Park National Corp.
Annual Report 2023

Plain-text annual report

A N N U A L R E P O R T 2023 Park National Corporation Annual Report ▶ 1 Table of Contents L E T T E R TO S HA RE HOLDE RS At a Glance 2 02 3 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 Fellow shareholders, Your authors wrestled with at least 20 eye-catching, click-inducing draft openings to this letter. Some of the discarded candidates include: Last year found the world torn by war, political division, economic uncertainty and a liquidity stampede that led to at least three bank failures… Over 115 years, we have seen a lot… Five score and 15 years ago, your bank began in a small office on the square… Yikes. So much for an arresting open. Here are our favorite numbers: Return on Average Equity (ROAE) Return on Average Assets (ROAA) Net Interest Margin (NIM) Earnings Per Share (EPS) - Diluted Efficiency Ratio1 2023 2022 2021 2020 2019 11.55% 13.78% 14.45% 12.68% 11.14% 1.27% 1.48% 1.56% 1.38% 1.21% 4.11% 3.80% 3.69% 3.93% 3.89% $7.80 $9.06 $9.37 $7.80 $6.29 65.87% 61.24% 61.27% 62.83% 66.35% We normally review our performance over the last three years. Last year, we added a fourth year to give readers an “apples to apples” comparison (2022 v. 2019), as we considered the Covid years (2020 and 2021) anomalies, with distortions like PPP income. Comparing 2023, 2022 and 2019 seems logical to us. As you remember, we want the first four categories to increase, the last one to decrease. Comparing 2023 to 2022, NIM increased, but ROAE, ROAA and EPS all declined, and the efficiency ratio increased. Comparing 2023 to 2019, we fared better, with all five categories improving. You will find more details on our financial performance in our Form 10-K. In October, we held SPARK2023, an in-person event designed to create an environment in which 400+ Park bankers could learn, connect, celebrate and laugh. Thanks to our creative, hardworking planning team and the complete engagement of all who attended, the event exceeded our highest hopes. 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 $3.7 million, $3.5 million, $2.9 million, $2.9 million, and $3.0 million for the years ended December 31, 2023, 2022, 2021, 2020 and 2019 respectively. Park National Corporation Annual Report ▶ 3 One of the highlights was a real-time poll, in which attendees answered this question: Think back on a moment that mattered to you… A moment that paved the way, sparked your passion and fueled your fire or gave you a sense of belonging and made you feel like you mattered at Park. How to grow loans People have long thought of us as “conservative” lenders. That is, we are told that we ask for more information, more collateral, more guarantors, etc. than other lenders. These sentiments usually grow in proportion to the availability of credit. However, when the economy slows or is in a funk, we rarely hear a peep about our conservative nature. Rather, customers and prospects tell us they value our P R E D I C TA B I L I T Y, C O N S I S T E N C Y A N D AVA I L A B I L I T Y (we answer our phones in good times and bad). In a matter of minutes, 100+ responses popped up on the screens at the front of the room and on everyone’s In the second half of 2023, our loans grew at an annualized rate of 7.4 percent. Many of these loans event app. We won’t repeat all the responses, but here were made to prospects on whom we’d been calling are a few to give you a sense of how our bankers feel for some time. For months — or years — they told us about Park: • "The first two weeks I was here (about two years ago), I realized I made the right choice in Park when I felt so welcomed by everyone in the bank, and that feeling has not wavered one bit." • "My department showing up when my mom passed away." • "Park has been with me through all sorts of adult life milestones. Marriage, children, college graduation, etc. I’ve always felt supported to grow, make mistakes and learn." • "Every time I see Park associates rally around a team member, customer or community member in a time of need or difficult situation." • "I think of the many moments (that) mentors, current and past, believed in me. Many saw things in me I didn’t see in myself. Their encouragement still drives me to this day." Reading all these comments several months after the fact, we are again touched by the depth of feeling behind each one. What makes Park special? Park bankers, who live and love to serve; who see beyond themselves to help others navigate life; who care deeply about colleagues, customers and communities. It is an honor to work alongside these caring professionals. 