Park National's Business Segments

Park National Corporation (“Park”) is a financial holding company subject to regulation under the Bank Holding Company Act of 1956, as amended (the “Bank Holding Company Act”). Park was incorporated under Ohio law in 1992. Park’s principal executive offices are located at 50 North Third Street, Newark, Ohio 43055, and its telephone number is (740) 349-8451. Park’s common shares, each without par value (the “Common Shares”), are listed on NYSE MKT LLC (“NYSE MKT”), under the symbol “PRK.”

Park National Bank is a national banking association with its main office in Newark, Ohio and financial service offices in Ashland, Athens, Butler, Champaign, Clark, Clermont, Coshocton, Crawford, Darke, Fairfield, Fayette, Franklin, Greene, Hamilton, Hocking, Holmes, Knox, Licking, Madison, Marion, Mercer, Miami, Morrow, Muskingum, Perry, Richland, Tuscarawas and Warren Counties in Ohio.

As of October 2023, Park National Corporation provides a diverse range of financial products and services, primarily through its banking subsidiaries, including Park National Bank and its various divisions. The corporation operates across multiple segments of the financial services industry, providing tailored solutions for both commercial and consumer clients. Here’s an extensive overview of the key segments, products, and services offered:

1. Commercial Loans

Park National Corporation’s commercial loan offerings are designed to support a wide variety of business needs. These loans are extended for a range of purposes:

- General Corporate Purposes: Funding for operational expenditures, investment in equipment, and working capital.
- Commercial Real Estate Financing: Loans for the acquisition, construction, or refinancing of industrial and commercial properties. The lending policy for these loans addresses specific risks associated with commercial real estate.
- Equipment Financing: Loans that help businesses acquire necessary machinery and equipment, ensuring that borrowers can maintain their operational efficiency.
- Inventory and Accounts Receivable Financing: Solutions aimed at improving cash flow by securing loans against the inventory held or accounts receivable due.
- Acquisition Financing: Funding to facilitate the purchase of other businesses or assets.
- Commercial Leasing: Offering leasing options for businesses that prefer to lease rather than purchase equipment or real estate.
- Consumer Financing for Businesses: Loans made specifically to consumer finance companies that facilitate further lending for individual consumers.

Loan Terms and Structure
- Repayment Terms: The term structure of each loan is contingent upon its purpose, with repayment schedules often aligned with the economic useful life of the underlying asset.
- Credit Evaluation: A rigorous credit approval process includes a thorough review of the borrower’s financial statements, tax returns, and credit reports. Continuous monitoring of borrower performance is conducted to mitigate default risk.

Commercial Real Estate Loans (CRE Loans)
- Lending Policy: CRE loans are secured by the property itself, with a maximum loan-to-value ratio of 85% based on the purchase price or the appraised value.
- Interest Rates: Generally offered at variable rates, reflecting market conditions.

Aircraft Financing

Scope Aircraft Finance, a division of Park National Corporation, specializes in providing financing solutions for the acquisition of aircraft. This service primarily caters to small businesses and entrepreneurs across the United States who utilize aircraft for business or recreational purposes.

- Loan Portfolio: Aircraft loans are typically structured in line with industry standards, and as of the end of 2023, the division had outstanding loans secured by aircraft, solidifying its presence in the niche market of aircraft financing.

Consumer Loans

The consumer lending segment is a substantial part of Park National Corporation’s overall portfolio. The company provides various consumer loan products, including:

- Automobile Loans and Leases: Financing options for individuals seeking to purchase or lease vehicles.
- Home Equity Lines of Credit (HELOCs): Offering homeowners access to credit based on their homes equity, allowing them to borrow against it for various needs.

Loan Approval Criteria
- Evaluation of Borrowers: Credit approvals are based on income stability, employment history, creditworthiness, and collateral sufficiency for secured loans.

Portfolio Management
- Performance Monitoring: The consumer loan portfolio is regularly reviewed, and loans that fall short of performance standards are charged off as necessary. Regulatory compliance is strictly maintained, with oversight by a dedicated compliance officer.

Commercial and Consumer Banking Services

Beyond loan products, Park National Corporation also offers a range of traditional banking services:

- Deposit Services: This includes checking and savings accounts, money market accounts, and certificates of deposit (CDs), designed to meet the needs of both individual and business customers.
- Treasury Management Solutions: Tailored financial services for businesses, including cash management, fraud protection tools, and payment services.
- Wealth Management: Providing investment management, trust services, and financial planning for both individuals and businesses, aimed at helping clients achieve their financial goals.

Additional Services

Park National Corporation extends various additional services that enhance the overall client experience, including:

- Insurance Services: Offering a broad range of insurance products, such as personal, business, and health insurance solutions via affiliated entities.
- Financial Advisory: Support and guidance in financial planning, retirement, and investment strategies through wealth management services.
- Online and Mobile Banking: Technology-enhanced banking providing clients with remote access to their accounts, simplifying transactions and account management.

In conclusion, Park National Corporation stands out in the banking and financial services sector with a comprehensive suite of commercial and consumer banking products, specialized financing options, and strategic advisory services, positioning itself as a robust partner for individuals and businesses alike in addressing their financial needs.