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 September 30, 2024, June 30, 2024 and September 30, 2023

	2024			2024			2023			Percent change vs.
(in thousands, except common share and per common share data and ratios)	3rd QTR			2nd QTR			3rd QTR			2Q '24		3Q '23
INCOME STATEMENT:
Net interest income	$	101,114		$	97,837		$	94,269		3.3	%	7.3	%
Provision for (recovery of) credit losses	5,315			3,113			(1,580)			70.7	%	N.M.
Other income	36,530			28,794			27,713			26.9	%	31.8	%
Other expense	85,681			75,189			77,808			14.0	%	10.1	%
Income before income taxes	$	46,648		$	48,329		$	45,754		(3.5)	%	2.0	%
Income taxes	8,431			8,960			8,837			(5.9)	%	(4.6)	%
Net income	$	38,217		$	39,369		$	36,917		(2.9)	%	3.5	%

MARKET DATA:
Earnings per common share - basic (a)	$	2.37		$	2.44		$	2.29		(2.9)	%	3.5	%
Earnings per common share - diluted (a)	2.35			2.42			2.28			(2.9)	%	3.1	%
Quarterly cash dividend declared per common share	1.06			1.06			1.05			—	%	1.0	%
Book value per common share at period end	76.74			73.27			67.41			4.7	%	13.8	%
Market price per common share at period end	167.98			142.34			94.52			18.0	%	77.7	%
Market capitalization at period end	2,713,152			2,298,723			1,522,096			18.0	%	78.3	%

Weighted average common shares - basic (b)	16,151,640			16,149,523			16,133,310			—	%	0.1	%
Weighted average common shares - diluted (b)	16,264,393			16,239,617			16,217,880			0.2	%	0.3	%
Common shares outstanding at period end	16,151,640			16,149,523			16,103,425			—	%	0.3	%

PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b)	1.53		%	1.61		%	1.47		%	(5.0)	%	4.1	%
Return on average shareholders' equity (a)(b)	12.56		%	13.52		%	13.28		%	(7.1)	%	(5.4)	%
Yield on loans	6.24		%	6.13		%	5.65		%	1.8	%	10.4	%
Yield on investment securities	3.74		%	3.83		%	3.73		%	(2.3)	%	0.3	%
Yield on money market instruments	5.38		%	5.33		%	5.34		%	0.9	%	0.7	%
Yield on interest earning assets	5.88		%	5.78		%	5.27		%	1.7	%	11.6	%
Cost of interest bearing deposits	2.06		%	1.99		%	1.63		%	3.5	%	26.4	%
Cost of borrowings	3.97		%	4.08		%	3.92		%	(2.7)	%	1.3	%
Cost of paying interest bearing liabilities	2.15		%	2.10		%	1.76		%	2.4	%	22.2	%
Net interest margin (g)	4.45		%	4.39		%	4.12		%	1.4	%	8.0	%
Efficiency ratio (g)	61.98		%	59.09		%	63.25		%	4.9	%	(2.0)	%

OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:
Tangible book value per common share (d)	$	66.62		$	63.14		$	57.19		5.5	%	16.5	%
Average interest earning assets	9,100,594			9,016,905			9,178,281			0.9	%	(0.8)	%
Pre-tax, pre-provision net income (j)	51,963			51,442			44,174			1.0	%	17.6	%

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 September 30, 2024, June 30, 2024 and September 30, 2023

										Percent change vs.
(in thousands, except ratios)	September 30, 2024			June 30, 2024			September 30, 2023			2Q '24		3Q '23
BALANCE SHEET:
Investment securities	$	1,233,297		$	1,264,858		$	1,708,827		(2.5)	%	(27.8)	%
Loans	7,730,984			7,664,377			7,349,745			0.9	%	5.2	%
Allowance for credit losses	87,237			86,575			84,602			0.8	%	3.1	%
Goodwill and other intangible assets	163,320			163,607			164,581			(0.2)	%	(0.8)	%
Other real estate owned (OREO)	1,119			1,210			1,354			(7.5)	%	(17.4)	%
Total assets	9,903,049			9,919,783			10,000,914			(0.2)	%	(1.0)	%
Total deposits	8,214,671			8,312,505			8,244,724			(1.2)	%	(0.4)	%
Borrowings	306,964			283,874			541,811			8.1	%	(43.3)	%
Total shareholders' equity	1,239,413			1,183,257			1,085,564			4.7	%	14.2	%
Tangible equity (d)	1,076,093			1,019,650			920,983			5.5	%	16.8	%
Total nonperforming loans	71,541			72,745			55,635			(1.7)	%	28.6	%
Total nonperforming assets	72,660			73,955			56,989			(1.8)	%	27.5	%