4 ◀ Park National Corporation Annual Report our proposals were “not competitive.” This shifted when the prospects’ then-current bank decided to reduce its exposure to their industry or exit it entirely. Voila! We became “competitive.” We have seen this phenomenon before, when economic clouds form and bankers tend to hunker down. We don’t “hunker down,” because it is precisely when customers feel pressure that they need us to be there for them — with capital, with advice, with an empathetic ear. The evolution of our branch network We regularly review how customers engage with us to consider how, when and where to modify our B R A N C H N E T W O R K . Our Data Science team further informs our thinking with in-depth analyses of demographic trends in our markets. Last year, the data and anecdotal evidence were clear. The great majority of our customers engage with us through some digital channel and this trend has been accelerating across the industry. Thus, in October 2023, we announced branch closures. We are not alone in this exercise. However, our approach to this project has been different, if not unique. In addition to required communications, we contacted every customer we could and talked through how their branch closure might affect them and what options were available We felt it when we acquired our first bank in 1985. We to keep their Park relationship. Unsurprisingly, we have felt it with every expansion and with every new found people appreciated the extra effort and valued plateau attained. But why haven’t we lost our soul…and the additional options supplied by their Park banker. why do we believe we won’t? Because our colleagues have built strong relationships over many years, a number of customers were more concerned about their Park banker than with any inconvenience to themselves. We assured them that we are sensitive to each banker's situation and would treat each with empathy. And we have. Who we are and will we change as we grow? As organizations grow, some fear they will lose their soul. That is, whatever animates the place will fade with more employees, more customers, more assets, more deposits, etc. We understand this possibility and the fear it may generate. We felt it when we opened our first office outside Licking County, Ohio in 1979. Our soul is our embedded in our “Why.” We exist to help everyone with whom we come in contact flourish. A simple statement, but one that has unified and energized our organization, regardless of size. We believe it will hold true in the future as well. Customer preferences may change, the tools we use to meet their needs may change, but our desire to help people flourish will not fade. 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. 95OFFICES 115 ATMS 1,799 AS SO C IAT ES 4STAT ES Park National Corporation Annual Report ▶ 5 Where are we going? For the last several years, we have hovered around $ 1 0 B I L L I O N I N A S S E T S . If you’re familiar with the great migration across the Serengeti to Masai Mara, you know that the wildebeest, zebra and gazelle herds must cross the Mara River. Tens of thousands of animals get to the river and stop. They know the river holds risks — deep waters, fast currents and predators (in the water and on the other side) who have waited an entire year for this migration. Eventually, driven by instinct and hunger, one animal jumps in, and is quickly joined by the entire herd. This is how we feel…holding at the precipice of $10 billion, but our instinct to grow and hunger to serve more has always been strong. We know that crossing $10 billion holds risks — increased regulatory scrutiny, financial impacts and more. But we’ve carefully planned our crossing, we’ve learned from others who’ve traveled this route and we’ve anticipated blind spots. We know the value of collectives like herds, packs and tribes and we will lean on each other. We have many people — colleagues, shareholders, community friends, regulators, attorneys, accountants, advisors — who want the best for us…and we for them. We intend to grow and will. We have stated before, and still believe, that growing earnings is best and we believe there are five ways for us to do this: 1. O R G A N I C G R O W T H Increase loans, deposits and assets under management 2 . P R U D E N T E X P E N S E C O N T R O L Contain non-interest expenses as we grow revenues 3 . D E N O V O E X PA N S I O N Open offices in promising locations 4 . O T H E R I N C O M E S T R E A M S Acquire or enter “boutique” businesses (like our Scope Aircraft and Specialty Finance groups) Before we know it, the $10 billion plateau on which we’ve been perched will be in the rearview mirror. Investment bankers tell us that on average, once an organization crosses $10 billion, it takes 3.5 years to reach $20 billion. We may or may not find this true for us. It has taken us 115 years to reach $10 billion. It will not take us 115 years to reach $20 billion. A national community bank Park has 402,623 customers across all 50 states in the U.S. including The Virgin Islands. Our C U S T O M E R B A S E extends across the Armed Forces Pacific and Armed Forces Europe also. Here’s