declines. Declines in European economies and retaliatory tariffs hurt US exports and corporate earnings in subsidiaries. (2) The conflict between the US and Iran results in the Strait of Hormuz being closed longer than expected causing oil prices to rise to $107 per barrel in Q2 2026 compared to $76 in baseline. (3) The combination of recession and rising inflation cause the Federal Reserve to lower federal funds rates in Q2 2026 but only slightly below baseline for a couple of quarters. As the recession persists and inflation subsides the Federal Reserve subsequently reduces the federal funds rate more significantly. (4) Europe goes into a recession as increased tariffs lower exports. Populism in Europe rises, raising uncertainties about longevity of the Euro zone and causes financial stress to highly indebted nations, especially Italy. These developments further lower US exports and corporate earnings of foreign subsidiaries of US companies. (5) The tariff rate rises to 19%, more than the 11% in baseline, and it remains there through the end of 2028. There is full and permanent extension of the Tax Cuts and Jobs Act with enhancements included in the One Big Beautiful Bill Act. Growth in Medicaid and food assistance funding is reduced but rising health care costs will keep upward pressure on public health spending and the discretionary non-defense budget is capped below historic average. Defense spending is expected to grow. Tax revenues are lower than in the baseline creating a higher deficit and concerns about national debt level raises uncertainty over the course of tax policy. Though no crisis materializes, business and consumer sentiment is damaged. (6) Recession Q1 2026 and lasts through Q4 2026 and real GDP declines by 2.6%. Unemployment rate rises to a peak of 8.5% Q2 2027. Stock market falls 35% from Q1 2026 to Q4 2026. Excluding consideration of qualitative adjustments, this sensitivity analysis would result in a hypothetical increase in Park's ACL of $32.5 million as of March 31,
Previous wording
On October 27, 2025, Park entered into an Agreement and Plan of Merger (the “Merger Agreement”) with First Citizens Bancshares, Inc., a Tennessee corporation (“First Citizens”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, First Citizens will merge with and into Park (the “Merger”), with Park continuing as the surviving corporation in the Merger. Immediately following the Merger, Park will cause First Citizens’ wholly owned banking subsidiary, First Citizens National Bank, a national banking association, to merge with and into PNB, with PNB continuing as the surviving bank.
Current wording
On February 1, 2026, First Citizens Bancshares, Inc., a Tennessee corporation (“First Citizens”) merged into Park, with Park continuing as the surviving corporation. Immediately following the merger, First Citizens National Bank ("FCNB"), a national banking association and a wholly-owned subsidiary of First Citizens, merged into The Park National Bank ("PNB"), with PNB as the surviving bank. FCNB’s former operations now comprise Park’s newly established Tennessee region.
Previous wording
Net income for the three months ended September 30, 2025 of $47.2 million represented a $8.9 million, or 23.4%, increase compared to $38.2 million for the three months ended September 30, 2024. Pre-tax, pre-provision net income for the three months ended September 30, 2025 of $62.1 million represented a $10.2 million, or 19.6%, increase compared to $52.0 million for the three months ended September 30, 2024.
Current wording
Net income for the three months ended March 31, 2026 of $41.7 million represented a $470,000, or 1.1%, decrease compared to $42.2 million for the three months ended March 31, 2025. Pre-tax, pre-provision net income for the three months ended March 31, 2026 of $54.3 million represented a $2.4 million, or 4.6%, increase compared to $52.0 million for the three months ended March 31, 2025.
Previous wording
The following discussion provides additional information regarding Park.
Current wording
The following discussion provides additional information regarding Park's financial results for the first quarter of 2026.
Previous wording
The following table reflects Park's net income for the first, second and third quarters of 2025, for the first nine months of 2025 and 2024 (the nine months ended September 30), and for the year ended December 31, 2024.
Current wording
The following table reflects Park's net income for the first quarters (the three months ended March 31) of 2026 and 2025, and for the years ended December 31, 2025 and 2024.
Previous wording
Net interest income of $324.4 million for the nine months ended September 30, 2025 represented a $29.8 million, or 10.1%, increase compared to $294.6 million for the nine months ended September 30, 2024. The increase was a result of a $18.3 million increase in interest income and a $11.5 million decrease in interest expense.