ASSET QUALITY RATIOS:
Loans as a % of period end total assets	78.07		%	77.26		%	73.49		%	1.0	%	6.2	%
Total nonperforming loans as a % of period end loans	0.93		%	0.95		%	0.76		%	(2.1)	%	22.4	%
Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets	0.94		%	0.96		%	0.78		%	(2.1)	%	20.5	%
Allowance for credit losses as a % of period end loans	1.13		%	1.13		%	1.15		%	—	%	(1.7)	%
Net loan charge-offs	$	4,653		$	1,622		$	1,024		186.9	%	354.4	%
Annualized net loan charge-offs as a % of average loans (b)	0.24		%	0.09		%	0.06		%	166.7	%	300.0	%

CAPITAL & LIQUIDITY:
Total shareholders' equity / Period end total assets	12.52		%	11.93		%	10.85		%	4.9	%	15.4	%
Tangible equity (d) / Tangible assets (f)	11.05		%	10.45		%	9.36		%	5.7	%	18.1	%
Average shareholders' equity / Average assets (b)	12.20		%	11.94		%	11.07		%	2.2	%	10.2	%
Average shareholders' equity / Average loans (b)	15.76		%	15.44		%	15.17		%	2.1	%	3.9	%
Average loans / Average deposits (b)	92.69		%	92.53		%	86.69		%	0.2	%	6.9	%

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
Nine months ended September 30, 2024 and September 30, 2023

	2024			2023
(in thousands, except common share and per common share data and ratios)	Nine months ended September 30			Nine months ended September 30			Percent change vs '23
INCOME STATEMENT:
Net interest income	$	294,574		$	278,039		5.9	%
Provision for credit losses	10,608			1,095			N.M.
Other income	91,524			77,115			18.7	%
Other expense	238,098			230,196			3.4	%
Income before income taxes	$	137,392		$	123,863		10.9	%
Income taxes	24,602			21,629			13.7	%
Net income	$	112,790		$	102,234		10.3	%

MARKET DATA:
Earnings per common share - basic (a)	$	6.99		$	6.32		10.6	%
Earnings per common share - diluted (a)	6.95			6.29			10.5	%
Quarterly cash dividend declared per common share	3.18			3.15			1.0	%

Weighted average common shares - basic (b)	16,139,335			16,180,261			(0.3)	%
Weighted average common shares - diluted (b)	16,231,766			16,261,109			(0.2)	%

PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b)	1.53		%	1.37		%	11.7	%
Return on average shareholders' equity (a)(b)	12.77		%	12.48		%	2.3	%
Yield on loans	6.12		%	5.44		%	12.5	%
Yield on investment securities	3.83		%	3.69		%	3.8	%
Yield on money market instruments	5.41		%	4.94		%	9.5	%
Yield on interest earning assets	5.77		%	5.08		%	13.6	%
Cost of interest bearing deposits	2.00		%	1.42		%	40.8	%
Cost of borrowings	4.11		%	3.56		%	15.4	%
Cost of paying interest bearing liabilities	2.11		%	1.55		%	36.1	%
Net interest margin (g)	4.37		%	4.09		%	6.8	%
Efficiency ratio (g)	61.38		%	64.29		%	(4.5)	%

ASSET QUALITY RATIOS:
Net loan charge-offs	$	7,116		$	2,255		215.6	%
Net loan charge-offs as a % of average loans (b)	0.13		%	0.04		%	225.0	%

CAPITAL & LIQUIDITY
Average shareholders' equity / Average Assets (b)	11.96		%	10.97		%	9.0	%
Average shareholders' equity / Average loans (b)	15.56		%	15.28		%	1.8	%
Average loans / Average deposits (b)	92.11		%	85.37		%	7.9	%

OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:
Average interest earning assets	9,055,400			9,189,014			(1.5)	%
Pre-tax, pre-provision net income (j)	148,000			124,958			18.4	%