where our customers are in the continental U.S.: 1-200 customers 201-500 customers 501-1,000 customers 1,000+ customers Not bad for a community bank. Everett D. Reese, our president from 1927 to 1956, taught us that the world is conveniently divided into two categories: Customers and prospects. As the U.S. population today is roughly 336 million, our current market share is, well, not much. We have a great desire to invite more people to consider Park as their bank. We have the digital tools to make geographic proximity moot and there are approximately 336 million prospects in the U.S. alone. If we ratchet our market share up by .1%, we will nearly double our customer base. So many prospects, so 5 . M E R G E R S & A C Q U I S I T I O N S little time. Identify partners who think beyond themselves in service to colleagues, customers and communities 6 ◀ Park National Corporation Annual Report Community support We used to highlight our community support in this letter. It is great fun to help our neighbors and communities prosper; we’ve done this for decades and will continue for as long as we’re around. But the B R E A D T H A N D D E P T H of our support has exceeded what makes sense to summarize in this The Park chord has three interwoven strands: 1. See others as fellow humans 2. Help them flourish as much as our talent and energy allow 3. Repeat Fred Rogers had another way of describing a three- strand chord (this quote resides on our conference letter. In addition to the community support summary table): on pages 14-17, we invite you to take a look at our 2023 Community Impact Report found online at parknationalcorp.com.1 The daily labyrinth and final thoughts Greek mythology tells us how Theseus successfully navigated Daedalus’ labyrinth with the help of Ariadne’s chord. Although some would say we live in mythical times, today we face no actual labyrinths. True, sometimes it feels like we are in a maze of There are three ways to ultimate success: The first way is to be kind. The second way is to be kind. The third way is to be kind. - F R E D R O G E R S , TV host and author We have great, kind people. We have solid, sustained earnings. We have strong and growing capital. We have an unwavering desire to serve and look forward to serving more. Thank you for your support and call/write/text if we can labyrinthian proportions — polarized political parties, help in any way. decibels replacing logic and reason, arbitrary rule- making, global conflicts that destroy/displace…there is much to absorb. How do we navigate all of this and still serve and grow? What is our “Ariadne’s chord?” 1The 2023 Community Impact Report and information within it is separate from and not incorporated by reference into this Annual Report. A few of our favorite moments from SPARK2023 Park National Corporation Annual Report ▶ 7 Associate Engagement AS SOC IAT E A PPR ECIATION E V E N T S To celebrate associates’ dedication and accomplishments, we hosted a variety of appreciation events this summer. It presented a great opportunity for colleagues to reconnect, relax and have fun outside of work. Our leaders got creative and invited teams and families to COSI, baseball games, a picnic, Top Golf, wineries and more. L AUNC H PAD COMP E TIT ION The Innovation Team invited associates to take part in an internal contest to share innovative ideas on how we can better serve our stakeholders. More than 300 ideas were submitted by 171 associates representing 87 percent of our Driven by purpose departments. The top five finalists have developed pilot plans to test their ideas and pitch them to leaders. Growing together Driven by purpose I N T E G R I T Y | S E R V I C E | C O M PA S S I O N I N T E G R I T Y | S E R V I C E | C O M PA S S I O N P R O F E S S I O N A L D E V E LO P M E N T | C A R E E R PAT H WAY S | M E N T O R S H I P P R O F E S S I O N A L D E V E LO P M E N T | C A R E E R PAT H W AY S | M E N T O R S H I P E MPLOYE E VALUE PROPOSITI ON Helping people is what we’re all about. We call it Serving More, and it’s what drives us. We genuinely care about helping our customers and communities, and we do the right thing, whether that means taking time to listen, seeing the world through someone else’s eyes or doing what’s best for them, not us. It all adds up to work that’s deeply meaningful and so much more than just a job. “At Park, banking is about more than money, and your job is more than the work you do. Experience a career that ignites your passion to serve, unlocks your potential to grow and fuels the life you want to build for yourself and those you love.” An employee value proposition (EVP) represents the value an organization has to offer associates and Imagine all the right ingredients coming together to help you grow and thrive – a culture that puts compassion before competition, a safe space to share your ideas, freedom to