Current wording
Net interest income of $125.8 million for the three months ended March 31, 2026 represented a $21.4 million, or 20.5%, increase compared to $104.4 million for the three months ended March 31, 2025. The increase was a result of a $22.6 million increase in interest income, partially offset by a $1.2 million increase in interest expense. The $22.6 million increase in interest income was due to a $21.4 million increase in interest income on loans and a $1.2 million increase in investment income.
Previous wording
The $18.3 million increase in interest income was due to a $26.1 million increase in interest income on loans, partially offset by a $7.8 million decrease in investment income. The $26.1 million increase in interest income on loans was primarily the result of a $315.6 million (or 4.16%) increase in average loans, from $7.58 billion for the nine months ended September 30, 2024 to $7.90 billion for the nine months ended September 30, 2025, as well as an increase in the yield on loans, which increased 20 basis points to 6.32% for the nine months ended September 30, 2025, compared to 6.12% for the nine months ended September 30, 2024. The $7.8 million decrease in investment income was primarily the result of a $86.8 million (or 5.90%) decrease in average investments, including money market investments, from $1.47 billion for the nine months ended September 30, 2024 to $1.38 billion for the nine months ended September 30, 2025. The decrease in investment income was also due to a decrease in the yield on investments, including money market investments, which decreased 50 basis points to 3.47% for the nine months ended September 30, 2025, compared to 3.97% for the nine months ended September 30, 2024.
Current wording
The $1.2 million increase in investment income was primarily the result of a $241.7 million (or 17.55%) increase in average investments, including money market investments, from $1.38 billion for the three months ended March 31, 2025 to $1.62 billion for the three months ended March 31, 2026. This increase was partially offset by a decrease in the yield on investments, including money market investments, which decreased 16 basis points to 3.34% for the three months ended March 31, 2026, compared to 3.50% for the three months ended March 31, 2025.
Previous wording
The $11.5 million decrease in interest expense was due to a $8.8 million decrease in interest expense on deposits, as well as a $2.7 million decrease in interest expense on borrowings. The decrease in interest expense on deposits was the result of a decrease in the cost of deposits of 26 basis points, from 2.00% for the nine months ended September 30, 2024 to 1.74% for the nine months ended September 30, 2025. This decrease was partially offset by a $153.1 million (or 2.70%) increase in average on-balance sheet interest bearing deposits from $5.68 billion for the nine months ended September 30, 2024, to $5.83 billion for the nine months ended September 30, 2025. The increase in on-balance sheet interest bearing deposits was due to increases in savings accounts and time deposits, which were partially offset by decreases in transaction accounts and brokered and bid CD deposits. The decrease in interest expense on borrowings was the result of a decrease in the cost of borrowings of 29 basis points, from 4.11% for the nine months ended September 30, 2024 to 3.82% for the nine months ended September 30, 2025 as well as a $69.1 million (or 21.56%) decrease in average borrowings from $320.4 million for the nine months ended September 30, 2024, to $251.3 million for the nine months ended September 30, 2025. The balance of average borrowings was impacted by the redemption of subordinated debt. On September 1, 2025, $175 million of subordinated debt was repaid, followed by an additional repayment of $15 million of subordinated debt on September 30, 2025.
Current wording
The decrease in interest expense on borrowings was the result of a decrease in the cost of borrowings of 186 basis points, from 3.94% for the three months ended March 31, 2025 to 2.08% for the three months ended March 31, 2026 as well as a $149.2 million (or 55.41%) decrease in average borrowings from $269.3 million for the three months ended March 31, 2025, to $120.1 million for the three months ended March 31, 2026. The balance of average borrowings was impacted by the redemption of subordinated debt. On September 1, 2025, $175.0 million of subordinated debt was repaid, followed by an additional repayment of $15.0 million of subordinated debt on September 30, 2025.