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				Nine Month Ended
	September 30				September 30
(in thousands, except share and per share data)	2024		2023		2024		2023

Interest income:
Interest and fees on loans	$	120,203	$	103,258	$	346,732	$	291,300
Interest on debt securities:
Taxable	10,228		13,321		33,077		39,731
Tax-exempt	1,381		2,900		4,173		8,718
Other interest income	1,996		1,410		5,370		6,715
Total interest income	133,808		120,889		389,352		346,464

Interest expense:
Interest on deposits:
Demand and savings deposits	22,762		20,029		62,987		52,309
Time deposits	7,073		3,097		21,936		6,410
Interest on borrowings	2,859		3,494		9,855		9,706
Total interest expense	32,694		26,620		94,778		68,425

Net interest income	101,114		94,269		294,574		278,039

Provision for (recovery of) credit losses	5,315		(1,580)		10,608		1,095

Net interest income after provision for (recovery of) credit losses	95,799		95,849		283,966		276,944

Other income	36,530		27,713		91,524		77,115

Other expense	85,681		77,808		238,098		230,196

Income before income taxes	46,648		45,754		137,392		123,863

Income taxes	8,431		8,837		24,602		21,629

Net income	$	38,217	$	36,917	$	112,790	$	102,234

Per common share:
Net income - basic	$	2.37	$	2.29	$	6.99	$	6.32
Net income - diluted	$	2.35	$	2.28	$	6.95	$	6.29

Weighted average common shares - basic	16,151,640		16,133,310		16,139,335		16,180,261
Weighted average common shares - diluted	16,264,393		16,217,880		16,231,766		16,261,109

Cash dividends declared:
Quarterly dividend	$	1.06	$	1.05	$	3.18	$	3.15



PARK NATIONAL CORPORATION
Consolidated Balance Sheets

(in thousands, except share data)	September 30, 2024		December 31, 2023

Assets

Cash and due from banks	$	147,338	$	160,477
Money market instruments	54,345		57,791
Investment securities	1,233,297		1,429,144
Loans	7,730,984		7,476,221
Allowance for credit losses	(87,237)		(83,745)
Loans, net	7,643,747		7,392,476
Bank premises and equipment, net	70,939		74,211
Goodwill and other intangible assets	163,320		164,247
Other real estate owned	1,119		983
Other assets	588,944		557,124
Total assets	$	9,903,049	$	9,836,453

Liabilities and Shareholders' Equity

Deposits:
Noninterest bearing	$	2,516,722	$	2,628,234
Interest bearing	5,697,949		5,414,332
Total deposits	8,214,671		8,042,566
Borrowings	306,964		517,329
Other liabilities	142,001		131,265
Total liabilities	$	8,663,636	$	8,691,160


Shareholders' Equity:
Preferred shares (200,000 shares authorized; no shares outstanding at September 30, 2024 and December 31, 2023)	$	—	$	—
Common shares (No par value; 20,000,000 shares authorized; 17,623,104 shares issued at September 30, 2024 and December 31, 2023)	462,129		463,280
Accumulated other comprehensive loss, net of taxes	(34,684)		(66,191)
Retained earnings	964,008		903,877
Treasury shares (1,471,464 shares at September 30, 2024 and 1,506,625 shares at December 31, 2023)	(152,040)		(155,673)
Total shareholders' equity	$	1,239,413	$	1,145,293
Total liabilities and shareholders' equity	$	9,903,049	$	9,836,453



PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2024		2023		2024		2023

Assets

Cash and due from banks	$	124,825	$	146,162	$	131,125	$	151,735
Money market instruments	147,708		104,754		132,681		181,793
Investment securities	1,242,969		1,737,292		1,298,657		1,773,695
Loans	7,680,657		7,267,476		7,583,833		7,166,863
Allowance for credit losses	(86,623)		(88,522)		(85,367)		(87,511)
Loans, net	7,594,034		7,178,954		7,498,466		7,079,352
Bank premises and equipment, net	71,913		78,483		73,386		80,361
Goodwill and other intangible assets	163,509		164,801		163,820		165,127
Other real estate owned	1,214		1,870		1,230		1,759
Other assets	574,461		552,798		565,950		546,434
Total assets	$	9,920,633	$	9,965,114	$	9,865,315	$	9,980,256