own your journey and genuine support from leaders who want to see you succeed. How far will your talent, ambition and passion take you? Helping people is what we’re all about. We call it Serving More, and it’s what drives us. We genuinely care about helping our customers and communities, and we do the right thing, whether that means taking time to listen, seeing the world through someone else’s eyes or doing what’s best for them, not us. It all adds up to work that’s deeply meaningful and so much more than just a job. is often used with recruiting, retention and associate engagement. The EVP and supporting key themes are being woven into recruiting efforts by our HR team. Driven by purpose Rewards for life Driven by purpose Driven by purpose Growing together Growing together Making an impact Making an impact Rewards for life Rewards for life Growing together I N T E G R I T Y | S E R V I C E | C O M PA S S I O N P E N S I O N | H E A LT H & W E L L B E I N G | E M P LOY E R M AT C H | PA I D T I M E O F F I N T E G R I T Y | S E R V I C E | C O M PA S S I O N P R O F E S S I O N A L D E V E LO P M E N T | C A R E E R PAT H WAY S | M E N T O R S H I P V O L U N T E E R I S M | P H I L A N T H R O P Y | L E A D E R S H I P P E N S I O N | H E A LT H & W E L L B E I N G | E M P LOY E R M AT C H | PA I D T I M E O F F P R O F E S S I O N A L D E V E LO P M E N T | C A R E E R PAT H WAY S | M E N T O R S H I P Helping people is what we’re all about. We call it Serving More, and it’s what drives us. We genuinely care about helping our customers and communities, and we do the right thing, whether that means taking time to listen, seeing the world through someone else’s eyes or doing what’s best for them, not us. It all adds up to work that’s deeply meaningful and so much more than just a job. There’s more to life than work, and finding the right balance can mean everything. Get flexibility because family comes first, peace of mind that your future is secure, and time off to focus on what matters most… all without sacrificing your big dreams and goals. Investing in you is just one way to show our gratitude. Helping people is what we’re all about. We call it Serving More, and it’s what drives us. We genuinely care about helping our customers and communities, and we do the right thing, whether that means taking time to listen, seeing the world through someone else’s eyes or doing what’s best for them, not us. It all adds up to work that’s deeply meaningful and so much more than just a job. When you bring together amazing people, they do amazing things. Serving on a Imagine all the right ingredients coming together to help you grow and thrive – a non-profit board or digging in to a hands-on volunteer project, we invite you to culture that puts compassion before competition, a safe space to share your roll up your sleeves, pitch in and give back in a way that fits you, because our ideas, freedom to own your journey and genuine support from leaders who want commitment to our community is more than words. to see you succeed. How far will your talent, ambition and passion take you? There’s more to life than work, and finding the right balance can mean everything. Imagine all the right ingredients coming together to help you grow and thrive – a Get flexibility because family comes first, peace of mind that your future is secure, culture that puts compassion before competition, a safe space to share your and time off to focus on what matters most… all without sacrificing your big dreams ideas, freedom to own your journey and genuine support from leaders who want and goals. Investing in you is just one way to show our gratitude. to see you succeed. How far will your talent, ambition and passion take you? 8 ◀ Park National Corporation Annual Report Rewards for life Rewards for life Making an impact Making an impact P E N S I O N | H E A LT H & W E L L B E I N G | E M P L OY E R M AT C H | PA I D T I M E O F F V O L U N T E E R I S M | P H I L A N T H R O P Y | L E A D E R S H I P P E N S I O N | H E A LT H & W E L L B E I N G | E M P L OY E R M AT C H | PA I D T I M E O F F There’s more to life than work, and finding the right balance can mean everything. V O L U N T E E R I S M | P H I L A N T H R O P Y | L E A D E R S H I P When you bring together amazing people, they do amazing things. Serving on a There’s more to life than work, and finding the right balance can mean everything. Get flexibility because family comes first, peace of mind that your future is secure, When you bring together amazing people, they do amazing things. Serving on a non-profit board or digging in to a hands-on volunteer project, we invite you to Get flexibility because family comes first, peace of mind that your future is secure, and time off to focus on what matters most… all without sacrificing your big dreams non-profit board or digging in to a hands-on