Previous wording
The provision for credit losses of $7.6 million for the nine months ended September 30, 2025 represented a decrease of $3.0 million, compared to $10.6 million for the nine months ended September 30, 2024. Refer to the “Credit Metrics and Provision for Credit Losses” section for additional details regarding the level of the provision for credit losses recognized in each period presented.
Current wording
The provision for credit losses of $2.7 million for the three months ended March 31, 2026 represented an increase of $1.9 million, compared to $756,000 for the three months ended March 31, 2025. Refer to the “Credit Metrics and Provision for Credit Losses” section for additional details regarding the level of the provision for credit losses recognized in each period presented.
Previous wording
The table below provides certain balance sheet information and financial ratios for Park as of or for the nine months ended September 30, 2025 and 2024 and the year ended December 31, 2024.
Current wording
The table below provides certain balance sheet information and financial ratios for Park as of or for the three months ended March 31, 2026 and 2025 and the year ended December 31, 2025.
Previous wording
(1) Average assets for the nine months ended September 30, 2025 and 2024 and for the year ended December 31, 2024.
Current wording
(1) Average assets for the three months ended March 31, 2026 and 2025 and for the year ended December 31, 2025.
Previous wording
(2) 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 includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustments were $2.0 million, $1.8 million and $2.4 million for the nine months ended September 30, 2025 and 2024 and the year ended December 31, 2024, respectively.
Current wording
(2) 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 includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustments were $985,000, $607,000 and $2.7 million, respectively, for the three months ended March 31, 2026 and 2025 and the year ended December 31, 2025, respectively.
Previous wording
Loans outstanding at September 30, 2025 were $7.99 billion, compared to (i) $7.82 billion at December 31, 2024, an increase of $175.6 million, and (ii) $7.73 billion at September 30, 2024, an increase of $261.8 million. The table below breaks out the change in loans outstanding, by loan type.
Current wording
Loans outstanding at March 31, 2026 were $9.67 billion, compared to (i) $8.05 billion at December 31, 2025, an increase of $1.62 billion, and (ii) $7.88 billion at March 31, 2025, an increase of $1.78 billion. The table below breaks out the change in loans outstanding, by loan type.
Previous wording
Park's allowance for credit losses was $91.8 million at September 30, 2025, compared to $88.0 million at December 31, 2024, an increase of $3.8 million, or 4.3%. Refer to the “Credit Metrics and Provision for Credit Losses” section for additional information regarding Park's loan portfolio and the level of provision for credit losses recognized in each period presented.
Current wording
Park's allowance for credit losses was $108.6 million at March 31, 2026, compared to $93.0 million at December 31, 2025, an increase of $15.6 million, or 16.8%. Refer to the “Credit Metrics and Provision for Credit Losses” section for additional information regarding Park's loan portfolio and the level of provision for credit losses recognized in each period presented.
Previous wording
In order to manage the impact of deposit growth on its balance sheet, Park utilizes a program where certain deposit balances are transferred off balance sheet while maintaining the customer relationship. Park is able to increase or decrease the amount of deposit balances transferred off balance sheet based on its balance sheet management strategies and liquidity needs.
Current wording
In order to manage the impact of deposit growth on its balance sheet, Park utilized a program where certain deposit balances were transferred off balance sheet while maintaining the customer relationship. Park is able to increase or decrease the amount of deposit balances transferred off balance sheet based on its balance sheet management strategies and liquidity needs.
Previous wording
During the nine months ended September 30, 2025, total deposits including off balance sheet deposits increased by $222.0 million, or 2.7%. This increase consisted of a $414.6 million increase in total commercial deposits and a $35.6 million increase in off balance sheet deposits, partially offset by a $156.6 million decrease in brokered and bid CD deposits and a $71.6 million decrease in retail deposits. The majority of off balance sheet deposits are commercial and thus impact the change in commercial deposits as the deposits are moved on or off the balance sheet.
Current wording
During the three months ended March 31, 2026, total deposits including off balance sheet deposits increased by $2.65 billion, or 31.8%. This increase consisted of a $1.45 billion increase in total commercial deposits, a $1.27 billion increase in retail deposits and a $30.4 million increase in brokered and bid CD deposits, partially offset by a $105.3 million decrease in off balance sheet deposits. The majority of off balance sheet deposits are commercial and thus impact the change in commercial deposits as the deposits are moved on or off the balance sheet.
