Park National Corp.
Annual Report 2021

Plain-text annual report

2021 Annual Report Where you mean more. Park National Bank is a family of successful community banking teams that take a hands-on, personalized approach to service and strong local leadership. For more than 100 years, we have been invested in the success of our customers and communities. Seeing you as the unique person or business you are, our goal is to deliver more than you expect from a bank. Our size and strength allow us to deliver flexible, secure banking options and convenience with extensive branch and ATM coverage. At the same time, we retain the local leadership, decision- making, and face-to-face relationships we were built upon. Each banking division is led by local professionals committed to providing extraordinary service, community support and excellent financial performance. Fellow Shareholders: One thing we’ve learned during the pandemic is that in uncertain times, people value predictability. To that end, we start our annual letter to you as we typically do, with our FAV O R I T E N U M B E R S: 2021 2020 2019 Return on Average Equity 14.45% 12.68% 11.14% Return on Average Assets 1.56% 1.38% 1.21% Net Interest Margin 3.69% 3.93% 3.89% Earnings Per Share - Diluted $9.37 $7.80 $6.29 Efficiency Ratio 61.27% 62.83% 66.35% Readers will recall we like the first four numbers to increase and the last one to decrease. We were four for five last year, or in baseball parlance, we batted .800. If we were baseball players, this would guarantee us Mariano Rivera status: a unanimous, first-ballot hall-of-fame vote (the only one so far). In banking, hitting four of our five FAV O R I T E N U M B E R S guarantees that we want to continue our good work with the four and do better on the fifth. It seems every year we must explain “what really happened” behind our financial results. The “what really happened” stuff typically consists of unusual items, unexpected events, et cetera. We will resist turning this entire report into an apologia, but our sense is we may not be alone in feeling the urge to unpack our performance in the face of another strange year. Kelly Herreman (Chief Accounting Officer) and Brady Burt (Chief Financial Officer) have prepared a succinct 2020-2021 comparison, clearly identifying unusual items so the reader may better understand our core performance year over year. You will find it in Table 27 — Items impacting comparability in our Form 10-K. In late 2019 and throughout 2020, we announced as part of our brand unification that we would coalesce around the idea of S E R V I N G M O R E. It was a way to capture and articulate what has always been in our DNA. We live and love to serve, and serving more is a natural answer to the question, “How do we help everyone with whom we come in contact flourish on their journey?” In light of our desire to serve more, we offer the following: • What we expected to happen in 2021 • What we didn’t see coming • • What went well What we can improve upon 1 Background Writer and editor Clifton Fadiman, once observed, “When you reread a classic you do not see more in the book than you did before; you see more in you (our emphasis) than there was before.” We would not get any votes for calling the COVID-19 pandemic a “classic”; there is simply too much pain and division for that. But, having read the COVID-19 book in 2020, we were different people when rereading it in 2021. Park Bankers saw more in themselves. Pivots became sidesteps, strategic shifts became course corrections and setbacks became stepping stones for more personal and professional growth. Simply put, things that rocked us in 2020 did not rock us as much in 2021. The description above suggests that 2021 was a cakewalk. Far from it. Absent our colleagues’ innate desire to serve more — animated by their imagination, energy and brilliance, 2021 could have been a debacle. But it wasn’t. Here’s what it was. What we expected to happen in 2021 Our C O M M U N I T Y S U P P O R T did not waver. We supported 1,431 organizations, making contributions totaling $4.5 million. We also supplied countless volunteer hours to our community friends when and how we could. It was a breathtaking example of serving more. In 2020, we introduced our PA R K D I R E C T A P P. It proved a valuable connection point for customers and their Park Bankers when in-person possibilities were severely restricted in COVID’s early days. We expected it to grow in popularity in 2021 and it did. It has become a portal through which people obtain loans, open accounts, renew CDs and share important life milestones (one of our Park Bankers, Barb Schopp Miller, helped two customers to such a degree