NEWARK, Ohio, April 24, 2026 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the first quarter of 2026. Park's board of directors declared a quarterly cash dividend of $1.10 per common share, payable on June 10, 2026, to common shareholders of record as of May 15, 2026.
On February 1, 2026, Park successfully completed its previously announced merger transaction with First Citizens Bancshares, Inc. (“First Citizens”) through an all-stock transaction. Park's results for the first quarter of 2026 reflected the impact of merger-related expenses as well as an expanded income and expense base resulting from the transaction.
“Our strategy to combine solid financial performance with intentional growth through partnerships in high-opportunity markets is delivering positive results,” said Park CEO and President, Matthew R. Miller. “Our expansion into Tennessee positions us to deliver even greater value across our communities while continuing to provide the personalized, relationship-driven banking our customers expect. We’re energized by the opportunity to expand our impact while staying true to our community banking roots.”
Park’s net income for the first quarter of 2026 was $41.7 million, a 1.1 percent decrease from $42.2 million for the first quarter of 2025. The first quarter of 2026 included $15.5 million ($12.4 million after tax) in merger related expenses. First quarter 2026 net income per diluted common share was $2.39, compared to $2.60 for the first quarter of 2025.
Park’s total loans increased $1.62 billion, or 20.1 percent, during 2026. The increase to total loans included $1.58 billion in loans acquired through the First Citizens transaction. Park's total deposits increased $2.76 billion, or 33.4 percent, during 2026, with an increase of 31.8 percent including off balance sheet deposits. The increase in total deposits included $2.22 billion in deposits acquired through the First Citizens transaction. The combination of solid loan growth and steady deposits contributed to Park's success in 2026.
“Our performance is a direct result of the skill, dedication and empathy our colleagues bring to their work every day. Their commitment to serve customers and strengthen our communities defines our organization,” said Park Chairman, David L. Trautman. “We’re grateful to play a small role in the lives of those we serve.”
Headquartered in Newark, Ohio, Park National Corporation has $13.0 billion in total assets (as of March 31, 2026). Park's banking operations are conducted through its subsidiary, The Park National Bank. Other Park subsidiaries are Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), Park Investments, Inc. Park National Holdings, Inc., First Citizens Properties, Inc., First Citizens Risk Management, Inc., and SE Property Holdings, LLC.
Complete financial tables are listed below.
Category: Earnings
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Park cautions that any forward-looking statements contained in this news release or made by management of Park are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties, including those described in Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as updated by our filings with the SEC. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.
Risks and uncertainties that could cause actual results to differ include, without limitation: (1) the ability to execute our business plan successfully and manage strategic initiatives; (2) the impact of current and future economic and financial market conditions, including unemployment rates, inflation, interest rates, supply-demand imbalances, and geopolitical matters; (3) factors impacting the performance of our loan portfolio, including real estate values, financial health of borrowers, and loan concentrations; (4) the effects of monetary and fiscal policies, including interest rates, money supply, and inflation; (5) changes in federal, state, or local tax laws; (6) the impact of changes in governmental policy and regulatory requirements on our operations; (7) changes in consumer spending, borrowing, and saving habits; (8) changes in the performance and creditworthiness of customers, suppliers, and counterparties; (9) increased credit risk and higher credit losses due to loan concentrations; (10) volatility in mortgage banking income due to interest rates and demand; (11) adequacy of our internal controls and risk management programs; (12) competitive pressures among financial services organizations; (13) uncertainty regarding changes in banking regulations and other regulatory requirements; (14) our ability to meet heightened supervisory requirements and expectations; (15) the impact of changes in accounting policies and practices on our financial condition; (16) the reliability and accuracy of assumptions and estimates used in applying critical accounting estimates; (17) the potential for higher future credit losses due to changes in economic assumptions; (18) the ability to anticipate and respond to technological changes and our reliance on third-party vendors; (19) operational issues related to and capital spending necessitated by the implementation of information technology systems on which we are highly dependent; (20) the ability to secure confidential information and deliver products and services through computer systems and telecommunications networks; (21) the impact of security breaches or failures in operational systems; (22) the impact of geopolitical instability and trade policies on our operations including the imposition of tariffs and retaliatory tariffs; (23) the impact of changes in credit ratings of government debt and financial stability of sovereign governments; (24) the effect of stock market price fluctuations on our asset and wealth management businesses; (25) litigation and regulatory compliance exposure; (26) availability of earnings and excess capital for dividend declarations; (27) the impact of fraud, scams, and schemes on our business; (28) the impact of natural disasters, pandemics, and other emergencies on our operations; (29) potential deterioration of the economy due to financial, political, or other shocks; (30) impact of healthcare laws and potential changes on our costs and operations; (31) the ability to grow deposits and maintain adequate deposit levels, including by mitigating the effect of unexpected deposit outflows on our financial condition; (32) risks related to the completed acquisition of First Citizens, including the possibility that anticipated benefits are not realized as expected, difficulties integrating the two companies, and potential adverse reactions to customer, business, or employee relationships; and (33) other risk factors related to the banking industry.