Previous wording
As of September 30, 2025, Park had approximately $1.5 billion of uninsured deposits, which was 18.1% of total deposits. Uninsured deposits of $1.5 billion included $398.0 million of deposits that were over $250,000, but were fully collateralized by Park's investment securities portfolio.
Current wording
As of March 31, 2026, Park had approximately $2.4 billion of uninsured deposits, which was 21.6% of total deposits. Uninsured deposits of $2.4 billion included $738 million of deposits that were over $250,000, but were fully collateralized by Park's investment securities portfolio.
Previous wording
Comparison for the Third Quarters of 2025 and 2024
Current wording
Comparison for the First Quarters of 2026 and 2025
Previous wording
Net interest income increased by $9.9 million, or 9.8%, to $111.0 million for the third quarter of 2025, compared to $101.1 million for the third quarter of 2024. See the discussion under the table below.
Current wording
Net interest income increased by $21.4 million, or 20.5%, to $125.8 million for the first quarter of 2026, compared to $104.4 million for the first quarter of 2025. See the discussion under the table below.
Previous wording
Average interest earning assets for the third quarter of 2025 increased by $287.7 million, or 3.2%, to $9,388 million for the third quarter of 2025, compared to $9,101 million for the third quarter of 2024. The average yield on interest earning assets increased by 2 basis points to 5.90% for the third quarter of 2025, compared to 5.88% for the third quarter of 2024.
Current wording
Average interest earning assets for the first quarter of 2026 increased by $1.50 billion, or 16.3%, to $10.71 billion for the first quarter of 2026, compared to $9.21 billion for the first quarter of 2025. The average yield on interest earning assets increased by 5 basis points to 5.90% for the first quarter of 2026, compared to 5.85% for the first quarter of 2025.
Previous wording
Yield on Loans: Average loan balances increased $261.1 million, or 3.4%, to $7,942 million for the third quarter of 2025, compared to $7,681 million for the third quarter of 2024. The average yield on the loan portfolio increased by 10 basis points to 6.34% for the third quarter of 2025, compared to 6.24% for the third quarter of 2024.
Current wording
Yield on Loans: Average loan balances increased $1,256.5 million, or 16.0%, to $9,090 million for the first quarter of 2026, compared to $7,833 million for the first quarter of 2025. The average yield on the loan portfolio increased by 10 basis points to 6.36% for the first quarter of 2026, compared to 6.26% for the first quarter of 2025.
Previous wording
Cost of Deposits: Average interest bearing deposit balances increased $166.5 million, or 2.9%, to $5,932 million for the third quarter of 2025, compared to $5,765 million for the third quarter of 2024. The average cost of funds on deposit balances decreased by 32 basis points to 1.74% for the third quarter of 2025, compared to 2.06% for the third quarter of 2024. The table below shows for the three months ended September 30, 2025 and 2024, the average balance and cost of funds by type of deposit.
Current wording
Cost of Deposits: Average interest bearing deposit balances increased $1.32 billion, or 22.7%, to $7.11 billion for the first quarter of 2026, compared to $5.79 billion for the first quarter of 2025. The average cost of funds on deposit balances decreased by 14 basis points to 1.62% for the first quarter of 2026, compared to 1.76% for the first quarter of 2025. The table below shows for the three months ended March 31, 2026 and 2025, the average balance and cost of funds by type of deposit.
Previous wording
Yield on Average Interest Earning Assets: The following table shows the tax equivalent yield on average interest earning assets for the nine months ended September 30, 2025 and for the years ended December 31, 2024, 2023 and 2022.
Current wording
Yield on Average Interest Earning Assets: The following table shows the tax equivalent yield on average interest earning assets for the three months ended March 31, 2026 and for the years ended December 31, 2025, 2024 and 2023.