volunteer project, we invite you to roll up your sleeves, pitch in and give back in a way that fits you, because our and time off to focus on what matters most… all without sacrificing your big dreams and goals. Investing in you is just one way to show our gratitude. roll up your sleeves, pitch in and give back in a way that fits you, because our commitment to our community is more than words. and goals. Investing in you is just one way to show our gratitude. commitment to our community is more than words. Growing together Imagine all the right ingredients coming together to help you grow and thrive – a culture that puts compassion before competition, a safe space to share your ideas, freedom to own your journey and genuine support from leaders who want to see you succeed. How far will your talent, ambition and passion take you? Making an impact V O L U N T E E R I S M | P H I L A N T H R O P Y | L E A D E R S H I P When you bring together amazing people, they do amazing things. Serving on a non-profit board or digging in to a hands-on volunteer project, we invite you to roll up your sleeves, pitch in and give back in a way that fits you, because our commitment to our community is more than words. Park National Corporation Annual Report ▶ 9 “The process of migrating our core banking systems brought out the best in Park associates. Collaborating with many colleagues and areas across the bank was an incredibly positive experience. It felt good knowing the complex behind-the-scenes work we did created little to no interruption for customers.” Barry Winters, Business Systems 10 ◀ Park National Corporation Annual Report Technical Capabilities CORE MIGR AT ION Park took an important step toward becoming a more flexible, nimble and scalable organization – all key components of our long-range business strategy. The bank's key core processing services are now hosted in a secure, remote network instead of housed in our own data center. This migration allows us to reduce risk, right-size our costs and eliminate investing in equipment that will need upgraded or may not be needed long-term as our business evolves. PARKDIRECT ParkDirect continues to surprise and delight customers. The service offers a direct digital connection to a dedicated personal banker. Bankers build relationships through the convenience of chat, and customers value the platform's blend of convenience and connection. “I really appreciate all you guys do, and this app is wonderful for me. I’m not always close to a Park National branch and this makes my life so much easier.” “I’m glad I’m able to message you guys instead of call. It’s such a neat feature your bank has.” “This app is the best thing any bank has ever done. You all are so helpful.” DEC ISIONLE ND E R IM PLE M E N TAT ION The Indirect and Consumer Operations teams launched a new loan operating system called DecisionLender. The enhancements accommodate our dealer partners’ desire to be paperless and pave the wave for online loan applications. The system fuels efficiency through automation and enhanced customizations and improves loan decisioning and funding for associates, customers and dealers. This system also enables us to offer our indirect lending solutions to customers and dealers in the Carolinas. Park National Corporation Annual Report ▶ 11 Financial Strength LOAN GROW TH Park’s total loans increased 4.7 percent during 2023. Leaders attribute the solid loan growth to our bankers’ unwavering commitment to providing financial solutions in all market conditions. The personal relationships our bankers build with customers and a substantial core deposit base are pivotal factors impacting our stable net interest margin. After another strong year, Park’s consumer loan portfolio is poised to cross $2 billion in 2024. Home lending portfolio loans grew 12.1 percent in a challenging market. STRE AMLINE D OV E RD R A F T P ROGR AM In light of a rapidly evolving landscape from competitive and regulatory perspectives, Park standardized and refined its overdraft program to better align with customer expectations. The enhancements provide an improved banking experience, mitigate regulatory risk as overdraft scrutiny evolves and reduce the fee burden for customers. NE W OFFICES E XPAN D RE ACH Park expanded its presence in Columbus (OH) by opening the Linden Home Lending Center inside St. Stephen’s Community House. With the new office comes new opportunities to meet customers, provide financial education and help people on their journey to home ownership. The Greenville (SC) Office moved to a new location within an office park, providing greater accessibility, reserved parking, a full-service banking center, drive-thru banking services and a drive-up ATM for added convenience. The team welcomed customers to the new location at a holiday open house. CONT INUOU S IM PROV E ME NT Mortgage lending underwent a process redesign resulting in fewer bottlenecks and reduced burden on associates. Lender time spent per loan application reduced from 300 minutes to 150 minutes, while time to process a loan reduced from 775 minutes to 695 minutes. These changes in end-to-end mortgage processing are expected to yield a savings of $1.5 million annually. 