that she was invited to their wedding!). Talk about a full-service banker and bank... We expected to start seeing some R E T U R N S O N O U R T E C H N O LO G Y I N V E S T M E N T S. These typically come in the form of efficiency gains, a better customer/user experience or some combination of the two. We have spent a lot of money in the past two years on technology; here are some specific wins: ATMs We replaced 103 of our 116 ATMs. This required a great deal of planning across multiple functions. The new machines are much more intuitive and include large color touch-screens. Users can set-up their preferences so any ATM they use in 2 $4.5 million C O M M U N I T Y D O N AT I O N S the Park family will recognize how they wish to be served (language, specific amount of money, and more). Mortgage Software We partnered with Blend to improve our mortgage application and approval process. Here’s what Chris Hiner, Director of Home Lending, reports: “Implementing the Blend software has been transformative in many ways. It has improved the customer experience by automating the retrieval of information required for the loan process such as income, asset and insurance documentation. It allows lenders to focus more time on relationship development and finding solutions for our borrowers and prospects.” In addition, Blend has helped shave 25% off the time between application and closing. Anyone who bought gasoline, milk, hamburger, 2x4s, steel, diapers, etc. throughout It was clear Kyle cared about me as a new customer. I loved that.” J E S S I C A , F I R S T-T I M E H O M E B U Y E R 3 Blend© shaved 25% off the time between application and closing. the Park family will recognize how they wish to be served (language, specific amount of money, and more). Mortgage software We partnered with Blend© to improve our mortgage application and approval process. Here’s what Chris Hiner, Director of Home Lending, reports: “Implementing the Blend© software has been transformative in many ways. It has improved the customer experience by automating the retrieval of information required for the loan process such as income, asset and insurance documentation. It allows lenders to focus more time on relationship development and finding solutions for our borrowers and prospects.” In addition, Blend© has helped shave 25% off the time between application and closing. Electronic document signatures We began using electronic methods to execute documents in 2020 with the Paycheck Protection Program (PPP). We expanded this capability in 2021, and are looking for more ways to simplify loan closings, deposit account openings, and trust document execution in 2022. It is more convenient for customers and saves steps for all involved. Electronic contracts Our indirect loan colleagues work with over 500 automobile, boat and RV dealers. We began introducing electronic contracts, which will greatly improve the speed and accuracy of making and administering indirect loans. Anyone who bought gasoline, milk, hamburger, 2x4s, steel, diapers, etc. throughout 2021 knew prices were going up. Thus, we expected I N F L AT I O N to show up at some point; we did not expect it to show up as late as it did. Anyone who has taken an intro economics course remembers that over time, the law of supply and demand is undefeated. Short supplies, coupled with similar or increasing demand = higher prices. Add to this the unprecedented tsunami of liquidity flooding individuals, businesses and municipalities…well, inflation would show up at some point. Normally when inflation arrives, it brings with it higher interest rates and a steeper yield curve. This also comes from intro economics. However, most intro economics courses with which we are familiar do not contemplate extraordinary pandemic- inflamed liquidity measures and/or a federal deficit that is roughly the size of a small moon. It is anyone’s guess as to when rates will move, by how much and in what 4 Be assured we are positioned to deal with whatever happens to rates and when. manner (i.e., a parallel yield curve shift or a steepening). So we won’t try; but be assured your bank is positioned to deal with whatever happens to rates and when. Park Bankers — again — S H O W E D E Q U A N I M I T Y in the face of distractions, fears and loss. Park National Bank has been around for more than 100 years (some of us nearly half of that). We have seen a lot, and our colleagues have seen much as well. This cumulative life experience, coupled with our unifying desire to serve more, builds a strong foundation of perspective, perseverance and patience. These qualities augmented our colleagues’ innate courage and resilience. We know people are stressed; we