Park National Corp.
Annual Report 2022

Plain-text annual report

Annual Report Park National Corporation Annual Report | 1 2022 Table of Contents L E T T E R TO S HA RE HOLDE RS At a Glance 2 02 2 HIGH LIG HT S Associate Engagement Technical Capabilities Financial Strength CO MM UN IT Y IM PACT BANK LE ADE RSH IP & LOCATIONS 3 5 8 8 11 12 14 18 L E T T E R T O S H A R E H O L D E R S Dear fellow shareholders, This letter usually starts with a recap of our favorite numbers. This year is no exception. Here are ours for the last several years: Return on Average Equity (ROAE) 13.78% 14.45% 12.68% 11.14% 2022 2021 2020 2019 Return on Average Assets (ROAA) 1.48% 1.56% 1.38% 1.21% Net Interest Margin (NIM) 3.80% 3.69% 3.93% 3.89% David L. Trautman Chair and Chief Executive Officer Matthew R. Miller President Earnings Per Share (EPS) - Diluted $9.06 $9.37 $7.80 $6.29 Efficiency Ratio1 61.24% 61.27% 62.83% 66.35% Normally, you would see the most recent three years. This year, we added 2019, because it was the last year before COVID. The 2½ years of COVID, COVID effects, COVID restrictions, etc. qualified as extraordinary circumstances, in our opinion. Thus, we wanted to give you an “apples to apples” comparison, i.e., 2022 to 2019. Over this period, four of our favorite numbers (ROAE, ROAA, Efficiency Ratio1 and EPS) improved; one (NIM) did not. You will find more details on our financial performance in our Form 10-K. We don’t normally comment on PRK stock price, and we won’t violate our canon here. However, we believe the table below is instructive. Generally, when Earnings Per Share increase, the stock price does as well. 2022 2019 Earnings Per Share (EPS) - Diluted $9.06 $6.29 Year End PRK Price/Share $140.75 $102.38 Price/Earnings Ratio 15.5 16.3 Each year brings its own adventures. We began 2022, as we do each year, with a solid plan ― a budget based on our best understanding of how the year would unfold. Coaches, teachers, and other leaders will tell you that while planning is essential, plans less so. The reality is that when the game begins, the year starts, the lights go on, etc., unknown factors and shifting conditions begin to bear upon the plan. Ideally, leaders and organizations flex with this new information, adjusting their conclusions to the new evidence. So it was for us this year, and is every year. 1 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 includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustments were $3.5 million, $2.9 million, $2.9 million, and $3.0 million for the years ended December 31, 2022, 2021, 2020 and 2019 respectively. Park National Corporation Annual Report | 3 Not necessarily unprecedented During the pandemic, one of the words used most often to describe the then-current state of affairs was “unprecedented.” Painful, yes. Traumatic, yes. Uncomfortable, clearly. But unprecedented? No. There have been, and sadly, will be other pandemics. As INTE RE ST R ATES began to increase last year, it seemed that we heard that word — unprecedented ― again. But of course interest rates have risen and fallen many times over decades. We expected that inflation and interest rates would increase at some point, but how much and when was anybody’s guess. We attempt to position our balance sheet so swings in interest rates — either way — do not unduly impact earnings. As it turned out, our balance sheet was well- positioned as rates increased. You can see how our Net Interest Margin increased in 2022 as rates increased: Quarter Net Interest Margin 1st 2nd 3rd 4th 3.55% 3.84% 3.81% 3.98% Banking looks different today There’s no doubt the banking experience and the places and pathways in which we deliver service look a little different than they used to. Our customers connect with us differently than they did 5, 10 or even 20 years ago. When customer service preference winds shift, we alter our service sails. Last year, roughly 80% of our inquiries and transactions were completed through DIGITAL CHAN N E LS. This trend has accelerated and won’t slow down soon. 4 | Park National Corporation Annual Report We have invested in people and tools to help us better understand when, how and where customers engage with us. We will continue to invest in digital channels and more efficient processes while remaining who we are and have always been. We prioritize relationships and retain the spirit of humanity in every connection possible. More than employees We rarely use the term “employees” here. The people who work for Park are colleagues; they are members of the Park family. The organization will succeed to the extent each member succeeds. Each is a leader in her or his own right; each has a view, an opinion, a voice or an ear that others do not. So, last year we asked our colleagues for their opinions on our BE