Park does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement was made, or reflect the occurrence of unanticipated events, except to the extent required by law.
PARK NATIONAL CORPORATIONFinancial HighlightsAs of or for the three months ended March 31, 2026, December 31, 2025 and March 31, 20252026
2025
2025
Percent change 1Q '26 vs.(in thousands, except common share and per common share data and ratios)1st QTR 4th QTR 1st QTR 4Q '25 1Q '25INCOME STATEMENT: Net interest income$125,780 $112,926 $104,377 11.4% 20.5%Provision for credit losses 2,672 3,849 756 (30.6)% 253.4%Other income 33,728 31,375 25,746 7.5% 31.0%Other expense 105,159 87,777 78,164 19.8% 34.5%Income before income taxes$51,677 $52,675 $51,203 (1.9)% 0.9%Income taxes 9,990 10,036 9,046 (0.5)% 10.4%Net income$41,687 $42,639 $42,157 (2.2)% (1.1)% MARKET DATA: Earnings per common share - basic (a)$2.40 $2.65 $2.61 (9.4)% (8.0)%Earnings per common share - diluted (a) 2.39 2.63 2.60 (9.1)% (8.1)%Quarterly cash dividend declared per common share 1.10 1.07 1.07 2.8% 2.8%Special cash dividend declared per common share — 1.25 — N.M. N.M.Book value per common share at period end 93.93 84.14 79.00 11.6% 18.9%Market price per common share at period end 163.45 152.18 151.40 7.4% 8.0%Market capitalization at period end 2,957,806 2,446,790 2,451,370 20.9% 20.7% Weighted average common shares - basic (b) 17,381,922 16,076,308 16,159,342 8.1% 7.6%Weighted average common shares - diluted (b) 17,457,573 16,183,706 16,238,701 7.9% 7.5%Common shares outstanding at period end 18,096,089 16,078,262 16,191,347 12.6% 11.8% PERFORMANCE RATIOS: (annualized) Return on average assets (a)(b) 1.43% 1.68% 1.70% (14.9)% (15.9)%Return on average shareholders' equity (a)(b) 10.67% 12.61% 13.46% (15.4)% (20.7)%Yield on loans 6.36% 6.34% 6.26% 0.3% 1.6%Yield on investment securities 3.08% 2.84% 3.25% 8.5% (5.2)%Yield on money market instruments 3.95% 3.94% 4.46% 0.3% (11.4)%Yield on interest earning assets 5.90% 5.91% 5.85% (0.2)% 0.9%Cost of interest bearing deposits 1.62% 1.61% 1.76% 0.6% (8.0)%Cost of borrowings 2.08% 1.31% 3.94% 58.8% (47.2)%Cost of paying interest bearing liabilities 1.63% 1.61% 1.86% 1.2% (12.4)%Net interest margin (g) 4.80% 4.88% 4.62% (1.6)% 3.9%Efficiency ratio (g) 65.52% 60.54% 59.79% 8.2% 9.6% OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION: Tangible book value per common share (d)$77.21 $74.06 $68.94 4.3% 12.0%Average interest earning assets 10,708,496 9,230,035 9,210,385 16.0% 16.3%Pre-tax, pre-provision net income (j) 54,349 56,524 51,959 (3.8)% 4.6% Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section. PARK NATIONAL CORPORATIONFinancial Highlights (continued)As of or for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025