Previous wording
(2) Interest income on tax-exempt investment securities includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $1.1 million for the nine months ended September 30, 2025, and $1.5 million, $2.9 million and $2.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Current wording
(2) Interest income on tax-exempt investment securities includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustment was $592,000 for the three months ended March 31, 2026, and $1.5 million, $1.5 million and $2.9 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Previous wording
Cost of Average Interest Bearing Liabilities: The following table shows the cost of funds on average interest bearing liabilities for the nine months ended September 30, 2025 and for the years ended December 31, 2024, 2023 and 2022.
Current wording
Cost of Average Interest Bearing Liabilities: The following table shows the cost of funds on average interest bearing liabilities for the three months ended March 31, 2026 and for the years ended December 31, 2025, 2024 and 2023.
Previous wording
The table below provides additional information on the provision for credit losses for the three-month and nine-month periods ended September 30, 2025 and 2024.
Current wording
The table below provides additional information on the provision for credit losses and the ACL for the three-month periods ended March 31, 2026 and 2025.
Previous wording
Included in recoveries for the three months ended September 30, 2025 was $3,000 in recoveries from former Vision Bank loan relationships compared to $234,000 in recoveries for the three months ended September 30, 2024. Included in recoveries for the nine months ended September 30, 2025 was $1.8 million in recoveries from former Vision Bank loan relationships compared to $1.3 million in recoveries for the nine months ended September 30, 2024.
Current wording
Net charge-offs were $2.7 million or 0.12% annualized, of total average loans, for the three months ended March 31, 2026, compared to $592,000 or 0.03% annualized, of total average loans, for the three months ended March 31, 2025. Included in recoveries for the three months ended March 31, 2025 was $1.1 million in recoveries from former Vision Bank loan relationships compared to $7,000 in recoveries for the three months ended March 31, 2026.
Previous wording
The following table provides additional information related to the allowance for credit losses for Park including information related to individual reserves and general reserves, at September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024. Park has determined that any commercial loans which have been placed on nonaccrual status are to be individually evaluated. Additionally, accruing collateral dependent commercial loans to borrowers experiencing financial difficulty are also to be individually evaluated.
Current wording
The following table provides additional information related to the allowance for credit losses for Park including information related to individual reserves and general reserves, at March 31, 2026, December 31, 2025, and March 31, 2025. Park has determined that any commercial loans which have been placed on nonaccrual status are to be individually evaluated. Additionally, accruing collateral dependent commercial loans to borrowers experiencing financial difficulty are also to be individually evaluated and a review of classified credits is performed to identify any additional loans which do not share similar risk characteristics and are to be individually evaluated.
Previous wording
The total allowance for credit losses of $91.8 million at September 30, 2025 represented a $3.8 million, or 4.3%, increase compared to $88.0 million at December 31, 2024. The increase was due to a $2.5 million increase in general reserves and a $1.3 million increase in individual reserves on nonaccrual loans.
Current wording
The total allowance for credit losses of $108.6 million at March 31, 2026 represented a $15.6 million, or 16.8%, increase compared to $93.0 million at December 31, 2025. The increase was due to a $13.3 million increase in general reserves and a $2.3 million increase in specific reserves. The full $15.6 million increase in the allowance for credit losses was attributable to the day 1 allowance recognized in connection with the First Citizens acquisition.
Previous wording
The total allowance for credit losses of $91.8 million at September 30, 2025 represented a $2.0 million, or 2.2%, increase compared to $89.8 million at June 30, 2025. The increase was due to a $1.8 million increase in individual reserves on nonaccrual loans and a $167,000 increase in general reserves.
Current wording
The total allowance for credit losses of $108.6 million at March 31, 2026 represented a $20.5 million, or 23.2%, increase compared to $88.1 million at March 31, 2025. The increase was due to an $18.5 million increase in general reserves and a $2.0 million increase in individual reserves on nonaccrual loans. Of the $20.5 million increase, $15.6 million was attributable to the day 1 allowance recognized in connection with the First Citizens acquisition.