are too. But the Park family said in one voice, “Come in from the dark and rain. Sit by the fire. Let us serve you. We will get through this together.” We comforted people who were looking for a glimpse of humanity and empathy in an increasingly discordant world. We opened accounts, we originated loans, we untangled financial hairballs…sometimes in person, more often through some form of digital connection ennobled by a Park Banker. We are humbled and honored to work with our Park colleagues — they combine technical skill with human compassion to great effect for those we serve. What we didn’t see coming We thought we would suffer some C R E D I T LO S S E S in 2021. We were not alone; nearly the entire industry was expecting the same. Turns out, we had net loan R E C O V E R I E S. We did not expect D E P O S I T S T O C O N T I N U E I N C R E A S I N G. We thought they would decline as consumers and businesses spent what they’d saved during the lockdowns. Yet deposits kept flowing in (and we’re not complaining). We did not see E X T E N D E D S U P P LY- C H A I N I N T E R R U P T I O N S. Early on, experts dismissed these as short-term anomalies. Plenty of our business customers told us otherwise, as their order lead times kept extending through the year. We won’t opine as to who or what is to blame; the world has enough finger-pointers. We believe manufacturers, distributors, retailers and individuals will respond to interruptions and our economy will find a new sense of balance…but it may take a while. We expected most of our Park family colleagues who were able to work remotely beginning in March 2020 to be B AC K I N O U R O F F I C E S. This has not happened yet. It is a bit strange to witness and/or attend sporting and community events that host hundreds or thousands of people, yet folks still find themselves working remotely. Fortunately, our colleagues are focused on serving each other and our 5 44Scope has over I feel like Park came to my rescue because I had gotten to a point where I thought, ‘No one gets it.’” $300 million in aircraft loans to customers in T A R A , N E W A L B A N Y B A L L E T C O M PA N Y 44 of the 50 states. 6 Average monthly delinquency rate on mortgages dropped from 1.35% to 0.73%. customers; their location (in office or remotely) does not hold them back. What went well Indirect loans We have told you before that we have a talented indirect lending team. They turned in another excellent year, originating 30,655 indirect loans for $685 million. We now have over 100,000 indirect loans on our books. Collection efforts If one begins with the premise that a borrower wants to make his/her payment, but can’t, it changes the entire conversation. No longer is one a “delinquent.” Each person has a story unique to him/her. Our specialists view each person who hasn’t paid by the due date as just that…someone who has not made a payment by the agreed upon due date. The great majority of folks want to pay on time and we work with them to reestablish a reasonable way for them to get back to doing just that. Last year’s results reflect our collection team’s success. Throughout the year, the average monthly delinquency rate dropped from 1.35% to 0.73% on mortgages and from 0.24% to 0.18% for installment loans in 2021 compared to 2020. Retail flexibility We have followed the CDC protocols throughout the pandemic. Consequently, when some of our branch colleagues fell ill, or were in contact with someone who was, they had to quarantine. Sometimes this left some branches thinly staffed. Our retail colleagues were relentless about keeping offices open, recalibrating branch teams around quarantines and illness. The great majority of the time, they succeeded. But customers and other guests to those offices may have seen new faces and wondered what was going on. Associate survey The Park family is a wonderful collection of unique people, doing their best to serve more. We are a better organization when we get everyone’s ideas on how to improve everything we do. Thus, we have regularly surveyed our colleagues to find out what they’re thinking. Here are some facts about our most recent survey: • 85% participation • Over 3,000 comments • People care enough to tell us the truth about what’s working and what’s not. Here is a partial list of what we changed as a result of what we learned: ─ We raised our minimum wage. 7 Since 2006, Park has matched $5.1 million in the DCAP and $31.9 million in the ESOP. ─ We paid bonuses to all associates. ─ We implemented flexible work arrangements. ─ We conducted an additional survey, specifically on benefits. ─ We opened new lines of communication through “open office” hours during which