NE FIT S lineup. Following is a partial list of what they told us and how we responded: Associates value Benefit that addresses this Paid time off Enhanced vacation and personal time policies, paid family caregiver leave, paid parental leave, paid military leave and extended bereavement leave Saving for retirement Pension plan amendment creating a more modernized and simplified plan design while still offering a valuable benefit Wellbeing Enhanced employee assistance program and better health insurance options (VSP vision insurance) Our paid time off and pension plan benefits are now among the best out there. Rewarding our colleagues with competitive benefits is the right thing to do, and we’re happy to do it. Other favorite benefits will continue, like our employee KSOP plan with generous company match. We’ll continue to evaluate benefits in 2023 to ensure we’re current with how we reward associates for their dedication, loyalty and service. Traditionally, we have woven into this letter stories about our amazing Park bankers. They are remarkable people who live and love to serve and who work tirelessly to help everyone with whom they come in contact flourish to the extent their abilities, energy and ambition permit. This year you will see our colleagues and their good work featured throughout the annual report. Balancing urgency and reflection Past CEOs Bill McConnell and John Alford used to remind us to operate with a sense of urgency. Their predecessor Everett Reese was famous for getting quickly to the point, then acting. We share that urgency today. We are also investing a great deal in people, systems and processes that require a substantial amount of reflection. We now have roughly 309,000 consumer deposit customers, 140,000 consumer loan customers and 7,500 trust customers. If we are a fraction of a degree off with a system or process change, the compounding effect of that error quickly grows beyond the ability of an “all hands on deck” solution. Think of it like this: If a plane departs Los Angeles for New York and begins the trip 3½ degrees off course to the south, it will end up near Washington, D.C. (thanks to James Clear in Atomic Habits). At a Glance Park National Corporation is a family of community banking teams that deliver an exceptional breadth and depth of resources to individuals and businesses. Our culture is deeply rooted in the values of service and philanthropy, and we believe strong communities are built with local volunteers, donations and leadership. We believe the way we treat our customers, associates, and communities is what sets us apart from the competition and sustains our success. 95O FFIC ES 115 ATMS 1,794 AS SO CI AT ES 4STAT ES Park National Corporation Annual Report | 5 Thus, we deliberate, we reflect and we play out multiple The world is changing; the world has always been scenarios to ensure that our final decisions are (a) changing. There will be innumerable things beyond accurate, (b) scalable and (c) in the best interests of our control, save one: our response. And we intend our customers, colleagues and communities. Our to ensure our responses remain positive, eager and deliberations, while seeming devoid of urgency, welcoming. ultimately permit us to act more urgently than if we had acted first without forethought. Summer of Celebration As pandemic restrictions were lifted last year, we found that our in-person gatherings took on the character of a family reunion, marked by spontaneous smiles, happy chatter and lots of catching up. We discovered, or more appropriately, rediscovered, the joy of being together. We missed seeing each other. To capture and harness this spirit of joy, we gave leaders some funds and urged them to gather colleagues and CE L E BR AT E ― hence, our Summer of Celebration. Where are we going? We have a number of new colleagues, many new customers and probably a few new shareholders. One question we often get is, “Where is Park going?” In business schools, this question might be, “What’s your vision for the organization?” Ours is simple and straightforward: We want to positively influence everyone with whom we come in contact. It proved such a success that we are going to repeat it, As we are bankers, this most often comes in the form but this time throughout the entire year. In 2022, Park of helping people with their financial affairs. But, Park colleagues enjoyed axe throwing, baseball games, bankers see this as a byproduct of helping people with barbecues and picnics (see pictorial evidence later in things that may have nothing to do with their financial our report). We look forward to hearing about these affairs — volunteering; speaking to a class; introducing and other gatherings throughout 2023. Change CH AN GE MANAGE ME N T seems to draw an unusually large