Percent change 1Q '26 vs.(in thousands, except ratios)March 31, 2026 December 31, 2025 March 31, 2025 4Q '25 1Q '25BALANCE SHEET: Investment securities$1,366,955 $802,142 $1,042,163 70.4% 31.2%Loans 9,667,260 8,051,242 7,883,735 20.1% 22.6%Allowance for credit losses 108,590 92,973 88,130 16.8% 23.2%Goodwill and other intangible assets 302,565 161,990 162,758 86.8% 85.9%Other real estate owned (OREO) 24,458 729 119 N.M. N.M.Total assets 12,983,967 9,805,013 9,886,612 32.4% 31.3%Total deposits 11,000,500 8,243,713 8,201,695 33.4% 34.1%Borrowings 150,176 81,711 270,757 83.8% (44.5)%Total shareholders' equity 1,699,759 1,352,793 1,279,042 25.6% 32.9%Total equity 1,701,814 1,352,793 1,279,042 25.8% 33.1%Tangible equity (d) 1,397,194 1,190,803 1,116,284 17.3% 25.2%Total nonperforming loans 83,147 69,253 63,148 20.1% 31.7%Total nonperforming assets 107,605 69,982 63,267 53.8% 70.1% ASSET QUALITY RATIOS: Loans as a % of period end total assets 74.46% 82.11% 79.74% (9.3)% (6.6)%Total nonperforming loans as a % of period end loans 0.86% 0.86% 0.80% —% 7.5%Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets 1.11% 0.87% 0.80% 27.6% 38.8%Allowance for credit losses as a % of period end loans 1.12% 1.15% 1.12% (2.6)% —%Net loan charge-offs$2,628 $2,634 $592 (0.2)% N.M.Annualized net loan charge-offs as a % of average loans (b) 0.12% 0.13% 0.03% (7.7)% N.M. CAPITAL & LIQUIDITY: Total shareholders' equity / Period end total assets 13.09% 13.80% 12.94% (5.1)% 1.2%Tangible equity (d) / Tangible assets (f) 11.02% 12.35% 11.48% (10.8)% (4.0)%Average shareholders' equity / Average assets (b) 13.39% 13.32% 12.64% 0.5% 5.9%Average shareholders' equity / Average loans (b) 17.44% 16.77% 16.22% 4.0% 7.5%Average loans / Average deposits (b) 90.91% 93.98% 93.56% (3.3)% (2.8)% Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.
March 31
(in thousands, except share and per share data) 2026
2025
Interest income: Interest and fees on loans $142,042 $120,648 Interest on debt securities: Taxable 5,844 7,130 Tax-exempt 2,226 1,269 Other interest income 4,665 3,153 Total interest income 154,777 132,200 Interest expense: Interest on deposits: Demand and savings deposits 20,849 18,436 Time deposits 7,532 6,770 Interest on borrowings 616 2,617 Total interest expense 28,997 27,823 Net interest income 125,780 104,377 Provision for credit losses 2,672 756 Net interest income after provision for credit losses 123,108 103,621 Other income 33,728 25,746 Other expense 105,159 78,164 Income before income taxes 51,677 51,203 Income taxes 9,990 9,046 Net income $41,687 $42,157 Per common share: Net income - basic $2.40 $2.61 Net income - diluted $2.39 $2.60 Weighted average common shares - basic 17,381,922 16,159,342 Weighted average common shares - diluted 17,457,573 16,238,701 Cash dividends declared: Quarterly dividend $1.10 $1.07
2025
Assets Cash and due from banks$240,473 $127,229 Money market instruments 478,664 287,016 Investment securities 1,154,360 1,069,620 Loans 9,089,684 7,833,234 Allowance for credit losses (105,045) (88,825)Loans, net 8,984,639 7,744,409 Bank premises and equipment, net 81,598 68,992 Goodwill and other intangible assets 247,015 162,938 Other real estate owned 14,377 918 Other assets 639,866 584,485 Total assets$11,840,992 $10,045,607 Liabilities and Equity Deposits: Noninterest bearing$2,887,059 $2,578,838 Interest bearing 7,111,423 5,793,915 Total deposits 9,998,482 8,372,753 Borrowings 120,071 269,254 Other liabilities 136,008 133,341 Total liabilities$10,254,561 $8,775,348 Equity: Preferred shares$— $— Common shares 676,544 464,046 Accumulated other comprehensive loss, net of taxes (10,755) (39,942)Retained earnings 1,086,582 997,399 Treasury shares (167,287) (151,244)Total shareholders' equity$1,585,084 $1,270,259 Non-controlling interest in consolidated subsidiary 1,347 — Total equity$1,586,431 $1,270,259 Total liabilities and equity$11,840,992 $10,045,607