any associate could hear various leaders discuss a wide range of topics. ─ We created and have sustained a diversity, equity and inclusion task force. • We asked because we want to know how our colleagues perceive their role(s) in the Park family. Two primary components of operating with an outward mindset are A) question your own virtue (i.e., I’m not right all the time), and B) I have blind spots that others can illuminate…if I would only ask. And we asked… PPP loan forgiveness process • • Submitted 6,854 repayment requests to the SBA or 89% of the 7,701 total PPP loans originated. Repayments totaled $693.1 million or 91% of the $764.7 million PPP loans funded under the SBA program. Associate care We continued to help colleagues with WHOL E LIF E IS SUES. For a number of years, Park has matched our colleagues’ contributions to our Dependent Care Assistance Program (DCAP) and our Employees Stock Ownership Program (ESOP). Since 2006, Park has matched $5.1 million in the DCAP and $31.9 million in the ESOP. Also since 2006, dividends on PRK common shares owned by Park colleagues in the ESOP have totaled $52 million. What we can improve upon We have written and spoken a lot about how we try to operate with an outward mindset — to see others as people rather than as objects. Individually and collectively, Park Bankers have made great progress towards operating with an outward mindset. Our work will continue, as maximizing the time we operate with an outward mindset will reduce self-deception and blind spots to serving colleagues and customers more. Tools for our customers We have solid tools for our customers, including our website, online and mobile 8 Since 2002, Park has matched $5.2 million in the DCAP and $31.8 million in the ESOP. You just need one person who believes in you and Chris has been that guy for me... I know I’m not Park’s biggest customer, but I’m treated like I’m Park’s biggest customer.” D A R R E L L , A L L S E A S O N S L AW N C A R E 9 M O B I L E B A N K I N G A P P PA R K D I R E C T P E R S O N A L B A N K I N G A P P B U S I N E S S M O B I L E B A N K I N G A P P R E T I R E M E N T P L A N A P P banking, ParkDirect and Customer Care Center. We know we can improve our tools and/or introduce new ones to improve each customer’s experience. Here is a partial list of what are we working on in 2022: • • • • Customer appointment scheduling software (allowing customers to choose when, where and with whom they meet) New commercial online banking software (improved treasury management for businesses; more functionality in the hands of the user) Digital banking enhancements (online and mobile) Deposit account opening (simplify and make it more intuitive) Tools for our colleagues Readers know how much we value our colleagues. Great colleagues deserve the best tools. Here’s a partial list of what we’re working on to better equip our colleagues in 2022: • Consumer and commercial loan origination systems (improve process for gathering required information to originate and administer consumer and commercial loans.) Bank Secrecy Act verification, analytics, and reporting (more sophisticated analytical tools to spot fraud, money laundering, elder financial abuse, etc.) Enterprise data warehouse (capture data from many sources into one place, saving untold steps, emails, calls and special reports.) Business intelligence/data science (help us spot trends and themes in our data.) • • • Environmental, Social and Governance (ESG) “Seeing an equal person as an inferior object is an act of violence.” — The Anatomy of Peace, The Arbinger Institute Various investors and regulators have sharpened their focus on ESG matters recently and we think this is good. Years ago, Park’s leaders identified a number of O N L I N E B A N K I N G stakeholders we serve: customers, colleagues, communities, partners, shareholders, boards and regulators. Serve one to the exclusion of the others and the result will be an unsustainable imbalance. We think of all our stakeholders as part of the Park family. We are all part of a web of connectivity, like a spider’s web. If you touch one part of the web, the impact of that touch ripples through the entire web. So it is with Park family members. We are C U S T O M E R C A R E inescapably and wonderfully intertwined. We must balance our service to all family 10 members to prolong our existence so we may continue to serve more. How do we do this? We attempt to operate — individually and collectively — with an outward mindset as much as possible. Quoting from prior letters: “…people should see others as people — each with hopes, dreams and challenges — not as objects (stepping stones, obstacles or irrelevancies). When