Liabilities and Shareholders' Equity

Deposits:
Noninterest bearing	$	2,521,083	$	2,748,259	$	2,554,232	$	2,854,736
Interest bearing	5,765,082		5,634,621		5,678,898		5,540,680
Total deposits	8,286,165		8,382,880		8,233,130		8,395,416
Borrowings	286,763		353,203		320,353		364,384
Other liabilities	137,140		126,354		131,689		125,532
Total liabilities	$	8,710,068	$	8,862,437	$	8,685,172	$	8,885,332

Shareholders' Equity:
Preferred shares	$	—	$	—	$	—	$	—
Common shares	460,524		460,592		461,193		460,672
Accumulated other comprehensive loss, net of taxes	(60,415)		(97,029)		(67,130)		(94,762)
Retained earnings	962,496		893,124		939,387		877,506
Treasury shares	(152,040)		(154,010)		(153,307)		(148,492)
Total shareholders' equity	$	1,210,565	$	1,102,677	$	1,180,143	$	1,094,924
Total liabilities and shareholders' equity	$	9,920,633	$	9,965,114	$	9,865,315	$	9,980,256



PARK NATIONAL CORPORATION
Consolidated Statements of Income - Linked Quarters

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

Interest income:
Interest and fees on loans	$	120,203	$	115,318	$	111,211	$	108,495	$	103,258
Interest on debt securities:
Taxable	10,228		10,950		11,899		13,055		13,321
Tax-exempt	1,381		1,382		1,410		2,248		2,900
Other interest income	1,996		1,254		2,120		1,408		1,410
Total interest income	133,808		128,904		126,640		125,206		120,889

Interest expense:
Interest on deposits:
Demand and savings deposits	22,762		20,370		19,855		19,467		20,029
Time deposits	7,073		7,525		7,338		6,267		3,097
Interest on borrowings	2,859		3,172		3,824		4,398		3,494
Total interest expense	32,694		31,067		31,017		30,132		26,620

Net interest income	101,114		97,837		95,623		95,074		94,269

Provision for (recovery of) credit losses	5,315		3,113		2,180		1,809		(1,580)

Net interest income after provision for (recovery of ) credit losses	95,799		94,724		93,443		93,265		95,849

Other income	36,530		28,794		26,200		15,519		27,713

Other expense	85,681		75,189		77,228		79,043		77,808

Income before income taxes	46,648		48,329		42,415		29,741		45,754

Income taxes	8,431		8,960		7,211		5,241		8,837

Net income	$	38,217	$	39,369	$	35,204	$	24,500	$	36,917

Per common share:
Net income - basic	$	2.37	$	2.44	$	2.18	$	1.52	$	2.29
Net income - diluted	$	2.35	$	2.42	$	2.17	$	1.51	$	2.28



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

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

Other income:
Income from fiduciary activities	$	10,615	$	10,728	$	10,024	$	8,943	$	9,100
Service charges on deposit accounts	2,362		2,214		2,106		2,054		2,109
Other service income	3,036		2,906		2,524		2,349		2,615
Debit card fee income	6,539		6,580		6,243		6,583		6,652
Bank owned life insurance income	2,057		1,565		2,629		1,373		1,448
ATM fees	471		458		496		517		575
Pension settlement gain	5,783		—		—		—		—
Loss on sale of debt securities, net	—		—		(398)		(7,875)		—
Gain (loss) on equity securities, net	1,557		358		(687)		353		998
Other components of net periodic benefit income	2,204		2,204		2,204		1,893		1,893
Miscellaneous	1,906		1,781		1,059		(671)		2,323
Total other income	$	36,530	$	28,794	$	26,200	$	15,519	$	27,713

Other expense:
Salaries	$	38,370	$	35,954	$	35,733	$	36,192	$	34,525
Employee benefits	10,162		9,873		11,560		10,088		10,822
Occupancy expense	3,731		2,975		3,181		3,344		3,203
Furniture and equipment expense	2,571		2,454		2,583		2,824		3,060
Data processing fees	11,764		9,542		8,808		9,605		9,700
Professional fees and services	7,842		6,022		6,817		7,015		7,572
Marketing	1,464		1,164		1,741		1,716		1,197
Insurance	1,640		1,777		1,718		1,708		2,158
Communication	955		1,002		1,036		993		1,135
State tax expense	1,116		1,129		1,110		1,158		1,125
Amortization of intangible assets	287		320		320		334		334
Foundation contributions	2,000		—		—		1,000		—
Miscellaneous	3,779		2,977		2,621		3,066		2,977
Total other expense	$	85,681	$	75,189	$	77,228	$	79,043	$	77,808