Consolidated Statements of Income - Linked Quarters
2026
2025
2025
2025
2025
(in thousands, except per share data)1st QTR
4th QTR
3rd QTR
2nd QTR
1st QTR
Interest income: Interest and fees on loans$142,042 $127,443 $126,648 $125,543 $120,648 Interest on debt securities: Taxable 5,844 4,267 5,644 6,693 7,130 Tax-exempt 2,226 1,487 1,520 1,503 1,269 Other interest income 4,665 3,695 5,140 2,757 3,153 Total interest income 154,777 136,892 138,952 136,496 132,200 Interest expense: Interest on deposits: Demand and savings deposits 20,849 18,431 20,499 19,055 18,436 Time deposits 7,532 5,267 5,501 5,821 6,770 Interest on borrowings 616 268 1,935 2,629 2,617 Total interest expense 28,997 23,966 27,935 27,505 27,823 Net interest income 125,780 112,926 111,017 108,991 104,377 Provision for credit losses 2,672 3,849 4,030 2,853 756 Net interest income after provision for credit losses 123,108 109,077 106,987 106,138 103,621 Other income 33,728 31,375 30,574 32,186 25,746 Other expense 105,159 87,777 79,463 78,977 78,164 Income before income taxes 51,677 52,675 58,098 59,347 51,203 Income taxes 9,990 10,036 10,940 11,228 9,046 Net income$41,687 $42,639 $47,158 $48,119 $42,157 Per common share: Net income - basic$2.40 $2.65 $2.93 $2.98 $2.61 Net income - diluted$2.39 $2.63 $2.92 $2.97 $2.60
2025
2025
2025
2025
(in thousands)1st QTR
4th QTR 3rd QTR 2nd QTR
1st QTR Other income: Income from fiduciary activities$12,343 $11,839 $11,315 $11,622 $10,994 Service charges on deposit accounts 3,348 2,552 2,578 2,514 2,407 Other service income 3,686 4,099 3,716 3,731 2,936 Debit card fee income 6,973 6,493 6,604 6,607 6,089 Bank owned life insurance income 1,707 1,777 1,559 1,762 1,512 ATM fees 380 333 371 367 335 Gain (loss) on sale of debt securities, net 1,084 (2,250) — — — Gain (loss) on equity securities, net 799 3,595 (549) 2,480 (862)Other components of net periodic benefit income 2,492 2,344 2,344 2,344 2,344 Miscellaneous 916 593 2,636 759 (9)Total other income$33,728 $31,375 $30,574 $32,186 $25,746 Other expense: Salaries$45,577 $39,315 $38,644 $38,560 $36,216 Employee benefits 11,692 10,846 9,892 9,108 10,516 Occupancy expense 4,572 3,349 3,242 3,269 3,519 Furniture and equipment expense 2,517 2,007 2,219 2,234 2,301 Data processing fees 13,141 12,188 11,531 11,021 10,529 Professional fees and services 16,828 9,275 7,475 7,395 7,307 Marketing 1,556 1,744 1,507 1,295 1,528 Insurance 2,074 1,534 1,468 1,667 1,686 Communication 1,425 1,137 1,239 941 1,202 State tax expense 1,367 1,181 1,182 1,350 1,186 Amortization of intangible assets 1,279 247 248 273 274 Foundation contributions — 1,000 — — — Miscellaneous 3,131 3,954 816 1,864 1,900 Total other expense$105,159 $87,777 $79,463 $78,977 $78,164