we see each other as people (an “outward” mindset), we do things for them. When we see others as objects (an “inward” mindset), we do things to them.” We exist to help (our) stakeholders thrive. This is our “Why we do what we do.” We believe if we help these groups achieve their goals, we will maximize our potential for service to all. ©The Outward Mindset by The Arbinger Institute Our mindset informs which behaviors we choose and the effectiveness of those behaviors. Behaviors drive results. Taking care of the environment, honoring social issues and practicing good governance are all behaviors. We have done these things for years, because our mindset begins with seeing others as people, not as objects. Does this mean we can’t improve? Of course not. One of the benefits of operating with an outward mindset is that it strips away layers of prejudice, justification and rationalization so issues and situations can be seen more clearly. We examine our world, the impact of our mindset and behaviors on our stakeholders and when we see areas where we can improve, we act. This is an ongoing process of action ▶ result ▶ reflection ▶ recalibration ▶ repeat. Our goal is to help everyone with whom we come in contact flourish to the extent their talent, energy and ambition permit. Welcome to new neighbors On January 21, 2022, Intel announced it was going to build a new chip manufacturing facility in western Licking County, Ohio. The press release stated that Intel anticipates spending $20 billion and the plant will employ 3,000. It goes on to say a facility of this size requires an ecosystem of suppliers and related businesses, the total of which might run into the hundreds. Intel’s decision will transform Ohio, as much or more than Honda’s Marysville, Ohio facility did in 1979. It will positively impact the trajectory of countless people for generations. The new plant will be less than 20 miles from our headquarters in Newark, Ohio. 11 We will do all we can — as we do for all new neighbors — to welcome Intel associates to the community. As we write this, Intel folks (and everyone else) can download our ParkDirect app, choose a Park Banker (no account relationship required) and ask for help with everything from schools, to doctors, to babysitters. All inquiries receive a warm welcome, an eager attitude and an empathetic ear! 50 years (plus!) On June 30, 2021, C. Daniel DeLawder retired from active service. He began his career at Park on March 21, 1971. At the time, the bank had seven offices and $90 million in assets. Over 50 years, Dan was instrumental in leading Park through multiple expansions, acquisitions and organic growth. This is interesting, as Dan had no aspirations to be a banker. He studied to be a teacher. A chance meeting with Jerry S. Nethers led Dan to work at Park. He approached his unexpected journey as he has everything — exhaustive planning, unbounded energy and a sense of duty born in his days as an Eagle Scout. These qualities, amplified by a passion to serve, have put Dan in leadership positions wherever he’s been. A partial list includes: United Way chair, Rotary president, Ohio University board of trustees chair, Ohio Bankers League chair, and Federal Reserve Bank of Cleveland board member. Although Dan’s professional resume is impressive enough, our sense is that he would cite his marriage to Diane, their children Sara (Tom), and Matt (Sarah), and their three grandchildren as his best achievements. Dan and Diane have modeled affection, love and service to us and countless others over their 44+ years together (they are also wicked-good dancers). Fortunately, Dan is still with us, serving as the Chair of our Executive Committee and Chair of Park National Bank’s Trust Committee. And he continues his community leadership, adding energy and vision to local development projects that simply would not happen without his unique ability to paint a picture of possibility, assemble a group to work on the picture and raise the funds to make it a reality. Now he has a bit more time to hike and walk with Diane, visit their grandchildren and ride his beloved Harley. C . D A N I E L D E L AW D E R A quote to preserve perspective WA LT W H I T M A N “Keep your face always toward the sunshine, and shadows will fall behind you.” 12 New voices on the board For some time, our board’s Nominating/Corporate Governance committee (led by its gifted chair, Donna M. Alvarado) has been reviewing potential board candidates. Last year, it found two — Dr. Frederic Bertley and D. Byrd Miller III — who will widen our view of the world and enrich our deliberations on how we may serve more. If you read the press releases that announced their selections