PARK NATIONAL CORPORATION
Asset Quality Information

										Year ended December 31,
(in thousands, except ratios)	September 30, 2024			June 30, 2024			March 31, 2024			2023			2022			2021			2020			2019

Allowance for credit losses:
Allowance for credit losses, beginning of period	$	86,575		$	85,084		$	83,745		$	85,379		$	83,197		$	85,675		$	56,679		$	51,512
Cumulative change in accounting principle; adoption of ASU 2022-02 in 2023 and ASU 2016-13 in 2021	—			—			—			383			—			6,090			—			—
Charge-offs	6,554			3,097			3,240			10,863			9,133			5,093			10,304			11,177
Recoveries	1,901			1,475			2,399			5,942			6,758			8,441			27,246			10,173
Net charge-offs (recoveries)	4,653			1,622			841			4,921			2,375			(3,348)			(16,942)			1,004
Provision for (recovery of) credit losses	5,315			3,113			2,180			2,904			4,557			(11,916)			12,054			6,171
Allowance for credit losses, end of period	$	87,237		$	86,575		$	85,084		$	83,745		$	85,379		$	83,197		$	85,675		$	56,679

General reserve trends:
Allowance for credit losses, end of period	$	87,237		$	86,575		$	85,084		$	83,745		$	85,379		$	83,197		$	85,675		$	56,679
Allowance on accruing purchased credit deteriorated ("PCD") loans (purchased credit impaired ("PCI") loans for years 2020 and prior)	—			—			—			—			—			—			167			268
Allowance on purchased loans excluded from collectively evaluated loans (for years 2020 and prior)	N.A.			N.A.			N.A.			N.A.			N.A.			N.A.			678			—
Specific reserves on individually evaluated loans	2,489			5,311			5,032			4,983			3,566			1,616			5,434			5,230
General reserves on collectively evaluated loans	$	84,748		$	81,264		$	80,052		$	78,762		$	81,813		$	81,581		$	79,396		$	51,181

Total loans	$	7,730,984		$	7,664,377		$	7,525,005		$	7,476,221		$	7,141,891		$	6,871,122		$	7,177,785		$	6,501,404
Accruing PCD loans (PCI loans for years 2020 and prior)	2,191			2,420			2,454			2,835			4,653			7,149			11,153			14,331
Purchased loans excluded from collectively evaluated loans (for years 2020 and prior)	N.A.			N.A.			N.A.			N.A.			N.A.			N.A.			360,056			548,436
Individually evaluated loans (k)	53,573			54,993			54,742			45,215			78,341			74,502			108,407			77,459
Collectively evaluated loans	$	7,675,220		$	7,606,964		$	7,467,809		$	7,428,171		$	7,058,897		$	6,789,471		$	6,698,169		$	5,861,178

Asset Quality Ratios:
Net charge-offs (recoveries) as a % of average loans	0.24		%	0.09		%	0.05		%	0.07		%	0.03		%	(0.05)		%	(0.24)		%	0.02		%
Allowance for credit losses as a % of period end loans	1.13		%	1.13		%	1.13		%	1.12		%	1.20		%	1.21		%	1.19		%	0.87		%
General reserve as a % of collectively evaluated loans	1.10		%	1.07		%	1.07		%	1.06		%	1.16		%	1.20		%	1.19		%	0.87		%