12 ◀ Park National Corporation Annual Report “It was a whole new learning curve when it came to stepping into the ownership role. It's been really great to have a partner that's been there to make sure we have all the right pieces in place, and help educate us and bring us along as first-time business owners.” Lauren Parker, Slide Nine Agency Park National Corporation Annual Report ▶ 13 Community Impact PROUD TO SE RVE YOU We believe the only way for a bank to truly give its customers the service they deserve is to be a part of their community. And when you belong to something as special as that, investing time and money in places just a few sidewalks away becomes second nature. From big cities to small towns, we are proud to serve our communities. Last year we volunteered more than 18,000 hours and donated nearly $5 million dollars to local charities and community organizations. Lending a hand to a neighbor and investing in the people and places around us is the right thing to do, and we do it gladly. YOU BE LONG HE RE Park's commitment to fostering a sense of belonging among its associates is integral to cultivating a workplace environment that promotes diversity, equity and inclusion. By actively prioritizing inclusivity through training like the bank’s Outward Mindset and Outward Inclusion programs, Park creates an environment where individuals from all backgrounds feel seen, accepted and valued. This sense of belonging goes beyond mere representation and is rooted in the company's dedication to understanding and embracing the unique perspectives, experiences and contributions of each associate. 14 ◀ Park National Corporation Annual Report Promoting learning at home and abroad Around the world, one of the biggest disadvantages underserved children face is the lack of technological access. We partnered with two organizations to get our old computers to those who need them. First, we worked with Greater Well-Being to send 86 computers to three high schools, a YMCA, a YWCA and some learning centers in Jamaica that needed the units for their students. Then we donated 301 outdated desktop computers to PCs for People, a national nonprofit social enterprise that works to get low-cost quality computers and internet access into the homes of individuals and families with low income. Its goal is to make technology available at affordable prices and advance digital inclusion. We've volunteered with and supported Make-A-Day Foundation since 2021. Every six weeks, the nonprofit organization hosts block party-styled events for the local homeless population. They provide guests with warm meals, medical services, haircuts, shaves, personal care items, limited legal resources and much more. Park National Corporation Annual Report ▶ 15 $4,985,412 COMM U N IT Y DONAT IO NS 18,037 VOLUNTEER HOURS 1,340 ORGANIZ ATIONS 16 ◀ Park National Corporation Annual Report FIRST-TIME HOMEB U YERS WASEK A & ANNA K . HOME LOAN G R ANT In 2023, we introduced our new home loan grant program as a way to encourage homeownership in all communities. This specialized loan program opens financial possibilities and helps bridge the minority homeownership gap in Columbus (OH). The program helps borrowers that are buying or improving a home in historically underserved neighborhoods. It includes a grant of up to $15,000 that can be used for a variety of expenses that may arise during the homebuying process. We look forward to offering similar grant programs to other communities in our footprint in 2024. HOME B UYE R E D UCATION In 2023, Park’s homebuyer education programs taught attendees how they can become homeowners themselves. Park community home lenders presented information about prequalification, how to manage, build and improve your credit, 100% financing options, the homebuying process and our $15,000 home loan grant program. Guests were invited to stay afterwards to talk with a lender or homebuying counselor. Hundreds of prospective homebuyers attended the events across the communities we serve. We were grateful to partner with numerous organizations to present valuable information to attendees. PROMOT ING HOME OWNE RSH IP We're advancing homeownership through key partnerships in the communities we serve. Park has focused on developing and deepening partnerships with many organizations that focus on advocacy, credit counseling, financial education, housing affordability, homeownership and foreclosure prevention. It all adds up to more hope and positive experiences for more of our neighbors. Park National Corporation Annual