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PARK NATIONAL CORP /OH/ (PRK)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 delivered strong profitability: diluted EPS $2.92, up 24% y/y; net income $47.2M, up 23% y/y, with NIM 4.72% and efficiency ratio 55.85% .
  • Versus consensus, EPS beat by $0.19 ($2.92 actual vs $2.74 estimate) while revenue modestly missed ($137.6M actual vs ~$140.1M estimate). Bold: EPS beat; revenue slight miss*.
  • Asset quality tightened: nonperforming loans rose to 1.13% of loans (90.6M), up from 0.82% in Q2 and 0.93% in Q3’24, while annualized net charge-offs remained low at 0.10% .
  • Capital return and strategic catalysts: Board declared $1.07 quarterly dividend and a special $1.25 dividend (payable Dec 10, 2025) and announced all‑stock acquisition of First Citizens Bancshares (FIZN) at 0.52x PRK shares, expected ~15% EPS accretion in 2026 .

What Went Well and What Went Wrong

What Went Well

  • Net interest income continued to grow sequentially (+1.9% q/q to $111.0M); NIM sustained at 4.72% (vs 4.75% in Q2), underscoring disciplined balance sheet management .
  • Deposit momentum: period‑end deposits rose 1.1% q/q and 1.4% y/y, supported by commercial relationships and off‑balance sheet deposit program utilization .
  • Management confidence and execution: “Our performance is sustained by the strength of our team…” — CEO David L. Trautman; “continued momentum… disciplined expense management” — President Matthew R. Miller .

What Went Wrong

  • Nonperforming loans/inventory increased materially: NPLs to 1.13% of loans (up from 0.82% in Q2), with total NPLs at $90.6M; nonperforming assets rose to $91.2M .
  • Other income softened q/q (-5.0% to $30.6M) amid lower miscellaneous/equity gains vs Q2; bank‑owned life insurance and other line items were mixed .
  • Revenue slightly below consensus (~$137.6M actual vs ~$140.1M estimate), reflecting pressure from lower investment yields (3.04% vs 3.21% in Q2) despite solid loan yields (6.34%) *.

Financial Results

Income Statement (USD Millions unless noted)

MetricQ3 2024Q2 2025Q3 2025
Net Interest Income$101.1 $109.0 $111.0
Provision for Credit Losses$5.3 $2.9 $4.0
Other Income$36.5 $32.2 $30.6
Other Expense$85.7 $79.0 $79.5
Net Income$38.2 $48.1 $47.2
EPS (Diluted)$2.35 $2.97 $2.92

Key Ratios (annualized)

MetricQ3 2024Q2 2025Q3 2025
Net Interest Margin4.45% 4.75% 4.72%
Efficiency Ratio61.98% 55.68% 55.85%
ROA1.53% 1.92% 1.83%
ROE12.56% 14.96% 14.19%

Balance Sheet

MetricQ3 2024Q2 2025Q3 2025
Loans$7,731 $7,963 $7,993
Deposits$8,215 $8,238 $8,330
Borrowings$307 $286 $78
Shareholders’ Equity$1,239 $1,294 $1,332

Asset Quality

MetricQ3 2024Q2 2025Q3 2025
Nonperforming Loans ($)$71.5 $65.5 $90.6
NPLs / Loans0.93% 0.82% 1.13%
Allowance / Loans1.13% 1.13% 1.15%
Net Charge-offs ($)$4.65 $1.20 $2.06
Annualized NCOs / Avg Loans0.24% 0.06% 0.10%

KPIs

MetricQ3 2024Q2 2025Q3 2025
Book Value / Share$76.74 $80.55 $82.87
Tangible Book / Share$66.62 $70.44 $72.77
Weighted Avg Shares – Diluted (M)16.26 16.22 16.17

Estimates vs Actuals

MetricQ3 2025 ConsensusQ3 2025 ActualBeat/Miss
EPS (Primary)$2.74*$2.92 Beat*
Revenue ($USD)$140.1M*$137.6M*Miss*

Values with asterisks retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly Dividend per ShareQ4 2025 (payable 12/10/25)$1.07 (maintained) $1.07 (declared) Maintained
Special Dividend per ShareQ4 2025 (payable 12/10/25)None$1.25 (declared) Raised (new special)
Strategic M&A – FIZNClose expected Q1 2026N/A0.52 PRK shares per FIZN share; ~15% 2026 EPS accretion expected; slightly accretive to TBV New transaction

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available in the document set.

TopicPrevious Mentions (Q1–Q2 2025)Current Period (Q3 2025)Trend
Margin/NIINIM improved to 4.75% in Q2; net interest income up 10–11% y/y NIM held at 4.72%; NII +9.8% y/y Stable, strong
Deposits & LiquidityOff‑balance sheet deposit program; total deposits incl. off‑balance +2.8% YTD Deposits +1.1% q/q; continued use of off‑balance deposits Improving
Asset QualityNPLs at 0.82% (Q2); monitoring office CRE exposure ($285.5M) NPLs rose to 1.13%; nonaccruals up q/q Deteriorating
Noninterest IncomeFiduciary income strength; other income +5.3% YTD through Q2 Other income −5.0% q/q; mix softer Mixed
Strategic Actions—Announced FIZN merger to expand TN footprint Positive catalyst

Management Commentary

  • “Our performance is sustained by the strength of our team and the faith our customers place in us… we remain focused on deepening relationships… and delivering consistent, long‑term results” — David L. Trautman, Chairman & CEO .
  • “Third quarter results reflect continued momentum… disciplined expense management… and unwavering commitment to execution” — Matthew R. Miller, President .
  • “Partnering with Park is a natural and strategic step forward… Together, we’re building a stronger, more impactful organization” — Jeff Agee, FIZN Chairman & CEO .
  • “We’ve long seen Tennessee as a compelling market… This partnership aligns with our long‑term growth strategy” — Matthew R. Miller, President .

Q&A Highlights

No Q3 2025 earnings call transcript found; no Q&A highlights available from company documents.

Estimates Context

  • EPS beat: Actual diluted EPS $2.92 vs consensus ~$2.74, supported by resilient NIM and low funding costs (cost of interest‑bearing deposits 1.74%) *.
  • Revenue miss: Actual ~$137.6M vs consensus ~$140.1M, with investment securities yield down to 3.04% (from 3.21% in Q2), partially offset by loan yield at 6.34% *.
  • Street targets: Consensus target price ~$180.33 with 3 covering estimates; recommendation text not provided*.

Values with asterisks retrieved from S&P Global.

Key Takeaways for Investors

  • Quality beat on EPS despite a small revenue shortfall; margin resilience remains intact (NIM 4.72%) .
  • Watch credit: NPL ratio rose to 1.13% and nonaccruals increased; however, allowance/loans edged to 1.15% and NCOs remain low (0.10% annualized) .
  • Deposits grew and borrowings dropped sharply q/q ($78M vs $286M), easing funding risk and supporting earnings .
  • Capital deployment is shareholder‑friendly: special $1.25 dividend and consistent $1.07 quarterly dividend reinforce confidence in earnings power .
  • FIZN transaction expands scale to ~$12.5B pro forma assets and is expected to be ~15% EPS accretive in 2026; a medium‑term re‑rating catalyst post‑close .
  • Fee income mix bears watching after q/q softness; fiduciary and card‑related lines remain a steady base .
  • Near‑term focus: execution on credit remediation (NPLs), preserve margin via deposit mix and securities repositioning, and timely regulatory/closing milestones for FIZN .