by the board, you know we have added two people who have accomplished much, and done so in ways that honor service to fellow human beings. We welcome both and look forward to learning from them as the years pass. D R . F R E D E R I C B E R T L E Y D. B Y R D M I L L E R I I I Gone too soon In the span of five weeks — near the end of 2021 and beginning of 2022 — we lost four devoted colleagues. Throughout the year, other colleagues and a number of customers lost loved ones and/or endured the pain and anxiety of illness. The two observations below have helped us navigate the fog of loss. They may not help you… but they might. We recite them here on the chance that if one person finds them useful, it is worth everyone else questioning why we included them. Importantly, you should grieve in a way that suits you; there is no right or wrong way. • • After a particularly painful personal loss years ago, a wise friend said, “Don’t ask why? Or why now?...rather, ask, “What does this permit me to do, see or think that I could not have done, seen or thought before?” Another wise person, Jim Steen (retired Kenyon College swimming coach), in a eulogy said the following: “It would be as wrong to go on without remembering as it would be to remember without going on.” 13 So in the midst of pain and loss, we will remember, and we will go on. We will keep those who are gone and their families in our thoughts and prayers. Final Thoughts We have covered a lot of ground in this letter. We applaud your endurance and appreciate your patience if you’ve made it this far. We close by thanking our Park colleagues who have moved on to their next chapter and by welcoming our new colleagues to the Park family. All of us are united in our desire to serve more. Please let us know where, when and how we may serve you and/or your family. David L. Trautman Matthew R. Miller Chairman and Chief Executive Officer President 14 Bank Leadership Todd Bogdan Chief Information Officer Adrienne Brokaw Chief Auditor Brady Burt Chief Financial Officer Tom Button Chief Credit Officer Tom Cummiskey Chief Trust and Investment Officer Bob Kent Chief Operations Officer Mark Miller Director of Corporate Services Matt Miller President Cheryl Snyder Chief Retail Officer David Trautman Chairman and CEO Laura Tussing Chief Experience Officer Jeff Wilson Chief Risk Officer 15 PRK Board of Directors William T. McConnell Emeritus, Director since 1977 Donna M. Alvarado President Dr. Frederic Bertley President and CEO C. Daniel DeLawder Chair, Executive Committee F. W. Englefield, IV President Alicia Sweet Hupp President and CEO AGUILA International COSI Park National Corporation Englefield, Inc. Sweet Manufacturing Company Director since 2013 Director since 2021 Director since 1994 Director since 2005 Director since 2015 Jason N. Judd Senior Vice President Big Lots, Inc. Stephen J. Kambeitz Private Investor Timothy S. McLain Vice President D. Byrd Miller III Managing Member & CFO Matthew R. Miller President Director since 2019 Director since 2010 McLain, Hill, Rugg & Associates, Inc. Director since 2010 William Barnet & Son, LLC Park National Corporation Director since 2022 Director since 2019 Robert E. O’Neill President Mark R. Ramser President David L. Trautman Chair and CEO Leon Zazworsky President Southgate Corporation Ohio Cumberland Gas Company Park National Corporation Mid State Systems, Inc Director since 2013 Director since 2019 Director since 2005 Director since 2003 Executive Officers Brady T. Burt Chief Financial Officer Matthew R. Miller President David L. Trautman Chair and CEO 16 Advisory Board Members C A R O L I N A D I V I S I O N David B. Barnett Retired, Park National Bank Carl R. Bartlett Retired W. Louis Bissette Jr. McGuire, Wood & Bissette Law Firm Terrence L. Cash Caman Group T. Alexander Evins Parker Poe Adams & Bernstein, LLP Marsha H. Gibbs Gibbs International George M. Groome Colton, Groome & Company John D. Kimberly Park National Bank Samuel H. Maw Jr. Retired D. Byrd Miller III William Barnet & Son, LLC Joseph M. Pazdan, II McMillan Pazdan Smith Architecture John S. Poole Retired, Carolina Alliance Bank William Allen Rogers, II Ewing Capital Partners, LLC/ Allen C. Ewing & Co. Cheryl L. Snyder Park National Bank L. Terrell Sovey Management Advisory Services Larry A. Webb KDS Commercial Properties, Webb Development, LLC W. Lewis White, Sr. W. Lewis White Company C H A R L O T T E D I V I S I O N Kenneth R. Beuley The Keith Corporation Dr. Jack M. Cathey University of North Carolina at Charlotte Louis Foreman Enventys Charles T. Hodges New Forum David L. Hood, Jr. Hood, Hargett & Associates J. Blaine Jackson Park National Bank Dennis W. Moser The Moser Group