amount of commentary, perhaps because change is constant. It is our response to change that will dictate whether we advance or retreat in the face of it. Victor Frankl discussed this at length in his book, Man’s Search for Meaning. He tells readers that each of us controls our response to anything, including change. At Park, we view change as a catalyst for growth, not a reason to retreat. Headwinds and steep slopes can be used to go faster; they need not be feared. new neighbors to local resources; supporting a cause or organization; paying respects to a family at calling hours. If we do these things well, then we are more than an “option;” we are a person, a Park banker who has become a trusted source of truth, empathy and competence. Widely dispersed; unified in purpose We have physical locations in four states. We have colleagues in 14 states. Regardless of our location, we are bound by a common desire to Serve More ― customers and communities alike. 6 | Park National Corporation Annual Report Here are just a few of the hundreds of comments we received from community groups over the past year: Special recognition “Thank you and Park for your support of Vista Village. We are grateful for your generosity, investment in the project, and your desire for your associates to provide hands-on volunteer assistance.” VISTA VILL AGE COLUMBUS, OH “Your company’s generosity is making a lasting difference in the world and changing the trajectories of countless lives through education. Because of your sponsorship, students living in poverty will no longer arrive at school empty-handed, and instead, will be able to learn and grow into their fullest potential. Your support will provide essential school supplies for 127,000 children in nearly 200 high-need schools across the six districts we serve ― enabling them to be confident to learn and succeed in school, and in life.” CL AS SROOM CENTR AL CHARLOTTE, NC “I want you to know how truly appreciative we are of your support of our ‘hand up not a handout’ philosophy. On behalf of our board, staff, volunteers and partner families at Habitat MidOhio, thank you for making a difference. Together we will continue to build needed homes and strong, vibrant communities.” H ABITAT FOR HUMANIT Y MID - O HIO COLUMBUS, OH “Thank you so much to Park National Bank for your generosity and contribution toward the Dr. Harvey Sloane [Patient] Assistance Fund program. Together, we can change and save lives.” PARK DUVALL COMMUNIT Y HE ALTH C EN TE R LOUISVILLE, KY Dispersed in geography, united in service. Park bankers care. Many associates with distinguished careers spanning 30+ years retired in 2022. We extend our gratitude for their decades of service to customers, colleagues and communities. The end of the year also brought retirements for a number of our advisory board members. We extend our most sincere gratitude for sharing their time, business acumen and experience with us. We are better because of them. Final thoughts Recently, we had a chance to hear Captain Charlie Plumb, a U.S. Navy fighter pilot who flew combat missions in Vietnam. After 75 missions, his plane was shot down. Plumb ejected and parachuted into enemy hands. After spending six years in captivity and returning home, he had a chance encounter with the person who packed his parachute. Captain Plumb shared the significance of packing parachutes for others, offering that a simple service could have profound and lasting impacts. Those who seek to pack parachutes look for opportunities to serve beyond themselves, to serve without expectation of repayment or recognition. This approach parallels our desired mindset — to see beyond ourselves in service to others and to view others as people. We pack parachutes for customers, colleagues and community members every day. Please let us know if we can pack a parachute for you, your family or your friends. Thank you for your support. Park National Corporation Annual Report | 7 Associate Engagement SUMME R OF CE L E BR AT ION As an expression of gratitude for our associates, we hosted a variety of appreciation events this summer. It presented a great opportunity for colleagues to reconnect after the pandemic kept us apart for so long. Our leaders got creative and invited teams and families to enjoy food trucks, balloon animals, axe throwing, a riverboat cruise, baseball games, an afternoon at the zoo, Top Golf and more. SPECIAL BONU S RE COGN ITION As an expression of gratitude and recognition for driving strong results, a special bonus was awarded to associates in November. FLE XIBLE WO RK A RR ANG E M E N T S Introduced as a result of the pandemic, flexible work arrangements (FWA) have proven to be mutually beneficial to the bank and associates. We believe FWAs promote job satisfaction, allow associates