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PN

PARK NATIONAL CORP /OH/ (PRK)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered solid results: net income $38.6M (+57.7% YoY) and diluted EPS $2.37 (+57.0% YoY), with sequential stability versus Q3 ($38.2M; $2.35) .
  • Net interest margin expanded to 4.51% (from 4.45% in Q3 and 4.17% in Q4’23), while the efficiency ratio improved to 61.60% (from 70.93% in Q4’23), signaling positive spread dynamics and disciplined costs .
  • Loan growth +4.6% YoY to $7.82B and deposits +1.3% YoY to $8.14B (2.7% including off-balance-sheet), supporting funding and balance-sheet stability; borrowings fell ~46% YoY to $280M .
  • The board raised the quarterly dividend to $1.07 per share (from $1.06 in Q3) and paid a $0.50 one-time special dividend in Q3, highlighting capital return confidence .
  • S&P Global consensus estimates were unavailable due to access constraints; we cannot formally assess beats/misses versus Wall Street consensus (see Estimates Context section).

What Went Well and What Went Wrong

What Went Well

  • Net interest margin strengthened to 4.51% in Q4 (4.45% Q3; 4.17% Q4’23), aided by strong funding base and deposit cost discipline .
  • Non-interest income rose sharply YoY, with fiduciary income and bank-owned life insurance contributions; full-year other income +32.3% to $122.6M, aided by a pension settlement gain and higher equity gains .
  • Management emphasized relationship banking and measured growth: “Our consistent and measured growth stems from our team’s absolute focus on meeting customer needs…” (CEO David Trautman) and focus on stakeholder success (President Matthew Miller) .

What Went Wrong

  • Credit costs normalized higher: annual net loan charge-offs were $10.3M (0.14% of average loans) vs. $4.9M (0.07%) in 2023; two previously specifically reserved relationships drove $4.2M of charge-offs .
  • Nonperforming loans increased YoY to $69.9M (0.89% of loans) from $61.1M (0.82%), though improved vs. Q3; office CRE is monitored closely ($247.2M non-owner-occupied office exposure, mostly accruing) .
  • Investment securities balances declined ~23% YoY, continuing to weigh on investment income (Q4 taxable investment income $8.6M vs. $13.1M in Q4’23) .

Financial Results

Quarterly Income Statement and EPS

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Total Interest Income ($USD Millions)$125.2 $128.9 $133.8 $133.6
Net Interest Income ($USD Millions)$95.1 $97.8 $101.1 $103.4
Provision for Credit Losses ($USD Millions)$1.8 $3.1 $5.3 $3.9
Other Income ($USD Millions)$15.5 $28.8 $36.5 $31.1
Other Expense ($USD Millions)$79.0 $75.2 $85.7 $83.2
Income Before Income Taxes ($USD Millions)$29.7 $48.3 $46.6 $47.3
Net Income ($USD Millions)$24.5 $39.4 $38.2 $38.6
Diluted EPS ($USD)$1.51 $2.42 $2.35 $2.37

Margins and Profitability

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Net Interest Margin (%)4.17% 4.39% 4.45% 4.51%
Efficiency Ratio (%)70.93% 59.09% 61.98% 61.60%
ROAA (%)0.98% 1.61% 1.53% 1.54%
ROAE (%)8.81% 13.52% 12.56% 12.32%

Balance Sheet and Asset Quality

MetricDec 31, 2023Jun 30, 2024Sep 30, 2024Dec 31, 2024
Loans ($USD Millions)$7,476.2 $7,664.4 $7,731.0 $7,817.1
Total Deposits ($USD Millions)$8,042.6 $8,312.5 $8,214.7 $8,143.5
Borrowings ($USD Millions)$517.3 $283.9 $307.0 $280.1
Total Assets ($USD Millions)$9,836.5 $9,919.8 $9,903.0 $9,805.4
Allowance for Credit Losses ($USD Millions)$83.7 $86.6 $87.2 $88.0
Nonperforming Loans ($USD Millions)$61.1 $72.7 $71.5 $69.9
NPL Ratio (% of Loans)0.82% 0.95% 0.93% 0.89%

Loan Mix (Year-end)

Loan TypeDec 31, 2023Dec 31, 2024
Home Equity ($USD Millions)$174.6 $203.9
Installment ($USD Millions)$1,950.3 $1,927.2
Real Estate ($USD Millions)$1,340.2 $1,452.8
Commercial ($USD Millions)$4,007.9 $4,230.4
Other ($USD Millions)$3.2 $2.8
Total Loans ($USD Millions)$7,476.2 $7,817.1