Donald Philip Renaldo, M.D. Donald Automotive Group Sara C. White CLT Residential Martin J. Grunder, Jr. Grunder Landscaping Company Richard W. Holmes Retired, Pricewaterhouse Coopers, LLP Larry H. Maxey Synchronic Business Solutions Thomas E. Niehaus Vorys Advisors LLC Adam T. Stypula Park National Bank E A S T D I V I S I O N Daniel J. Atkinson Muskingum Valley Health Centers Michael L. Bennett Second Capital Consulting, LLC Julie A. Brown Fink’s Harley-Davidson, Southside Collision, Fink’s Quality Cars and Fink’s Custom Vans Clinton W. Cameron Cameron Drilling Company Ward D. Coffman, III Coffman Law Offices Scott D. Eickelberger Kincaid, Taylor and Geyer Dr. Susan K. Hasseler Muskingum University Patrick L. Hennessey P&D Transportation Henry C. Littick, II Southeastern Ohio Broadcasting Systems Thomas M. Lyall Chair, East Division Timothy S. McLain, CPA McLain, Hill, Rugg & Associates Patrick L. Nash Park National Bank Timothy J. Thompson Primary Aim M I A M I D I V I S I O N Dr. Richard N. Adams Retired, Representative of Ohio General Assembly Tamara L. Baird-Ganley Baird Funeral Home Michael C. Bardo Retired, Hartzell Industries John A. Brown Park National Bank Rick M. Heinl Repacorp, Inc. Dr. Douglas D. Hulme Retired, Oakview Veterinary Hospital Timothy Johnston Consultant Scott E. Rasor Park National Bank C I N C I N N AT I D I V I S I O N Michael T. Brandy Brandicorp Daniel L. Earley Retired Jeanne M. Golliher Cincinnati Development Fund W. Samuel Robinson Retired, Murray Wells Wendeln & Robinson, CPAs N O R T H D I V I S I O N Robert E. Boss Park National Bank 17 Mark Breitinger Milark Industries, Inc. Michael L. Chambers J&B Acoustical, Inc. Elizabeth A. DeLaney Spherion Mid-Ohio Employment Services Chris R. Hiner Park National Bank Michael L. Kocher MKB Farms Ltd. Jeffrey S. Monica McDonald’s Linda H. Smith Ashwood, LLC Rick R. Taylor* Jay Industries, Inc. N O R T H C E N T R A L D I V I S I O N Robert E. Boss Park National Bank Timothy R. Cowen Cowen Truck Line Lois J. Fisher Lois J. Fisher & Assoc. Christopher R. Gabrelcik Lubrication Specialties, Inc. Korey M. Kidwell Kidwell & Cunningham, Ltd. William B. Levering Levering Management, Inc. Daniel L. Mathie Critchfield, Critchfield & Johnston, Ltd. Matthew D. Miller Mayor of Ashland Mark R. Ramser Ohio Cumberland Gas Company Kim M. Rose Critchfield, Critchfield & Johnston, Ltd. Vickie A. Sant Retired, Park National Bank Roger E. Stitzlein* Loudonville Farmers Equity Chris D. Tuttle Amish Oak Furniture Company Gordon E. Yance Retired, Park National Bank P A R K N AT I O N A L B A N K B O A R D O F D I R E C T O R S Donna M. Alvarado AGUILA International C. Daniel DeLawder Park National Bank F.W. Englefield, IV Englefield, Inc. Jason N. Judd Big Lots, Inc. Stephen J. Kambeitz Private Investor William T. McConnell Director Emeritus, Park National Bank Matthew R. Miller Park National Bank Robert E. O’Neill Southgate Corporation David L. Trautman Park National Bank Leon Zazworsky Mid State Systems, Inc. S O U T H E A S T D I V I S I O N Dean DeRolph Kumler Collision and Automotive Jennifer Johns Friel Midwest Fabricating Company Leonard F. Gorsuch Fairfield Homes/Gorsuch Construction James L. McLain, II J. McLain CPA Group S. Alan Risch Risch Drug Stores Laura F. Tussing Park National Bank Jennifer Gorsuch Walters Fairfield Homes/Gorsuch Construction Stephen G. Wells Retired, Park National Bank W E S T C E N T R A L D I V I S I O N R. Andrew Bell Marsh & McLennan Agency John A. Brown Park National Bank Alicia Sweet Hupp Sweet Manufacturing Company Thomas P. Loftis Midland Properties John McKinnon Clark Schaffer Hackett & Co. Scott D. Michael Michael Farms Dr. Karen E. Rafinski The Registry Chester L. Walthall Walthall Holding Co. Inc. Robert A. Warren Hauck Bros. W E S T D I V I S I O N Steven C. Badgett Retired, Park National Bank Tyeis Baker-Baumann Rebsco John A. Brown Park National Bank Travis J. Faber Faber & Associates Travis L. Fliehman Fliehman Law Group Wayne Deschambeau* Wayne Healthcare Jeffrey E. Hittle Hittle Buick GMC Michael J. Pax Pax Machine Works *Retired as of 12/31/21 Our Locations $4.5 million CO M M UNIT Y DONAT IONS 69 COMMUNITIES 1,744 AS SOCIATES 96OFFICES *Information as of or for the year ended 12/31/2021 18 Metro Locations Clermont, Franklin and Hamilton counties (OH), Jefferson County (KY), Mecklenburg County (NC) MARKE T PRESIDE NT S Pete Cassanos 200 S. Civic Center Drive Columbus, OH 43215 W. Andrew Holden 545 South 3rd Street Louisville, KY 40245 Blaine Jackson 1111 Metropolitan Avenue Charlotte, NC 28204 614-228-5024 502-975-7170 704-943-5718 pete.cassanos@ parknationalbank.com andrew.holden@ parknationalbank.com blaine.jackson@ parknationalbank.com