Document

Park cautions that any forward-looking statements contained in this news release or made by management of Park are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties, including those described in Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as updated by our filings with the SEC. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.

Risks and uncertainties that could cause actual results to differ materially include, without limitation: (1) Park's ability to execute our business plan successfully and within the expected timeframe; (2) adverse changes in future economic and financial market conditions; (3) adverse changes in real estate values and liquidity in our primary market areas; (4) the financial health of our commercial borrowers; (5) adverse changes in federal, state and local governmental law and policy, including the regulatory landscape, capital markets, elevated government debt, potential changes in tax legislation, government shutdown, infrastructure spending and social programs; (6) changes in consumer spending, borrowing and saving habits; (7) our litigation and regulatory compliance exposure; (8) increased credit risk and higher credit losses resulting from loan concentrations; (9) competitive pressures among financial services organizations; (10) changes in accounting policies and practices as may be adopted by regulatory agencies; (11) Park's assumptions and estimates used in applying critical accounting policies and modeling which may prove unreliable, inaccurate or not predictive of actual results; (12) Park's ability to anticipate and respond to technological changes and Park's reliance on, and the potential failure of, a number of third-party vendors to perform as expected; (13) failures in or breaches of Park's operational or security systems or infrastructure, or those of our third-party vendors and other service providers; (14) negative impacts on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government-backed debt, as well as issues surrounding the levels of U.S., European and Asian government debt and concerns regarding the growth rates and financial stability of certain sovereign governments, supranationals and financial institutions in Europe and Asia; (15) effects of a fall in stock market prices on Park's asset and wealth management businesses; (16) continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; (17) the impact on Park's business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties; (18) the impact of widespread natural and other disasters, pandemics, dislocations, regional or national protests and civil unrest (including any resulting branch closures or damages), military or terrorist activities or international hostilities on the economy and financial markets generally and on us or our counterparties specifically; (19) the potential further deterioration of the U.S. economy due to financial, political, or other shocks; (20) the effect of healthcare laws in the U.S. and potential changes for such laws that may increase our healthcare and other costs and negatively impact our operations and financial results; (21) the impact of larger or similar-sized financial institutions encountering problems that may adversely affect the banking industry; and (22) other risk factors relating to the financial services industry.


PARK NATIONAL CORPORATION
Financial Highlights
As of or for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023

	2024			2024			2023			Percent change vs.
(in thousands, except common share and per common share data and ratios)	4th QTR			3rd QTR			4th QTR			3Q '24		4Q '23
INCOME STATEMENT:
Net interest income	$	103,445		$	101,114		$	95,074		2.3	%	8.8	%
Provision for credit losses	3,935			5,315			1,809			(26.0)	%	117.5	%
Other income	31,064			36,530			15,519			(15.0)	%	100.2	%
Other expense	83,241			85,681			79,043			(2.8)	%	5.3	%
Income before income taxes	$	47,333		$	46,648		$	29,741		1.5	%	59.2	%
Income taxes	8,703			8,431			5,241			3.2	%	66.1	%
Net income	$	38,630		$	38,217		$	24,500		1.1	%	57.7	%

MARKET DATA:
Earnings per common share - basic (a)	$	2.39		$	2.37		$	1.52		0.8	%	57.2	%
Earnings per common share - diluted (a)	2.37			2.35			1.51			0.9	%	57.0	%
Quarterly cash dividend declared per common share	1.06			1.06			1.05			—	%	1.0	%
Special cash dividend declared per common share	0.50			—			—			N.M.		N.M.
Book value per common share at period end	76.98			76.74			71.06			0.3	%	8.3	%
Market price per common share at period end	171.43			167.98			132.86			2.1	%	29.0	%
Market capitalization at period end	2,770,134			2,713,152			2,141,235			2.1	%	29.4	%

Weighted average common shares - basic (b)	16,156,827			16,151,640			16,113,215			—	%	0.3	%
Weighted average common shares - diluted (b)	16,283,701			16,264,393			16,216,562			0.1	%	0.4	%
Common shares outstanding at period end	16,158,982			16,151,640			16,116,479			—	%	0.3	%

PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b)	1.54		%	1.53		%	0.98		%	0.7	%	57.1	%
Return on average shareholders' equity (a)(b)	12.32		%	12.56		%	8.81		%	(1.9)	%	39.8	%
Yield on loans	6.21		%	6.24		%	5.84		%	(0.5)	%	6.3	%
Yield on investment securities	3.46		%	3.74		%	3.88		%	(7.5)	%	(10.8)	%
Yield on money market instruments	4.75		%	5.38		%	5.30		%	(11.7)	%	(10.4)	%
Yield on interest earning assets	5.82		%	5.88		%	5.48		%	(1.0)	%	6.2	%
Cost of interest bearing deposits	1.90		%	2.06		%	1.84		%	(7.8)	%	3.3	%
Cost of borrowings	3.86		%	3.97		%	4.42		%	(2.8)	%	(12.7)	%
Cost of paying interest bearing liabilities	1.99		%	2.15		%	2.01		%	(7.4)	%	(1.0)	%
Net interest margin (g)	4.51		%	4.45		%	4.17		%	1.3	%	8.2	%
Efficiency ratio (g)	61.60		%	61.98		%	70.93		%	(0.6)	%	(13.2)	%

OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:
Tangible book value per common share (d)	$	66.89		$	66.62		$	60.87		0.4	%	9.9	%
Average interest earning assets	9,176,540			9,100,594			9,120,407			0.8	%	0.6	%
Pre-tax, pre-provision net income (j)	51,268			51,963			31,550			(1.3)	%	62.5	%

Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.




PARK NATIONAL CORPORATION
Financial Highlights (continued)
As of or for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023

										Percent change vs.
(in thousands, except ratios)	December 31, 2024			September 30, 2024			December 31, 2023			3Q '24		4Q '23
BALANCE SHEET:
Investment securities	$	1,100,861		$	1,233,297		$	1,429,144		(10.7)	%	(23.0)	%
Loans	7,817,128			7,730,984			7,476,221			1.1	%	4.6	%
Allowance for credit losses	87,966			87,237			83,745			0.8	%	5.0	%
Goodwill and other intangible assets	163,032			163,320			164,247			(0.2)	%	(0.7)	%
Other real estate owned (OREO)	938			1,119			983			(16.2)	%	(4.6)	%
Total assets	9,805,350			9,903,049			9,836,453			(1.0)	%	(0.3)	%
Total deposits	8,143,526			8,214,671			8,042,566			(0.9)	%	1.3	%
Borrowings	280,083			306,964			517,329			(8.8)	%	(45.9)	%
Total shareholders' equity	1,243,848			1,239,413			1,145,293			0.4	%	8.6	%
Tangible equity (d)	1,080,816			1,076,093			981,046			0.4	%	10.2	%
Total nonperforming loans	69,932			71,541			61,118			(2.2)	%	14.4	%
Total nonperforming assets	70,870			72,660			62,101			(2.5)	%	14.1	%

ASSET QUALITY RATIOS:
Loans as a % of period end total assets	79.72		%	78.07		%	76.01		%	2.1	%	4.9	%
Total nonperforming loans as a % of period end loans	0.89		%	0.93		%	0.82		%	(4.3)	%	8.5	%
Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets	0.91		%	0.94		%	0.83		%	(3.2)	%	9.6	%
Allowance for credit losses as a % of period end loans	1.13		%	1.13		%	1.12		%	—	%	0.9	%
Net loan charge-offs	$	3,206		$	4,653		$	2,666		(31.1)	%	20.3	%
Annualized net loan charge-offs as a % of average loans (b)	0.16		%	0.24		%	0.14		%	(33.3)	%	14.3	%

CAPITAL & LIQUIDITY:
Total shareholders' equity / Period end total assets	12.69		%	12.52		%	11.64		%	1.4	%	9.0	%
Tangible equity (d) / Tangible assets (f)	11.21		%	11.05		%	10.14		%	1.4	%	10.6	%
Average shareholders' equity / Average assets (b)	12.47		%	12.20		%	11.16		%	2.2	%	11.7	%
Average shareholders' equity / Average loans (b)	16.08		%	15.76		%	14.94		%	2.0	%	7.6	%
Average loans / Average deposits (b)	93.00		%	92.69		%	89.48		%	0.3	%	3.9	%

Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.