Report ▶ 17 Bank Leadership Todd Bogdan Chief Operations Officer Adrienne Brokaw Chief Auditor Brady Burt Chief Financial Officer Bryan Campolo Chief Credit Officer Tom Cummiskey Chief Trust and Investment Officer Malory Dcosta Chief Information Officer Mark Miller Corporate Services Director Matt Miller President Cheryl Snyder Chief Retail Lending Officer David Trautman Chair and CEO Laura Tussing Chief Banking 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 Aguila International Director since 2013 Frederic Bertley, Ph.D. President and CEO COSI Director since 2021 C. Daniel DeLawder Chair, Executive Committee Park National Corporation Director since 1994 F. W. Englefield IV President Englefield, Inc. Director since 2005 Jason N. Judd Executive Vice President and CFO Safelite Group, Inc. Director since 2019 Stephen J. Kambeitz Entrepreneur Director since 2010 Timothy S. McLain Principal Dark Horse CPAs Director since 2010 D. Byrd Miller III Retired William Barnet & Son, LLC Director since 2022 Matthew R. Miller President Park National Corporation Director since 2019 Robert E. O’Neill President Southgate Corporation Director since 2013 Mark R. Ramser President Ohio Cumberland Gas Company Park National Corporation Director since 2019 David L. Trautman Chair and CEO Director since 2005 Leon Zazworsky President Mid State Systems, Inc Director since 2003 Alicia Sweet Hupp retired from the board of directors on April 24, 2023. We are grateful for her leadership and expertise. 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 Vic Bailey III Vic Bailey Automotive 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. Norman Chapman Inman Mills T. Alexander Evins Parker Poe Adams & Bernstein, LLP George M. Groome Retired, 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 John S. Poole Retired, Carolina Alliance Bank William Allen Rogers II Ewing Capital Partners, LLC/Allen C. Ewing & Co. William Ronald Shaw Shaw Resources Cheryl L. Snyder Park National Bank L. Terrell Sovey Management Advisory Services, Inc. Laura Stille Fretwell Partners Mary Thomas CF Leads 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 Retired, 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 Stephen Arnall Capitala Group 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 Timothy Ignasher Park National Bank Christine Mackie Zippy Ice Dennis W. Moser The Moser Group Donald Philip Renaldo, M.D. Donald Automotive Group Sara C. White Mooresville Realty 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 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. Matthew D. Miller City of Ashland, Ohio Jeffrey S. Monica McDonald’s Mark R. Ramser Ohio Cumberland Gas Co. Kim M. Rose Critchfield, Critchfield & Johnston, Ltd. 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 Retired business owner John A. Brown Park National Bank Travis J. Faber Faber & Associates Jeffrey E. Hittle Hittle Buick GMC Douglas D. Hulme, DVM* Retired, Oakview Veterinary Hospital Alicia Sweet Hupp Sweet Manufacturing Company Timothy Johnston Retired Thomas P. Loftis* Midland Properties, Inc. John McKinnon Clark Schaffer Hackett & Co. Scott D. Michael Michael Farms W. Samuel Robinson Retired, Murray Wells Wendeln & Robinson, CPAs Chester L. Walthall* Walthall Holding Co. Inc. 20 ◀ Park National Corporation Annual Report *Retired as of 12/31/23 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 $1,192,395 CO MMUNIT Y DO NAT IONS 187 AS SOCIATES 11 C OM M U NIT IES 2,731 VOLU NTE ER HOU R S 11OFFIC 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 $327,757 C OM M U NIT Y DO NATION S 85 AS SO C IATES 7 C OM M UN ITIE S 1,239 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 Brian Elder Community Home Lending and Development Director Tina Taley Home Lending Eric Croft Retail Banking Luann Snyder Trust and Investments $1,620,646 C OM M U NIT Y DONATI ONS 199 AS SO CIATE S 13 C OM M UN ITIE S 4,179 VOLU NTE ER HOURS 17 O FFICES Park National Corporation Annual Report ▶ 23 Eastern Ohio Region Coshocton, 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 $374,238 C OM M U NIT Y DON AT IONS 107 AS SO CIATE S 7C OM M U NITIE S 2,575 VOLU NTE ER HOURS 12O 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 Chris Hiner 3 North Main Street Mansfield, OH 44902 419-524-3370 chris.hiner@ 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 $765,939 C OM M U NIT Y DON AT IONS 235 AS SO CIATE S 18 C OM M UN ITIE S 4,750 VOLU NTEER HO URS After 16 years of service, Regional President Bob Boss retired at the end of 2023. We wish him the very best retirement has to offer. 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 $630,521 C OM M U NIT Y DONATI ONS 182 AS SO CIATE S 18 C OM M UN ITIE S 2,563 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 2023) 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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