Previous wording
Nonperforming loans as of September 30, 2025 of $90.6 million represented a $25.1 million, or 38.3%, increase from $65.5 million at June 30, 2025. Nonperforming loans as of September 30, 2025 of $90.6 million represented a $20.7 million, or 29.5%, increase from $69.9 million at December 31, 2024. The increase for both the three months and nine month ended September 30, 2025 was primarily attributable to the downgrade of a $22.2 million loan to a non-bank consumer financial company.
Current wording
Nonperforming loans as of March 31, 2026 of $83.1 million represented a $13.9 million, or 20.1%, increase from $69.3 million at December 31, 2025. Nonperforming loans as of March 31, 2026 of $83.1 million represented a $20.0 million, or 31.7%, increase from $63.1 million at March 31, 2025. The increase for both the three-month and twelve‑month periods ended March 31, 2026 was primarily attributable to the inclusion of non‑performing loans acquired in the First Citizens transaction as well as other nonaccrual activity within the legacy Park commercial and mortgage loan portfolios. Of the $83.1 million in nonperforming loans at March 31, 2026, $9.4 million were related to Park's newly formed Tennessee region.
Previous wording
Credit Quality Indicators: When determining the quarterly credit loss provision, Park reviews the grades of commercial loans. These loans are graded from 1 to 8. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans that are pass-rated (graded a 1 through a 4) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher PD is applied to these loans. Commercial loans graded a 6 (substandard), also considered to be watch list credits, represent higher credit risk than those rated special mention and, as a result, a higher PD is applied to these loans. Commercial loans that are graded a 7 (doubtful) are shown as nonperforming and Park charges these loans down to their fair value by taking a partial charge-off or recording an individual reserve. Certain 6-rated loans and all 7-rated loans are placed on nonaccrual status and included within the individually evaluated category. Any commercial loan graded an 8 (loss) is completely charged off.
Current wording
Credit Quality Indicators: When determining the quarterly credit loss provision, Park reviews the grades of commercial loans. These loans are graded from 1 to 8. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans that are pass-rated (graded an 1 through a 4) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher PD is applied to these loans. Commercial loans graded a 6 (substandard), also considered to be watch list credits, represent higher credit risk than those rated special mention and, as a result, a higher PD is applied to these loans. Commercial loans that are graded a 7 (doubtful) are shown as nonperforming and Park charges these loans down to their fair value by taking a partial charge-off or recording an individual reserve. Certain 6-rated loans and all 7-rated loans are placed on nonaccrual status and included within the individually evaluated category. Any commercial loan graded an 8 (loss) is completely charged off.
Previous wording
Park's watch list includes all criticized and classified commercial loans defined by Park as loans rated special mention or worse. Park had $69.1 million of accruing commercial loans included on the watch list at September 30, 2025, compared to $99.9 million at December 31, 2024, and $73.0 million at September 30, 2024. The existing conditions of these loans do not warrant classification as nonaccrual. However, these loans have shown some weakness and management performs additional analysis regarding each borrower's ability to comply with payment terms.
Current wording
Park's watch list includes all criticized and classified commercial loans defined by Park as loans rated special mention or worse. Park had $113.7 million of accruing commercial loans included on the watch list at March 31, 2026, compared to $74.1 million at December 31, 2025, and $94.8 million at March 31, 2025. Of the $113.7 million of accruing commercial loans included on the watch list at March 31, 2026, $56.6 million related to the newly formed Tennessee region. The existing conditions of these loans do not warrant classification as nonaccrual. However, these loans have shown some weakness and management performs additional analysis regarding each borrower's ability to comply with payment terms.
Previous wording
Park considers a loan delinquent when it reaches 30 days past due. Delinquent and accruing loans were $27.8 million, or 0.35%, of total loans at September 30, 2025, compared to $28.4 million, or 0.36% of total loans at December 31, 2024, and $24.9 million or 0.32% of total loans at September 30, 2024.
Current wording
Park considers a loan delinquent when it reaches 30 days past due. Delinquent and accruing loans were $36.3 million, or 0.38%, of total loans at March 31, 2026, compared to $31.4 million, or 0.39% of total loans at December 31, 2025, and $24.2 million or 0.31% of total loans at March 31, 2025.