PARK NATIONAL CORPORATION
Financial Highlights
Year months ended December 31, 2024 and December 31, 2023


(in thousands, except common share and per common share data and ratios)	2024			2023			Percent change vs '23
INCOME STATEMENT:
Net interest income	$	398,019		$	373,113		6.7	%
Provision for credit losses	14,543			2,904			400.8	%
Other income	122,588			92,634			32.3	%
Other expense	321,339			309,239			3.9	%
Income before income taxes	$	184,725		$	153,604		20.3	%
Income taxes	33,305			26,870			23.9	%
Net income	$	151,420		$	126,734		19.5	%

MARKET DATA:
Earnings per common share - basic (a)	$	9.38		$	7.84		19.6	%
Earnings per common share - diluted (a)	9.32			7.80			19.5	%
Quarterly cash dividend declared per common share	4.24			4.20			1.0	%
Special cash dividend declared per common share	0.50			—			N.M.

Weighted average common shares - basic (b)	16,143,708			16,163,500			(0.1)	%
Weighted average common shares - diluted (b)	16,244,797			16,250,019			—	%

PERFORMANCE RATIOS:
Return on average assets (a)(b)	1.53		%	1.27		%	20.5	%
Return on average shareholders' equity (a)(b)	12.65		%	11.55		%	9.5	%
Yield on loans	6.14		%	5.55		%	10.6	%
Yield on investment securities	3.74		%	3.73		%	0.3	%
Yield on money market instruments	5.16		%	5.00		%	3.2	%
Yield on interest earning assets	5.78		%	5.18		%	11.6	%
Cost of interest bearing deposits	1.97		%	1.52		%	29.6	%
Cost of borrowings	4.05		%	3.79		%	6.9	%
Cost of paying interest bearing liabilities	2.08		%	1.67		%	24.6	%
Net interest margin (g)	4.41		%	4.11		%	7.3	%
Efficiency ratio (g)	61.44		%	65.87		%	(6.7)	%

ASSET QUALITY RATIOS:
Net loan charge-offs	$	10,322		$	4,921		109.8	%
Net loan charge-offs as a % of average loans (b)	0.14		%	0.07		%	100.0	%

CAPITAL & LIQUIDITY
Average shareholders' equity / Average Assets (b)	12.09		%	11.02		%	9.7	%
Average shareholders' equity / Average loans (b)	15.69		%	15.19		%	3.3	%
Average loans / Average deposits (b)	92.34		%	86.39		%	6.9	%

OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:
Average interest earning assets	9,085,850			9,171,721			(0.9)	%
Pre-tax, pre-provision net income (j)	199,268			156,508			27.3	%

Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.



PARK NATIONAL CORPORATION
Consolidated Statements of Income

	Three Months Ended				Twelve Month Ended
	December 31				December 31
(in thousands, except share and per share data)	2024		2023		2024		2023

Interest income:
Interest and fees on loans	$	120,870	$	108,495	$	467,602	$	399,795
Interest on debt securities:
Taxable	8,641		13,055		41,718		52,786
Tax-exempt	1,351		2,248		5,524		10,966
Other interest income	2,751		1,408		8,121		8,123
Total interest income	133,613		125,206		522,965		471,670

Interest expense:
Interest on deposits:
Demand and savings deposits	19,802		19,467		82,789		71,776
Time deposits	7,658		6,267		29,594		12,677
Interest on borrowings	2,708		4,398		12,563		14,104
Total interest expense	30,168		30,132		124,946		98,557

Net interest income	103,445		95,074		398,019		373,113

Provision for credit losses	3,935		1,809		14,543		2,904

Net interest income after provision for credit losses	99,510		93,265		383,476		370,209

Other income	31,064		15,519		122,588		92,634

Other expense	83,241		79,043		321,339		309,239

Income before income taxes	47,333		29,741		184,725		153,604

Income taxes	8,703		5,241		33,305		26,870

Net income	$	38,630	$	24,500	$	151,420	$	126,734

Per common share:
Net income - basic	$	2.39	$	1.52	$	9.38	$	7.84
Net income - diluted	$	2.37	$	1.51	$	9.32	$	7.80

