Park National Corporation reports 2020 financial results
Loan activity generated income growth and supported community outreach
NEWARK, Ohio – Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the fourth quarter and full year of 2020 (three and twelve months ended December 31, 2020). The board of directors increased Park’s quarterly cash dividend, declaring it as $1.03 per common share. The board also declared a special cash dividend of $0.20 per common share, payable on March 10, 2021 to common shareholders of record as of February 19, 2021.
Park’s net income for the fourth quarter of 2020 was $45.2 million, an 88.8 percent increase from $23.9 million for the fourth quarter of 2019. Fourth quarter 2020 net income per diluted common share was $2.75, compared to $1.45 in the fourth quarter of 2019. Park’s net income for the full year of 2020 was $127.9 million, a 24.6 percent increase from $102.7 million for the full year of 2019. Net income per diluted common share was $7.80 for 2020, compared to $6.29 for 2019.
“Our lending services throughout the year were a main driver in our overall performance. Our bankers mobilized to serve in new ways, delivering prompt advice and service to families and businesses who were struggling due to the pandemic or rushing to take advantage of opportunities,” said Park President Matthew Miller. “We’re proud of our lending teams’ outstanding response to the surge of home loan activity and demand for U.S. PPP loans; and we’re deeply grateful to all our associates who showed extraordinary dedication to caring for customers and each other every day in 2020.”
Park’s community-banking subsidiary, The Park National Bank, reported net income of $34.2 million for the fourth quarter of 2020, a 28.6 percent increase compared to $26.6 million for the same period of 2019. The bank reported net income of $123.7 million for the full year of 2020, compared to $113.6 million for the full year of 2019.
“Park National bankers’ reliability and flexibility were never more important than in 2020,” Park Chairman and Chief Executive Officer David Trautman said. “In a year filled with odd and often uncomfortable circumstances, we grew relationships with our customers and communities by responding to their needs in consistent, compassionate, and creative ways.”
In 2020, Park National Corporation:
- Donated $4 million dollars to local organizations like shelters, theaters, support agencies, youth teams, and clubs.
- Helped over 8,000 families purchase a new home or refinance their current one to put themselves in a better financial situation.
- Helped small businesses maintain their workforces with the preservation of over 65,000 jobs through the Paycheck Protection Program.
- Rapidly approved vehicle loans for 42,518 families who needed more space or more recreational time with the family.
- Guided local business owners in sustaining their retirement plans that support over 24,000 employees – including many individuals saving for the first time in 2020.
- Offered video chat sessions for senior citizens on topics like fraud awareness, online banking, and ways to stay socially connected from home.
- Donated $600,000 to school programs, supporting educators whose response during these challenging times was an inspiration.
- Paid over $3 million to bank employees regardless if they could be at work, and offered bonus pay to Park’s frontline employees.