more flexibility to meet personal and professional obligations, encourage increased productivity, reduce turnover and increase engagement. Fifty-three percent of our workforce has an active FWA, working in a remote or hybrid environment, in 14 states. UPDATE D BE NE FIT S PACK AGE As part of our strategic plan, we did a comprehensive review of all benefits and evaluated feedback from our 2021 benefits survey. The result was a modernized package that better aligns with associate wants and needs. New in 2023 are personal paid time off, holiday pay for part-time associates, extended bereavement leave, military leave, more parental time off, and pension enhancements. We continue to offer an Employee Stock Ownership Plan with a 50% company match, health and life insurance, dependent care assistance, a health flexible spending plan and long-term disability leave. We also offer tuition reimbursement for qualified schooling and an employee assistance program which provides associates and family members with access to confidential counseling and mental health support. 8 | Park National Corporation Annual Report Associates enjoy a Summer of Celebration in a variety of ways. Park National Corporation Annual Report | 9 “It’s exciting to be part of an organization that’s intentional about building innovation into our culture and witnessing how it transforms the customer experience.” Sara Jackson, Internal Communications 10 | Park National Corporation Annual Report Technical Capabilities E N HANCE D DATA SCIE NCE CA PABI L IT IE S Better access to data and more sophisticated data-driven insights are important drivers for the bank’s strategy. With the foundation of the enterprise data warehouse now complete, we are layering on new capabilities by adding talented colleagues to carry the discipline forward. An in-house data team, including chief information officer, lead data scientist, lead data engineer and lead data architect, positions us well for supporting the organization’s data-driven initiatives. HUMA N CONNE CTION THROU G H IN N OVAT ION : PAR KDIR ECT Park continues to lead the way with its innovative personal banking tool, ParkDirect. This unique and powerful solution allows customers to foster deeper connections through digital conversations with their own personal banker. We continue to see customer relationships being transformed through the convenience and humanity of ParkDirect and are exploring integration of the platform into Park’s mobile banking app in 2023. TE A MS AND TE CH U ND E RG O ST R ATE GI C U PG R AD E S To better support our business lines and the bank’s initiatives, the Information Services team made some strategic changes to roles and responsibilities. The alignment allows the department to connect more directly and deepen relationships with business lines, while building new capabilities for supporting cloud and data initiatives. Protecting our customers’ sensitive information remains a top priority and we continually review and update our systems to align with the best cybersecurity practices. TECHNOLOGY D R IVE S BE T TE R IN - BR AN CH E X PE R IE N C E As branch banking evolves to be more consultative and less transactional, we piloted a new solution that allows customers to engage with us when, where and how they prefer to meet. Appointment scheduling, available online and in-branch, gives customers a dedicated time to talk with a banker at their preferred location or channel. Park National Corporation Annual Report | 11 Financial Strength LE NDING AND LE ND ING A HA N D Park’s loan performance held strong across multiple categories in 2022, and credit quality remained high due to the dedication of our bankers. New partnerships with auto dealerships brought our indirect lending partners to more than 700 by year-end. Even amid market challenges, Scope Aircraft Finance remains among the top lenders in the industry. NE W TOOLS SUPPORT B U SIN E S S C U STOM E RS To keep pace with advancing technology, we launched a new business and commercial online banking platform. The online and app-based experiences now feature more security, flexibility and ease, allowing us to better support our business customers. Behind the scenes, our new commercial loan origination system was rolled out organization wide, providing a more comprehensive solution for lenders, analysts and loan assistants to serve customers from application to closing. OF FIC E RE LOCAT IONS A ND E X PAN SION Park expanded its presence in eastern North Carolina by opening a loan production office in Greensboro. The de novo operation brings new opportunities and relationships to the bank and closed $41.5 million in loans in its first 7 months in operation. The Charlotte Office relocated to a midtown location to take advantage of better accessibility, a full- service banking center and onsite parking. The team welcomed customers to the new location with a fall barbecue. NE W ATM FLE E T LE V E LS U P S E L F - SE RVIC E Park’s rollout of entirely new ATM technology was completed in 2023. The 18-month project infused $8.3 million into the bank’s 115 ATMs. Customers now enjoy single card insertion, enhanced security features, brighter screens and larger text for improved readability. 