Weighted average common shares - basic	16,156,827		16,113,215		16,143,708		16,163,500
Weighted average common shares - diluted	16,283,701		16,216,562		16,244,797		16,250,019

Cash dividends declared:
Quarterly dividend	$	1.06	$	1.05	$	4.24	$	4.20
Special dividend	$	0.50	$	—	$	0.50	$	—



PARK NATIONAL CORPORATION
Consolidated Balance Sheets

(in thousands, except share data)	December 31, 2024		December 31, 2023

Assets

Cash and due from banks	$	122,363	$	160,477
Money market instruments	38,203		57,791
Investment securities	1,100,861		1,429,144
Loans	7,817,128		7,476,221
Allowance for credit losses	(87,966)		(83,745)
Loans, net	7,729,162		7,392,476
Bank premises and equipment, net	69,522		74,211
Goodwill and other intangible assets	163,032		164,247
Other real estate owned	938		983
Other assets	581,269		557,124
Total assets	$	9,805,350	$	9,836,453

Liabilities and Shareholders' Equity

Deposits:
Noninterest bearing	$	2,612,708	$	2,628,234
Interest bearing	5,530,818		5,414,332
Total deposits	8,143,526		8,042,566
Borrowings	280,083		517,329
Other liabilities	137,893		131,265
Total liabilities	$	8,561,502	$	8,691,160


Shareholders' Equity:
Preferred shares (200,000 shares authorized; no shares outstanding at December 31, 2024 and December 31, 2023)	$	—	$	—
Common shares (No par value; 20,000,000 shares authorized; 17,623,104 shares issued at December 31, 2024 and December 31, 2023)	463,706		463,280
Accumulated other comprehensive loss, net of taxes	(46,175)		(66,191)
Retained earnings	977,599		903,877
Treasury shares (1,464,122 shares at December 31, 2024 and 1,506,625 shares at December 31, 2023)	(151,282)		(155,673)
Total shareholders' equity	$	1,243,848	$	1,145,293
Total liabilities and shareholders' equity	$	9,805,350	$	9,836,453



PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
(in thousands)	2024		2023		2024		2023

Assets

Cash and due from banks	$	122,949	$	134,593	$	129,070	$	147,414
Money market instruments	230,591		105,425		157,292		162,544
Investment securities	1,167,467		1,544,942		1,265,680		1,716,037
Loans	7,757,229		7,387,512		7,627,419		7,222,479
Allowance for credit losses	(87,608)		(85,493)		(85,930)		(87,002)
Loans, net	7,669,621		7,302,019		7,541,489		7,135,477
Bank premises and equipment, net	70,615		76,718		72,689		79,443
Goodwill and other intangible assets	163,221		164,466		163,669		164,960
Other real estate owned	1,079		1,342		1,192		1,654
Other assets	582,785		560,683		570,183		550,025
Total assets	$	10,008,328	$	9,890,188	$	9,901,264	$	9,957,554


Liabilities and Shareholders' Equity

Deposits:
Noninterest bearing	$	2,593,128	$	2,694,148	$	2,564,009	$	2,814,259
Interest bearing	5,747,671		5,561,845		5,696,185		5,546,015
Total deposits	8,340,799		8,255,993		8,260,194		8,360,274
Borrowings	279,149		394,423		309,996		371,955
Other liabilities	140,700		136,046		133,954		128,182
Total liabilities	$	8,760,648	$	8,786,462	$	8,704,144	$	8,860,411

Shareholders' Equity:
Preferred shares	$	—	$	—	$	—	$	—
Common shares	462,146		461,864		461,433		460,973
Accumulated other comprehensive loss, net of taxes	(41,229)		(108,219)		(60,619)		(98,154)
Retained earnings	978,267		906,091		949,160		884,711
Treasury shares	(151,504)		(156,010)		(152,854)		(150,387)
Total shareholders' equity	$	1,247,680	$	1,103,726	$	1,197,120	$	1,097,143
Total liabilities and shareholders' equity	$	10,008,328	$	9,890,188	$	9,901,264	$	9,957,554



PARK NATIONAL CORPORATION
Consolidated Statements of Income - Linked Quarters

	2024		2024		2024		2024		2023
(in thousands, except per share data)	4th QTR		3rd QTR		2nd QTR		1st QTR		4th QTR