Deposit Mix and Off-Balance Sheet Program

Deposit TypeDec 31, 2023Sep 30, 2024Dec 31, 2024
Non-Interest Bearing ($USD Millions)$2,628.2 $2,516.7 $2,612.7
Transaction Accounts ($USD Millions)$2,064.5 $2,141.2 $1,939.8
Savings ($USD Millions)$2,543.2 $2,743.5 $2,679.3
Certificates of Deposit ($USD Millions)$641.6 $722.2 $735.3
Brokered & Bid CDs ($USD Millions)$165.0 $91.0 $176.5
Total Deposits ($USD Millions)$8,042.6 $8,214.7 $8,143.5
Off-Balance Sheet Deposits ($USD Millions)$1.2 $— $115.2
Total Including Off-B/S ($USD Millions)$8,043.8 $8,214.7 $8,258.7

Credit Cost Metrics (Linked Quarters)

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Net Loan Charge-offs ($USD Thousands)$2,666 $1,622 $4,653 $3,206
Annualized NCOs as % of Avg Loans (%)0.14% 0.09% 0.24% 0.16%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly Cash Dividend per ShareQ3 2024 → Q4 2024$1.06 (Q3 regular dividend) $1.07 (Q4 regular dividend) Raised
Special Dividend per ShareQ3 2024$0.50 (one-time) N/A in Q4One-time (no continuation)

No quantitative guidance was provided for revenue, margins, OpEx, OI&E, or tax rate in Q4 materials .

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was available in our document catalog; themes are derived from the 8-K and press release content.

TopicPrevious Mentions (Q-2: Q2 2024)Previous Mentions (Q-1: Q3 2024)Current Period (Q4 2024)Trend
Net Interest MarginNIM 4.39% on funding discipline NIM 4.45%; continued improvement NIM 4.51% Q4; further expansion Improving
Deposit Strategy (Off-B/S)Off-B/S deposits down as balances normalize Commercial deposits up; brokered/bid CDs down vs YE’23 Off-B/S deposits used tactically; total including off-B/S +2.7% YoY Active balance-sheet management
Credit Costs/ReservesReserves up; NCOs 0.07% annualized Hurricane Helene $1.7M reserve added; NCOs 0.13% annualized YTD Helene reserve $0.76M incremental; NCOs 0.14% annualized for FY Normalizing higher
Office CRE Monitoring$226.4M non-owner-occupied office loans (mostly accruing) $229.4M office exposure (mostly accruing) $247.2M office exposure (mostly accruing) Elevated monitoring
Non-Interest Income DriversFiduciary, equity gains; modest BOLI Pension settlement gain $5.8M; fiduciary rising Full-year other income +32%; pension gain $6.1M Strengthening
Capital ReturnsQuarterly dividend maintained; confidence Regular $1.06 + $0.50 special dividend Regular dividend raised to $1.07 Shareholder-friendly

Management Commentary

  • “Our consistent and measured growth stems from our team’s absolute focus on meeting customer needs to produce meaningful results.” — David L. Trautman, Chairman & CEO .
  • “Our bankers are dedicated to helping all those we serve achieve their financial goals and thrive in 2025.” — Matthew R. Miller, President .
  • Strategy emphasizes relationship banking, diversified revenue, strong funding base, and high-quality capital (99% Tier 1 common equity) per investor presentation context .

Q&A Highlights

No Q4 2024 earnings call transcript was available; no public Q&A themes identified in our document set (8-Ks and press releases only).

Estimates Context

  • S&P Global consensus estimates (EPS, revenue) were unavailable due to access error; we cannot provide a formal comparison to Street estimates or assess beats/misses based on S&P Global data. Values would have been retrieved from S&P Global, but were unavailable at this time.
  • Given this constraint, estimate-related adjustments cannot be assessed versus S&P Global consensus.

Key Takeaways for Investors

  • Spread momentum: NIM rose to 4.51% in Q4 while cost of interest-bearing deposits fell to 1.90% QoQ, supporting net interest income growth .
  • Balance sheet resilience: Loans +4.6% YoY, deposits +2.7% including off-balance sheet; borrowings down ~46% YoY, indicating strengthened core funding .
  • Credit normalization: NCOs increased vs. 2023 and reserves rose; management added targeted reserves (e.g., hurricane impact) while NPLs remain <1% of loans .
  • Non-interest income strength: Fiduciary income and pension-related items lifted other income YoY; watch sustainability of equity gains and BOLI contributions .
  • Capital return: Regular dividend increased to $1.07 in Q4; prior quarter included a $0.50 special dividend—underscoring capital flexibility .
  • Deposit mix dynamics: Growth in CDs/brokered funding and tactical off-balance sheet management; monitor non-interest-bearing deposit share and public fund seasonality .
  • Monitoring office CRE exposure: $247.2M non-owner-occupied office loans, mostly accruing—no current stress indicated, but continued oversight prudent .