Previous wording
Individually Evaluated Loans: Loans that do not share risk characteristics are evaluated on an individual basis. Park has determined that any commercial loans which have been placed on nonaccrual status will be individually evaluated. Additionally, accruing collateral dependent commercial loans to borrowers experiencing financial difficulty will be individually evaluated. Individual analysis will establish a reserve for loans in scope. Reserves on individually evaluated commercial loans are typically based on management’s best estimate of the fair value of collateral securing these loans. The amount ultimately charged off for these loans may be different from the reserve as the ultimate liquidation of the collateral may be for an amount different from management’s estimate.
Current wording
Individually Evaluated Loans: Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. Park has determined that any commercial loans which have been placed on nonaccrual status are to be individually evaluated. Additionally, accruing collateral dependent commercial loans to borrowers experiencing financial difficulty are to be individually evaluated and a review of classified credits is performed to identify any additional loans which do not share similar risk characteristics and are to be individually evaluated. Individual analysis establishes an individual reserve for loans in scope. Reserves on individually evaluated commercial loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as appropriate. The amount ultimately charged off for these loans may be different from the reserve as the ultimate liquidation of the collateral may be for an amount different from management’s estimate.
Previous wording
Nonaccrual individually evaluated commercial loans were $72.4 million at September 30, 2025, an increase of $19.3 million, compared to $53.1 million at December 31, 2024 and an increase of $18.8 million, compared to $53.6 million at September 30, 2024. Accruing individually evaluated commercial loans were $15.3 million at December 31, 2024. There were no accruing individually evaluated commercial loans at September 30, 2025 and September 30, 2024, respectively.
Current wording
Nonaccrual individually evaluated commercial loans were $60.2 million at March 31, 2026, an increase of $13.3 million, compared to $46.9 million at December 31, 2025 and an increase of $12.5 million, compared to $47.7 million at March 31, 2025. Of this $60.2 million of nonaccrual individually evaluated commercial loans at March 31, 2026, $7.7 million related to the newly formed Tennessee region. Accruing individually evaluated commercial loans were $14.8 million at March 31, 2026, a decrease of $3.6 million compared to $18.4 million at December 31, 2025 and an increase of $857,000 compared to $13.9 million at March 31, 2025.
Previous wording
At September 30, 2025, Park had taken partial charge-offs of $3.1 million related to the $72.4 million of nonaccrual individually evaluated commercial loans, compared to partial charge-offs of $5.0 million related to the $53.1 million of nonaccrual individually evaluated commercial loans at December 31, 2024.
Current wording
At March 31, 2026, Park had taken partial charge-offs of $4.7 million related to the $60.2 million of nonaccrual individually evaluated commercial loans, compared to partial charge-offs of $4.7 million related to the $46.9 million of nonaccrual individually evaluated commercial loans at December 31, 2025, and compared to partial charge-offs of $3.4 million related to the $47.7 million of nonaccrual individually evaluated commercial loans at March 31, 2025.
Showing the first 40 of 61 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
2026 if only the adverse scenario was used. Excluding consideration of qualitative adjustments, a corresponding $32.5 million decrease in Park's ACL would occur in a hypothetical scenario if only the baseline (most likely) scenario was used.
Current report — wording carried from elsewhere
For the Three Months Ended March 31, 2026 and 2025
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Non-U.S. GAAP Financial Measures
Previous report — wording carried elsewhere
The table below shows the average balance and tax equivalent yield by type of loan for the nine months ended September 30, 2025 and 2024.
Previous report — wording carried elsewhere
Net charge-offs were $2.1 million or 0.10% annualized, of total average loans, for the three months ended September 30, 2025, compared to $4.7 million, or 0.24% annualized, of total average loans, for the three months ended September 30, 2024. Net charge-offs were $3.8 million or 0.07% annualized, of total average loans, for the nine months ended September 30, 2025, compared to $7.1 million, or 0.13% annualized, of total average loans, for the nine months ended September 30, 2024.
Previous report — wording carried elsewhere
Likewise, both short-term borrowings and long-term debt are utilized to fund the growth in earning assets if the growth in deposits and cash flow from operations are not sufficient to do so.