Interest income:
Interest and fees on loans	$	120,870	$	120,203	$	115,318	$	111,211	$	108,495
Interest on debt securities:
Taxable	8,641		10,228		10,950		11,899		13,055
Tax-exempt	1,351		1,381		1,382		1,410		2,248
Other interest income	2,751		1,996		1,254		2,120		1,408
Total interest income	133,613		133,808		128,904		126,640		125,206

Interest expense:
Interest on deposits:
Demand and savings deposits	19,802		22,762		20,370		19,855		19,467
Time deposits	7,658		7,073		7,525		7,338		6,267
Interest on borrowings	2,708		2,859		3,172		3,824		4,398
Total interest expense	30,168		32,694		31,067		31,017		30,132

Net interest income	103,445		101,114		97,837		95,623		95,074

Provision for credit losses	3,935		5,315		3,113		2,180		1,809

Net interest income after provision for credit losses	99,510		95,799		94,724		93,443		93,265

Other income	31,064		36,530		28,794		26,200		15,519

Other expense	83,241		85,681		75,189		77,228		79,043

Income before income taxes	47,333		46,648		48,329		42,415		29,741

Income taxes	8,703		8,431		8,960		7,211		5,241

Net income	$	38,630	$	38,217	$	39,369	$	35,204	$	24,500

Per common share:
Net income - basic	$	2.39	$	2.37	$	2.44	$	2.18	$	1.52
Net income - diluted	$	2.37	$	2.35	$	2.42	$	2.17	$	1.51



PARK NATIONAL CORPORATION
Detail of other income and other expense - Linked Quarters

	2024		2024		2024		2024		2023
(in thousands)	4th QTR		3rd QTR		2nd QTR		1st QTR		4th QTR

Other income:
Income from fiduciary activities	$	11,122	$	10,615	$	10,728	$	10,024	$	8,943
Service charges on deposit accounts	2,319		2,362		2,214		2,106		2,054
Other service income	3,277		3,036		2,906		2,524		2,349
Debit card fee income	6,511		6,539		6,580		6,243		6,583
Bank owned life insurance income	1,519		2,057		1,565		2,629		1,373
ATM fees	415		471		458		496		517
Pension settlement gain	365		5,783		—		—		—
Loss on sale of debt securities, net	(128)		—		—		(398)		(7,875)
Gain (loss) on equity securities, net	1,852		1,557		358		(687)		353
Other components of net periodic benefit income	2,651		2,204		2,204		2,204		1,893
Miscellaneous	1,161		1,906		1,781		1,059		(671)
Total other income	$	31,064	$	36,530	$	28,794	$	26,200	$	15,519

Other expense:
Salaries	$	37,254	$	38,370	$	35,954	$	35,733	$	36,192
Employee benefits	10,129		10,162		9,873		11,560		10,088
Occupancy expense	2,929		3,731		2,975		3,181		3,344
Furniture and equipment expense	2,375		2,571		2,454		2,583		2,824
Data processing fees	10,450		11,764		9,542		8,808		9,605
Professional fees and services	10,465		7,842		6,022		6,817		7,015
Marketing	1,949		1,464		1,164		1,741		1,716
Insurance	1,600		1,640		1,777		1,718		1,708
Communication	1,104		955		1,002		1,036		993
State tax expense	1,145		1,116		1,129		1,110		1,158
Amortization of intangible assets	288		287		320		320		334
Foundation contributions	—		2,000		—		—		1,000
Miscellaneous	3,553		3,779		2,977		2,621		3,066
Total other expense	$	83,241	$	85,681	$	75,189	$	77,228	$	79,043


PARK NATIONAL CORPORATION
Asset Quality Information

	Year ended December 31,
(in thousands, except ratios)	2024			2023			2022			2021			2020

Allowance for credit losses:
Allowance for credit losses, beginning of period	$	83,745		$	85,379		$	83,197		$	85,675		$	56,679
Cumulative change in accounting principle; adoption of ASU 2022-02 in 2023 and ASU 2016-13 in 2021	—			383			—			6,090			—
Charge-offs	18,334			10,863			9,133			5,093			10,304
Recoveries	8,012			5,942			6,758			8,441			27,246
Net charge-offs (recoveries)	10,322			4,921			2,375			(3,348)			(16,942)
Provision for (recovery of) credit losses	14,543			2,904			4,557			(11,916)			12,054
Allowance for credit losses, end of period	$	87,966		$	83,745		$	85,379		$	83,197		$	85,675