Nonperforming assets:
Nonaccrual loans	$	67,991		$	71,368		$	70,189		$	60,259		$	79,696		$	72,722		$	117,368		$	90,080
Accruing troubled debt restructurings (for years 2022 and prior) (k)	N.A.			N.A.			N.A.			N.A.			20,134			28,323			20,788			21,215
Loans past due 90 days or more	3,550			1,377			1,570			859			1,281			1,607			1,458			2,658
Total nonperforming loans	$	71,541		$	72,745		$	71,759		$	61,118		$	101,111		$	102,652		$	139,614		$	113,953
Other real estate owned	1,119			1,210			1,674			983			1,354			775			1,431			4,029
Other nonperforming assets	—			—			—			—			—			2,750			3,164			3,599
Total nonperforming assets	$	72,660		$	73,955		$	73,433		$	62,101		$	102,465		$	106,177		$	144,209		$	121,581
Percentage of nonaccrual loans to period end loans	0.88		%	0.93		%	0.93		%	0.81		%	1.12		%	1.06		%	1.64		%	1.39		%
Percentage of nonperforming loans to period end loans	0.93		%	0.95		%	0.95		%	0.82		%	1.42		%	1.49		%	1.95		%	1.75		%
Percentage of nonperforming assets to period end loans	0.94		%	0.96		%	0.98		%	0.83		%	1.43		%	1.55		%	2.01		%	1.87		%
Percentage of nonperforming assets to period end total assets	0.73		%	0.75		%	0.74		%	0.63		%	1.04		%	1.11		%	1.55		%	1.42		%

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)	September 30, 2024		June 30, 2024		March 31, 2024		2023		2022		2021		2020		2019

New nonaccrual loan information:
Nonaccrual loans, beginning of period	$	71,368	$	70,189	$	60,259	$	79,696	$	72,722	$	117,368	$	90,080	$	67,954
New nonaccrual loans	14,171		13,180		19,012		48,280		64,918		38,478		103,386		81,009
Resolved nonaccrual loans	17,548		12,001		9,082		67,717		57,944		83,124		76,098		58,883
Nonaccrual loans, end of period	$	67,991	$	71,368	$	70,189	$	60,259	$	79,696	$	72,722	$	117,368	$	90,080

Individually evaluated commercial loan portfolio information (period end): (k)
Unpaid principal balance	$	58,643	$	57,184	$	57,053	$	47,564	$	80,116	$	75,126	$	109,062	$	78,178
Prior charge-offs	5,070		2,191		2,311		2,349		1,775		624		655		719
Remaining principal balance	53,573		54,993		54,742		45,215		78,341		74,502		108,407		77,459
Specific reserves	2,489		5,311		5,032		4,983		3,566		1,616		5,434		5,230
Book value, after specific reserves	$	51,084	$	49,682	$	49,710	$	40,232	$	74,775	$	72,886	$	102,973	$	72,229

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									NINE MONTHS ENDED
(in thousands, except share and per share data)	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Net interest income	$	101,114		$	97,837		$	94,269		$	294,574		$	278,039
less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions	281			271			145			904			509
less interest income on former Vision Bank relationships	9			5			9			16			596
Net interest income - adjusted	$	100,824		$	97,561		$	94,115		$	293,654		$	276,934

Provision for (recovery of) credit losses	$	5,315		$	3,113		$	(1,580)		$	10,608		$	1,095
less recoveries on former Vision Bank relationships	(234)			(117)			(40)			(1,304)			(788)
Provision for (recovery of) credit losses - adjusted	$	5,549		$	3,230		$	(1,540)		$	11,912		$	1,883

Other income	$	36,530		$	28,794		$	27,713		$	91,524		$	77,115
less loss on sale of debt securities, net	—			—			—			(398)			—
less pension settlement gain	5,783			—			—			5,783			—
less impact of strategic initiatives	—			813			—			658			—
less Vision related gain on the sale of OREO, net	1			(7)			—			115			—
less other service income related to former Vision Bank relationships	—			6			—			13			135
Other income - adjusted	$	30,746		$	27,982		$	27,713		$	85,353		$	76,980

Other expense	$	85,681		$	75,189		$	77,808		$	238,098		$	230,196
less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions	287			320			334			927			989
less Foundation contribution	2,000			—			—			2,000			—
less one-time incentive	1,700			—			—			1,700			—
less building demolition costs	349			—			—			414			—
less direct expenses related to collection of payments on former Vision Bank loan relationships	—			—			—			—			100
Other expense - adjusted	$	81,345		$	74,869		$	77,474		$	233,057		$	229,107

Tax effect of adjustments to net income identified above (i)	$	(414)		$	(186)		$	29		$	(704)		$	(197)

Net income - reported	$	38,217		$	39,369		$	36,917		$	112,790		$	102,234
Net income - adjusted (h)	$	36,659		$	38,670		$	37,028		$	110,140		$	101,492