12 | Park National Corporation Annual Report “Most people forget about financing during planning your business. Park National was very helpful during this process.” Krishna Rayapudi, MD, Hilliard Endo Center Park National Corporation Annual Report | 13 Community Community Impact Impact COM M UN IT Y COM MITME N T Years ago, Park CEO John Alford taught us, “If we take care of our community, our community will take care of us.” So it has been, we always have — and always will — keep the best interests of our communities in mind. Doing so is a core part of our brand and culture. Our customers know they can rely on Park to support the people and organizations working to build and care for our communities. In 2022, Park and gave more than $5.2 million to organizations that focus on social services, economic development, education, housing, financial education, and health and wellness. D IVE RSIT Y, E QUIT Y & INCLU SION (D E I) Our commitment to diversity and inclusion means providing every client or prospective client an equal opportunity to succeed financially. We believe it also means supporting a wide variety of community organizations and programs, and hiring associates from different backgrounds, locations and experiences. In 2022, we expanded our DEI efforts by exploring new avenues for associate training and development. A group of associates attended a pilot DEI-focused workshop that included the opportunity to consider authentic stories from around the world that draw people into a bigger story where everyone is included. The purpose of the training is to:    Create conditions that foster safe, honest, self-reflective and productive dialogue; Encourage connection, listening and curiosity to further appreciate differences and experiences; and Apply frameworks and tools to promote inclusion and influence change. Park’s board, leaders and DEI task force will continue to pursue key goals in 2023 related to diversity, equity and inclusion. FINA NCIAL LITE R ACY Park believes strongly in teaching our youth the value of saving for the future. We partner with local schools to bring Junior Achievement and programming about credit and savings to classrooms. In recent years, we’ve hosted the American Bankers Association’s Lights, Camera, Save national video contest and encouraged students to enter. In 2022, a Lancaster (OH) High School student submitted the winning video titled “The Money Tree.” Our mortgage lenders work with realtors and other housing agencies to promote homebuyer education. It helps people understand what they need to do to be ready to pursue home ownership. In 2022, we hosted first-time homebuyer seminars in each of our regions. Park National Corporation Annual Report | 15 By the Numbers COM MUNIT Y D ONATIONS $5,204,961 VOLUNTEER HOU RS 19,940+ ORGANIZ ATIONS 1,602 ARTS & CULTURE CLUBS & AGENCIES HOUSING & ECONOMIC DEVELOPMENT UNITED WAY & SOCIAL SERVICE GROUPS YOUTH EDUCATION ARTS & SPORTS 14% 20% 11% 20% 35% 16 | Park National Corporation Annual Report AFFOR DABLE H OU SING & COM M UN IT Y DE VE LOPM E N T Park has supported construction, rehabilitation and preservation of affordable housing for more than 30 years through investments in low-income housing tax credits through Ohio Capital Corporation for Housing. As the only investor to have participated consistently from the beginning (1991), we have committed over $188 million to date. Over the past three years, Park made more than $150 million in community development loans, which directly support affordable housing, economic development, revitalization and stabilization.     In 2022, Park contributed more than $211,000 to housing initiatives, including Habitat for Humanity, in communities across our service area. Habitat building projects are popular among associates, with Park volunteers contributing hundreds of hours over the last decade. We’re providing financing for a 52-unit housing project for human trafficking victims. The project, named Harriet’s Hope for slave-turned-abolitionist Harriet Tubman who helped others escape slavery, is set to be built in 2023. We are a major funding source for a 44-unit apartment complex for low-income seniors. Park hosted a roundtable event with affordable housing developers in Charlotte to discuss opportunities and challenges. COMMUNIT Y HOM E LE N D ING In 2022, a community home lending