General reserve trends:
Allowance for credit losses, end of period	$	87,966		$	83,745		$	85,379		$	83,197		$	85,675
Allowance on accruing purchased credit deteriorated ("PCD") loans (purchased credit impaired ("PCI") loans for years 2020 and prior)	—			—			—			—			167
Allowance on purchased loans excluded from collectively evaluated loans (for years 2020 and prior)	N.A.			N.A.			N.A.			N.A.			678
Specific reserves on individually evaluated loans	1,299			4,983			3,566			1,616			5,434
General reserves on collectively evaluated loans	$	86,667		$	78,762		$	81,813		$	81,581		$	79,396

Total loans	$	7,817,128		$	7,476,221		$	7,141,891		$	6,871,122		$	7,177,785
Accruing PCD loans (PCI loans for years 2020 and prior)	2,174			2,835			4,653			7,149			11,153
Purchased loans excluded from collectively evaluated loans (for years 2020 and prior)	N.A.			N.A.			N.A.			N.A.			360,056
Individually evaluated loans (k)	53,149			45,215			78,341			74,502			108,407
Collectively evaluated loans	$	7,761,805		$	7,428,171		$	7,058,897		$	6,789,471		$	6,698,169

Asset Quality Ratios:
Net charge-offs (recoveries) as a % of average loans	0.14		%	0.07		%	0.03		%	(0.05)		%	(0.24)		%
Allowance for credit losses as a % of period end loans	1.13		%	1.12		%	1.20		%	1.21		%	1.19		%
General reserve as a % of collectively evaluated loans	1.12		%	1.06		%	1.16		%	1.20		%	1.19		%

Nonperforming assets:
Nonaccrual loans	$	68,178		$	60,259		$	79,696		$	72,722		$	117,368
Accruing troubled debt restructurings (for years 2022 and prior) (k)	N.A.			N.A.			20,134			28,323			20,788
Loans past due 90 days or more	1,754			859			1,281			1,607			1,458
Total nonperforming loans	$	69,932		$	61,118		$	101,111		$	102,652		$	139,614
Other real estate owned	938			983			1,354			775			1,431
Other nonperforming assets	—			—			—			2,750			3,164
Total nonperforming assets	$	70,870		$	62,101		$	102,465		$	106,177		$	144,209
Percentage of nonaccrual loans to period end loans	0.87		%	0.81		%	1.12		%	1.06		%	1.64		%
Percentage of nonperforming loans to period end loans	0.89		%	0.82		%	1.42		%	1.49		%	1.95		%
Percentage of nonperforming assets to period end loans	0.91		%	0.83		%	1.43		%	1.55		%	2.01		%
Percentage of nonperforming assets to period end total assets	0.72		%	0.63		%	1.04		%	1.11		%	1.55		%

Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.


PARK NATIONAL CORPORATION
Asset Quality Information (continued)

	Year ended December 31,
(in thousands, except ratios)	2024		2023		2022		2021		2020

New nonaccrual loan information:
Nonaccrual loans, beginning of period	$	60,259	$	79,696	$	72,722	$	117,368	$	90,080
New nonaccrual loans	65,535		48,280		64,918		38,478		103,386
Resolved nonaccrual loans	57,616		67,717		57,944		83,124		76,098
Nonaccrual loans, end of period	$	68,178	$	60,259	$	79,696	$	72,722	$	117,368

Individually evaluated commercial loan portfolio information (period end): (k)
Unpaid principal balance	$	58,158	$	47,564	$	80,116	$	75,126	$	109,062
Prior charge-offs	5,009		2,349		1,775		624		655
Remaining principal balance	53,149		45,215		78,341		74,502		108,407
Specific reserves	1,299		4,983		3,566		1,616		5,434
Book value, after specific reserves	$	51,850	$	40,232	$	74,775	$	72,886	$	102,973

Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.