Adam Stypula 3825 Edwards Road Cincinnati, OH 45209 513-718-6045 adam.stypula@ parknationalbank.com T O TA L LOA N S T O TA L D E P O S I T S T R U S T A S S E T S $590,407 CO M M UNIT Y DONAT IONS 7COMMUNITIES 155 AS SOCIATES 9OFFICES 19 Carolina Region Buncombe and Henderson counties (NC) Anderson, Greenville, Pickens and Spartanburg counties (SC) REGIONAL PRESIDE NT T O TA L LOA N S John Kimberly 200 South Church Street Spartanburg, SC 29306 864-208-0844 john.kimberly@ parknationalbank.com RE G IONAL LE A DE R S Tim Camp Commercial Banking Leslie Minnis Home Lending Coleman Edmunds Retail Banking Jim Honeycutt Trust and Investments T O TA L D E P O S I T S $209,426 COMMUNIT Y DONATIONS 6 COMMUNITIES T R U S T A S S E T S 86 AS SOCIATES 7 OFFICES 20 Central Ohio Region Athens, Fairfield, Hocking and Licking counties REGIONAL PRESIDE NT T O TA L LOA N S Laura Tussing 50 North Third Street Newark, OH 43055 740-681-8218 laura.tussing@ parknationalbank.com RE G IONAL LE A DE R S Bryan Campolo Commercial Banking Erica Chance Consumer Lending Brian Elder Home Lending Eric Croft Retail Banking Laura Tussing Trust and Investments T O TA L D E P O S I T S $1,708,230 COMMUNIT Y DONATIONS 13 COMMUNITIES T R U S T A S S E T S 193 AS SOCIATES 17 OFFICES 21 Eastern Ohio Region Coshocton, Guernsey, Muskingum, Perry and Tuscarawas counties REGIONAL PRESIDE NT T O TA L LOA N S Pat Nash 14 South Fifth Street Zanesville, OH 43701 740-455-7207 patrick.nash@ parknationalbank.com RE G IONAL LE A DE R S Alton Thompson Commercial Banking Matt Colwell Consumer Lending Paula Meadows Home Lending Steve Haren Retail Banking Jody Spencer Trust and Investments T O TA L D E P O S I T S $382,844 COMMUNIT Y DONATIONS 8COMMUNIT IES T R U S T A S S E T S 110 AS SOCIATES 14OFFICES 22 Northern Ohio Region Ashland, Crawford, Holmes, Knox, Marion, Morrow, Richland and Wayne counties REGIONAL PRESIDE NT T O TA L LOA N S Bob Boss 1 South Main Street Mount Vernon, OH 43701 740-399-5166 robert.boss@ parknationalbank.com RE G IONAL LE A DE R S Frank Wagner Commercial Banking Jerry Simon Consumer Lending Ryan Smith Home Lending Rachelle Dallas Retail Banking Todd Hawkins Trust and Investments T O TA L D E P O S I T S $988,567 COMMUNIT Y DONATIONS 18 COMMUNIT IES T R U S T A S S E T S 234 AS SOCIAT ES 24 OFFICES 23 Western Ohio Region Champaign, Clarke, Darke, Greene, Mercer and Miami counties REGIONAL PRESIDE NT T O TA L LOA N S John Brown 40 South Limestone Street Springfield, OH 45502 937-324-6877 john.brown@ parknationalbank.com RE G IONAL LE A DE R S Pat Rastatter Commercial Banking Eric McKee Consumer Lending Scott Rasor Home Lending Connie Craig Retail Banking Ken Magoteaux Trust and Investments T O TA L D E P O S I T S $592,766 COMMUNIT Y DONATIONS 17 COMMUNITIES T R U S T A S S E T S 182 AS SOCIATES 24 OFFICES 24 Shareholder Information Stock Listing NYSE AMERICAN Symbol – PRK CUSIP #700658107 General Shareholder Inquiries Park National Corporation Brady Burt, Chief Financial Officer and Secretary 50 North Third Street Post Office Box 3500 Newark, Ohio 43058-9983 740-322-6844 brady.burt@parknationalbank.com Dividend Reinvestment Plan The Corporation offers a plan whereby participating shareholders can purchase additional Park National Corporation common shares through automatic reinvestment of their regular quarterly cash dividends. All commissions and fees connected with the purchase and safekeeping of the common shares are paid by the Corporation. Details of the plan and an enrollment card can be obtained by contacting the Corporation’s Stock Transfer Agent and Registrar as indicated below. Direct Deposit of Dividends The Corporation’s shareholders may have their dividend payments directly deposited into their checking, savings or money market account. This direct deposit of dividends is free for all shareholders. If you have any questions or need an enrollment form, please contact the Corporation’s Stock Transfer Agent and Registrar as indicated below. Stock Transfer Agent and Registrar The Park National Bank Shareholder Services Post Office Box 1270 1 South Main Street Mount Vernon, Ohio 43050-1270 740-399-5208 or 800-837-5266 ext. 5208 shareholderservices@parknationalbank.com Form 10-K All forms filed by the Corporation with the SEC (including our Form 10-K for 2021) are available on our website by clicking on the “SEC Filings” section and then the “Documents/SEC Filings” section of the “Investor Relations” page. These forms may also be obtained, without charge, by contacting the Secretary as indicated above. Website parknationalcorp.com parknationalcorp.com 50 North Third Street, Newark, OH 43055 

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