team was formed to promote home lending in new and bigger ways. These mortgage lenders focus on community outreach and presentations to educate potential homebuyers about programs that may benefit them. They offer first-time homebuyer and other specialized assistance programs including our Home Sweet Home loans. The team is committed to finding new ways to meet individuals and families where they are and helping make homeownership a reality. Park National Corporation Annual Report | 17 Bank Leadership Todd Bogdan Chief Operations Officer Adrienne Brokaw Chief Auditor Brady Burt Chief Financial Officer Tom Button Chief Credit Officer Bryan Campolo Metro Region Leader Tom Cummiskey Chief Trust and Investment Officer Malory Dcosta Chief Information Officer Mark Miller Corporate Services Director Matt Miller President Cheryl Snyder Chief Retail Officer David Trautman Chair and CEO Laura Tussing Chief Experience Officer Jeff Wilson Chief Risk Officer 18 | Park National Corporation Annual Report Board of Directors William T. McConnell Emeritus, Director since 1977 Donna M. Alvarado President Frederic Bertley, Ph.D. 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 and CFO Stephen J. Kambeitz Entrepreneur Timothy S. McLain Principal D. Byrd Miller III Retired Matthew R. Miller President Express, Inc. Dark Horse CPAs William Barnet & Son, LLC Park National Corporation Director since 2019 Director since 2010 Director since 2010 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 Park National Corporation Annual Report | 19 Advisory Board Members C A R O L I N A R E G I O N David B. Barnett Retired, Park National Bank Carl R. Bartlett Retired, Wachovia W. Louis Bissette Jr. McGuire, Wood & Bissette Law Firm Terrence L. Cash Caman Group, Inc. T. Alexander Evins Parker Poe Adams & Bernstein, LLP George M. Groome Colton, Groome & Company John D. Kimberly Park National Bank Samuel H. Maw Jr. Retired, Denny’s Inc. D. Byrd Miller III Retired, 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, Inc. Larry A. Webb KDS Commercial Properties, Webb Development, LLC W. Lewis White Sr. W. Lewis White Company, Inc. C E N T R A L R E G 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 C H A R L O T T E M E T R O Kenneth R. Beuley The Keith Corporation Jack M. Cathey, Ph.D. University of North Carolina at Charlotte Louis Foreman Enventys Charles T. Hodges New Forum, Inc. David L. Hood Jr. Hood, Hargett & Associates Dennis W. Moser The Moser Group 20 | Park National Corporation Annual Report Donald Philip Renaldo, M.D. Donald Automotive Group Sara C. White Mooresville Realty C I N C I N N A T I M E T R O Michael T. Brandy Brandicorp Daniel L. Earley Retired, Park National Bank Jeanne M. Golliher Retired, Cincinnati Development Fund Martin J. Grunder Jr. Grunder Landscaping Company Richard W. Holmes* Retired, Pricewaterhouse Coopers, LLP Larry H. Maxey Synchronic Business Solutions, LLC Thomas E. Niehaus Vorys Advisors LLC Adam T. Stypula Park National Bank E A S T R E G 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 Law Offices Susan K. Hasseler, Ph.D. Muskingum University Patrick L. Hennessey P&D Transportation, Inc. Henry C. Littick II Southeastern Ohio Broadcasting Systems Thomas M. Lyall Retired, Park National Bank Timothy S. McLain, CPA Dark Horse CPAs Patrick L. Nash Park National Bank Timothy J. Thompson Primary Aim N O R T H R E G I O N Robert E. Boss Park National Bank Mark Breitinger Milark Industries, Inc. Michael L. Chambers J&B Acoustical, Inc. Timothy R. Cowen Cowen Truck Line Elizabeth A. DeLaney Spherion Mid-Ohio Employment Services Lois J. Fisher Lois J. Fisher & Assoc. Christopher R. Gabrelcik Lubrication Specialties, Inc. Christopher R. Hiner Park National Bank Korey M. Kidwell Kidwell & Cunningham, Ltd. Michael L. Kocher MKB Farms Ltd. William B. Levering Levering Management, Inc. Daniel L. Mathie Critchfield, Critchfield & Johnston, Ltd. Jeffrey S. Monica McDonald’s Linda H. Smith Ashwood, LLC Chris D. Tuttle Amish Oak Furniture Company Gordon E. Yance Retired, Park National Bank W E S T R E G I O N Dr. Richard N. Adams Retired, Representative of Ohio General Assembly Steven C. Badgett Retired, Park National Bank Tamara L. Baird-Ganley Baird Funeral Home Tyeis Baker-Baumann Rebsco Michael C. Bardo* Retired, Hartzell Industries R. Andrew Bell* Marsh & McLennan Agency John A. Brown Park National Bank Travis J. Faber Faber & Associates Travis L. Fliehman* Fliehman Law Group Rick M. Heinl* Repacorp, Inc. Jeffrey E. Hittle Hittle Buick GMC Douglas D. Hulme, DVM Retired, Oakview Veterinary Hospital Alicia Sweet Hupp Sweet Manufacturing Company Timothy Johnston Consultant Thomas P. Loftis Midland Properties, Inc. John McKinnon Clark Schaffer Hackett & Co. Scott D. Michael Michael Farms Michael J. Pax* Pax Machine