PARK NATIONAL CORPORATION
Financial Reconciliations
NON-GAAP RECONCILIATIONS
	THREE MONTHS ENDED									TWELVE MONTHS ENDED
(in thousands, except share and per share data)	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Net interest income	$	103,445		$	101,114		$	95,074		$	398,019		$	373,113
less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions	250			281			124			1,154			633
less interest income on former Vision Bank relationships	38			9			35			54			631
Net interest income - adjusted	$	103,157		$	100,824		$	94,915		$	396,811		$	371,849

Provision for credit losses	$	3,935		$	5,315		$	1,809		$	14,543		$	2,904
less recoveries on former Vision Bank relationships	—			(234)			—			(1,304)			(788)
Provision for credit losses - adjusted	$	3,935		$	5,549		$	1,809		$	15,847		$	3,692

Other income	$	31,064		$	36,530		$	15,519		$	122,588		$	92,634
less loss on sale of debt securities, net	(128)			—			(7,875)			(526)			(7,875)
less pension settlement gain	365			5,783			—			6,148			—
less impact of strategic initiatives	117			—			(1,038)			775			(1,038)
less Vision related OREO valuation adjustments, net	—			1			(370)			115			(370)
less other service income related to former Vision Bank relationships	299			—			40			312			175
Other income - adjusted	$	30,411		$	30,746		$	24,762		$	115,764		$	101,742

Other expense	$	83,241		$	85,681		$	79,043		$	321,339		$	309,239
less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions	288			287			334			1,215			1,323
less Foundation contribution	—			2,000			1,000			2,000			1,000
less special incentive	—			1,700			—			1,700			—
less building demolition costs	44			349			—			458			—
less direct expenses related to collection of payments on former Vision Bank loan relationships	215			—			—			215			100
Other expense - adjusted	$	82,694		$	81,345		$	77,709		$	315,751		$	306,816

Tax effect of adjustments to net income identified above (i)	$	(83)		$	(414)		$	2,188		$	(787)		$	1,991

Net income - reported	$	38,630		$	38,217		$	24,500		$	151,420		$	126,734
Net income - adjusted (h)	$	38,319		$	36,659		$	32,730		$	148,459		$	134,222

Diluted earnings per common share	$	2.37		$	2.35		$	1.51		$	9.32		$	7.80
Diluted earnings per common share, adjusted (h)	$	2.35		$	2.25		$	2.02		$	9.14		$	8.26

Annualized return on average assets (a)(b)	1.54		%	1.53		%	0.98		%	1.53		%	1.27		%
Annualized return on average assets, adjusted (a)(b)(h)	1.52		%	1.47		%	1.31		%	1.50		%	1.35		%

Annualized return on average tangible assets (a)(b)(e)	1.56		%	1.56		%	1.00		%	1.56		%	1.29		%
Annualized return on average tangible assets, adjusted (a)(b)(e)(h)	1.55		%	1.49		%	1.34		%	1.52		%	1.37		%

Annualized return on average shareholders' equity (a)(b)	12.32		%	12.56		%	8.81		%	12.65		%	11.55		%
Annualized return on average shareholders' equity, adjusted (a)(b)(h)	12.22		%	12.05		%	11.76		%	12.40		%	12.23		%

Annualized return on average tangible equity (a)(b)(c)	14.17		%	14.52		%	10.35		%	14.65		%	13.60		%
Annualized return on average tangible equity, adjusted (a)(b)(c)(h)	14.06		%	13.93		%	13.83		%	14.37		%	14.40		%

Efficiency ratio (g)	61.60		%	61.98		%	70.93		%	61.44		%	65.87		%
Efficiency ratio, adjusted (g)(h)	61.63		%	61.55		%	64.48		%	61.31		%	64.28		%

Annualized net interest margin (g)	4.51		%	4.45		%	4.17		%	4.41		%	4.11		%
Annualized net interest margin, adjusted (g)(h)	4.50		%	4.43		%	4.17		%	4.39		%	4.09		%
Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.


PARK NATIONAL CORPORATION
Financial Reconciliations (continued)

(a) Reported measure uses net income
(b) Averages are for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023 and the twelve months ended December 31, 2024 and December 31, 2023, as appropriate
(c) Net income for each period 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.

RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY:
	THREE MONTHS ENDED						TWELVE MONTHS ENDED
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
AVERAGE SHAREHOLDERS' EQUITY	$	1,247,680	$	1,210,565	$	1,103,726	$	1,197,120	$	1,097,143
Less: Average goodwill and other intangible assets	163,221		163,509		164,466		163,669		164,960
AVERAGE TANGIBLE EQUITY	$	1,084,459	$	1,047,056	$	939,260	$	1,033,451	$	932,183

(d) Tangible equity divided by common shares outstanding at period end. Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at the end of the period.

RECONCILIATION OF TOTAL SHAREHOLDERS' EQUITY TO TANGIBLE EQUITY:
	December 31, 2024		September 30, 2024		December 31, 2023
TOTAL SHAREHOLDERS' EQUITY	$	1,243,848	$	1,239,413	$	1,145,293
Less: Goodwill and other intangible assets	163,032		163,320		164,247
TANGIBLE EQUITY	$	1,080,816	$	1,076,093	$	981,046

(e) Net income for each period divided by average tangible assets during the period. Average tangible assets equal average assets less average goodwill and other intangible assets, in each case during the applicable period.

RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS
	THREE MONTHS ENDED						TWELVE MONTHS ENDED
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
AVERAGE ASSETS	$	10,008,328	$	9,920,633	$	9,890,188	$	9,901,264	$	9,957,554
Less: Average goodwill and other intangible assets	163,221		163,509		164,466		163,669		164,960
AVERAGE TANGIBLE ASSETS	$	9,845,107	$	9,757,124	$	9,725,722	$	9,737,595	$	9,792,594

(f) Tangible equity divided by tangible assets. Tangible assets equal total assets less goodwill and other intangible assets, in each case at the end of the period.

RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:
	December 31, 2024		September 30, 2024		December 31, 2023
TOTAL ASSETS	$	9,805,350	$	9,903,049	$	9,836,453
Less: Goodwill and other intangible assets	163,032		163,320		164,247
TANGIBLE ASSETS	$	9,642,318	$	9,739,729	$	9,672,206


PARK NATIONAL CORPORATION
Financial Reconciliations (continued)

(g) 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 reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period.

RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME
	THREE MONTHS ENDED						TWELVE MONTHS ENDED
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Interest income	$	133,613	$	133,808	$	125,206	$	522,965	$	471,670
Fully taxable equivalent adjustment	617		594		838		2,432		3,726
Fully taxable equivalent interest income	$	134,230	$	134,402	$	126,044	$	525,397	$	475,396
Interest expense	30,168		32,694		30,132		124,946		98,557
Fully taxable equivalent net interest income	$	104,062	$	101,708	$	95,912	$	400,451	$	376,839

(h) Adjustments to net income for each period presented are detailed in the non-GAAP reconciliations of net interest income, provision for credit losses, other income, other expense and tax effect of adjustments to net income.
(i) The tax effect of adjustments to net income was calculated assuming a 21% corporate federal income tax rate.
(j) Pre-tax, pre-provision ("PTPP") net income is calculated as net income, plus income taxes, plus the provision for credit losses, in each case during the applicable period. PTPP net income is a common industry metric utilized in capital analysis and review. PTPP is used to assess the operating performance of Park while excluding the impact of the provision for credit losses.

RECONCILIATION OF PRE-TAX, PRE-PROVISION NET INCOME
	THREE MONTHS ENDED						TWELVE MONTHS ENDED
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Net income	$	38,630	$	38,217	$	24,500	$	151,420	$	126,734
Plus: Income taxes	8,703		8,431		5,241		33,305		26,870
Plus: Provision for credit losses	3,935		5,315		1,809		14,543		2,904
Pre-tax, pre-provision net income	$	51,268	$	51,963	$	31,550	$	199,268	$	156,508

(k) Effective January 1, 2023, Park adopted Accounting Standards Update ("ASU") 2022-02. Among other things, this ASU eliminated the concept of troubled debt restructurings ("TDRs"). As a result of the adoption of this ASU and elimination of the concept of TDRs, total nonperforming loans ("NPLs") and total nonperforming assets ("NPAs") each decreased by $20.1 million effective January 1, 2023. Additionally, as a result of the adoption of this ASU, individually evaluated loans decreased by $11.5 million effective January 1, 2023.