Diluted earnings per common share	$	2.35		$	2.42		$	2.28		$	6.95		$	6.29
Diluted earnings per common share, adjusted (h)	$	2.25		$	2.38		$	2.28		$	6.79		$	6.24

Annualized return on average assets (a)(b)	1.53		%	1.61		%	1.47		%	1.53		%	1.37		%
Annualized return on average assets, adjusted (a)(b)(h)	1.47		%	1.59		%	1.47		%	1.49		%	1.36		%

Annualized return on average tangible assets (a)(b)(e)	1.56		%	1.64		%	1.49		%	1.55		%	1.39		%
Annualized return on average tangible assets, adjusted (a)(b)(e)(h)	1.49		%	1.61		%	1.50		%	1.52		%	1.38		%

Annualized return on average shareholders' equity (a)(b)	12.56		%	13.52		%	13.28		%	12.77		%	12.48		%
Annualized return on average shareholders' equity, adjusted (a)(b)(h)	12.05		%	13.28		%	13.32		%	12.47		%	12.39		%

Annualized return on average tangible equity (a)(b)(c)	14.52		%	15.72		%	15.62		%	14.82		%	14.70		%
Annualized return on average tangible equity, adjusted (a)(b)(c)(h)	13.93		%	15.44		%	15.66		%	14.48		%	14.59		%

Efficiency ratio (g)	61.98		%	59.09		%	63.25		%	61.38		%	64.29		%
Efficiency ratio, adjusted (g)(h)	61.55		%	59.35		%	63.05		%	61.20		%	64.21		%

Annualized net interest margin (g)	4.45		%	4.39		%	4.12		%	4.37		%	4.09		%
Annualized net interest margin, adjusted (g)(h)	4.43		%	4.38		%	4.11		%	4.36		%	4.07		%
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 September 30, 2024, June 30, 2024, and September 30, 2023 and the nine months ended September 30, 2024 and September 30, 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						NINE MONTHS ENDED
	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
AVERAGE SHAREHOLDERS' EQUITY	$	1,210,565	$	1,171,347	$	1,102,677	$	1,180,143	$	1,094,924
Less: Average goodwill and other intangible assets	163,509		163,816		164,801		163,820		165,127
AVERAGE TANGIBLE EQUITY	$	1,047,056	$	1,007,531	$	937,876	$	1,016,323	$	929,797

(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:
	September 30, 2024		June 30, 2024		September 30, 2023
TOTAL SHAREHOLDERS' EQUITY	$	1,239,413	$	1,183,257	$	1,085,564
Less: Goodwill and other intangible assets	163,320		163,607		164,581
TANGIBLE EQUITY	$	1,076,093	$	1,019,650	$	920,983

(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						NINE MONTHS ENDED
	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
AVERAGE ASSETS	$	9,920,633	$	9,811,326	$	9,965,114	$	9,865,315	$	9,980,256
Less: Average goodwill and other intangible assets	163,509		163,816		164,801		163,820		165,127
AVERAGE TANGIBLE ASSETS	$	9,757,124	$	9,647,510	$	9,800,313	$	9,701,495	$	9,815,129

(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:
	September 30, 2024		June 30, 2024		September 30, 2023
TOTAL ASSETS	$	9,903,049	$	9,919,783	$	10,000,914
Less: Goodwill and other intangible assets	163,320		163,607		164,581
TANGIBLE ASSETS	$	9,739,729	$	9,756,176	$	9,836,333


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						NINE MONTHS ENDED
	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Interest income	$	133,808	$	128,904	$	120,889	$	389,352	$	346,464
Fully taxable equivalent adjustment	594		605		1,042		1,815		2,888
Fully taxable equivalent interest income	$	134,402	$	129,509	$	121,931	$	391,167	$	349,352
Interest expense	32,694		31,067		26,620		94,778		68,425
Fully taxable equivalent net interest income	$	101,708	$	98,442	$	95,311	$	296,389	$	280,927

(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						NINE MONTHS ENDED
	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Net income	$	38,217	$	39,369	$	36,917	$	112,790	$	102,234
Plus: Income taxes	8,431		8,960		8,837		24,602		21,629
Plus: Provision for (recovery of) credit losses	5,315		3,113		(1,580)		10,608		1,095
Pre-tax, pre-provision net income	$	51,963	$	51,442	$	44,174	$	148,000	$	124,958

(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.