Works, Inc. Dr. Karen E. Rafinski* The Registry W. Samuel Robinson Retired, Murray Wells Wendeln & Robinson, CPAs Chester L. Walthall Walthall Holding Co. Inc. Robert A. Warren* Hauck Bros. *Retired as of 12/31/22 Metro Locations Clermont, Franklin and Hamilton counties (OH), Jefferson County (KY), Guilford and Mecklenburg counties (NC) MAR KE T PRESIDE NT S Brady Waltz 200 South Civic Center Drive Columbus, OH 43215 W. Andrew Holden 545 South Third Street Louisville, KY 40245 Tim Ignasher 1300 Baxter Street Charlotte, NC 28204 Bryant Fox 3825 Edwards Road Cincinnati, OH 45209 614-228-9915 502-975-7170 704-943-5757 513-718-6057 brady.waltz@ parknationalbank.com andrew.holden@ parknationalbank.com tim.ignasher@ parknationalbank.com bryant.fox@ 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 $971,773 CO MMUNIT Y DO NAT IONS 157 AS SOCIATES 7C OM M U NIT IES 3,643 VOLU NTE ER HOU R S 10OFFIC ES Park National Corporation Annual Report | 21 Carolina Region Buncombe and Henderson counties (NC) Anderson, Greenville, Pickens and Spartanburg counties (SC) RE GIONAL PRESIDE NT T O TA L LO A N S John Kimberly 200 South Church Street Spartanburg, SC 29306 864-208-0844 john.kimberly@ parknationalbank.com RE GIONAL LE ADE 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 T R U S T A S S E T S 22 | Park National Corporation Annual Report $231,280 C OM M U NIT Y DO NATION S 79 AS SO C IATES 6 C OM M UN ITIE S 2,375 VOLU NTE ER HOURS 7 O FFICES Central Ohio Region Athens, Fairfield, Hocking and Licking counties RE GIONAL PRESIDE NT T O TA L LO A 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 Laura Tussing 50 North Third Street Newark, OH 43055 740-681-8218 laura.tussing@ parknationalbank.com RE GIONAL LE ADE R S Corey Alton Commercial Banking Rob Springer Consumer Lending Director Erica Chance Consumer Lending Chris Hiner Home Lending Director Brian Elder Home Lending Eric Croft Retail Banking Luann Snyder Trust and Investments $1,823,954 C OM M U NIT Y DONATI ONS 194 AS SO CIATE S 13 C OM M UN ITIE S 4,770 VOLU NTE ER HOURS 17 O FFICES Park National Corporation Annual Report | 23 Eastern Ohio Region Coshocton, Guernsey, Muskingum, Perry and Tuscarawas counties RE GIONAL PRESIDE NT 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 Pat Nash 14 South Fifth Street Zanesville, OH 43701 740-455-7207 patrick.nash@ parknationalbank.com RE GIONAL LE ADE R S Alton Thompson Commercial Banking Matt Colwell Consumer Lending Paula Meadows Home Lending Steve Haren Retail Banking Jody Spencer Trust and Investments 24 | Park National Corporation Annual Report $440,700 C OM M U NIT Y DON AT IONS 101 AS SO CIATE S 8C OM M U NITIE S 2,500 VOLU NTE ER HOURS 13O FFICES Northern Ohio Region Ashland, Crawford, Holmes, Knox, Marion, Morrow, Richland and Wayne counties RE GIONAL 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 GIONAL LE ADE R S James Hobson 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 T R U S T A S S E T S $1,039,177 C OM M U NIT Y DON AT IONS 230 AS SO CIATE S 18 C OM M UN ITIE S 4,000 VOLU NTEER HO URS 24 O FFICES Park National Corporation Annual Report | 25 Western Ohio Region Champaign, Clarke, Darke, Greene, Mercer and Miami counties RE GIONAL PRESIDE NT 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 John Brown 40 South Limestone Street Springfield, OH 45502 937-324-6877 john.brown@ parknationalbank.com RE GIONAL LE ADE R S Pat Rastatter Commercial Banking Eric McKee Consumer Lending Scott Rasor Home Lending Connie Craig Retail Banking Ken Magoteaux Trust and Investments 26 | Park National Corporation Annual Report $619,767 C OM M U NIT Y DONATI ONS 188 AS SO CIATE S 17 C OM M UN ITIE S 2,653 VOLU NTEER H OURS 24 O FFICES 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 740-399-5516 investor@parknationalbank.com Dividend Reinvestment Plan Park 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 Park. Details of the plan and an enrollment card can be obtained by contacting Park’s stock transfer agent and registrar as indicated below. Direct Deposit of Dividends Park 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 Park’s stock transfer agent and registrar as indicated below. Stock Transfer Agent and Registrar Broadridge Shareholder Services: P.O. Box 1342, Brentwood, NY 11717 844-976-0739 | shareholder@broadridge.com | https://shareholder.broadridge.com/prk Overnight mail: Broadridge Shareholder Services, Attn: IWS: 1155 Long Island Avenue, Edgewood, NY 11717 Form 10-K All forms filed by the Corporation with the SEC (including our Form 10-K for 2022) 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 Park National Corporation Annual Report | 27 parknationalcorp.com 50 North Third Street, Newark, OH 43055 28 | Park National Corporation Annual Report 

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