2024
2023
2022
2021
Allowance for credit losses: Allowance for credit losses, beginning of period $92,973 $87,966 $83,745 $85,379 $83,197 $85,675 Cumulative change in accounting principle; adoption of ASU 2022-02 in 2023 and ASU 2016-13 in 2021 — — — 383 — 6,090 First Citizens acquisition - Day 1 ACL 15,573 — — — — — Charge-offs 4,440 16,624 18,334 10,863 9,133 5,093 Recoveries 1,812 10,143 8,012 5,942 6,758 8,441 Net charge-offs (recoveries) 2,628 6,481 10,322 4,921 2,375 (3,348)Provision for (recovery of) credit losses 2,672 11,488 14,543 2,904 4,557 (11,916)Allowance for credit losses, end of period $108,590 $92,973 $87,966 $83,745 $85,379 $83,197 General reserve trends: Allowance for credit losses, end of period $108,590 $92,973 $87,966 $83,745 $85,379 $83,197 Specific reserves on individually evaluated loans - certain accruing purchased credit deteriorated ("PCD") loans — — — — — — Specific reserves on individually evaluated loans - accrual — — — — — 42 Specific reserves on individually evaluated loans - nonaccrual 3,041 739 1,299 4,983 3,566 1,574 General reserves on collectively evaluated loans $105,549 $92,234 $86,667 $78,762 $81,813 $81,581 Total loans $9,667,260 $8,051,242 $7,817,128 $7,476,221 $7,141,891 $6,871,122 Individually evaluated - certain accruing PCD loans (PCI loans for years 2020 and prior) 1,943 1,990 2,174 2,835 4,653 7,149 Individually evaluated loans - accrual (k) 14,792 18,365 15,290 — 11,477 17,517 Individually evaluated loans - nonaccrual 60,208 46,924 53,149 45,215 66,864 56,985 Collectively evaluated loans $9,590,317 $7,983,963 $7,746,515 $7,428,171 $7,058,897 $6,789,471 Asset Quality Ratios: Net charge-offs (recoveries) as a % of average loans (annualized) 0.12% 0.08% 0.14% 0.07% 0.03% (0.05)%Allowance for credit losses as a % of period end loans 1.12% 1.15% 1.13% 1.12% 1.20% 1.21%General reserve as a % of collectively evaluated loans 1.10% 1.16% 1.12% 1.06% 1.16% 1.20% Nonperforming assets: Nonaccrual loans $80,548 $66,515 $68,178 $60,259 $79,696 $72,722 Accruing troubled debt restructurings (for years 2022 and prior) (k) N.A. N.A. N.A. N.A. 20,134 28,323 Loans past due 90 days or more 2,599 2,738 1,754 859 1,281 1,607 Total nonperforming loans $83,147 $69,253 $69,932 $61,118 $101,111 $102,652 Other real estate owned 24,458 729 938 983 1,354 775 Other nonperforming assets — — — — — 2,750 Total nonperforming assets $107,605 $69,982 $70,870 $62,101 $102,465 $106,177 Percentage of nonaccrual loans to period end loans 0.83% 0.83% 0.87% 0.81% 1.12% 1.06%Percentage of nonperforming loans to period end loans 0.86% 0.86% 0.89% 0.82% 1.42% 1.49%Percentage of nonperforming assets to period end loans 1.11% 0.87% 0.91% 0.83% 1.43% 1.55%Percentage of nonperforming assets to period end total assets 0.83% 0.71% 0.72% 0.63% 1.04% 1.11% Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.
Asset Quality Information (continued)
Year ended December 31,
(in thousands, except ratios) March 31, 2026
2025
2024
2023
2022
2021
New nonaccrual loan information: Nonaccrual loans, beginning of period $66,515 $68,178 $60,259 $79,696 $72,722 $117,368 Acquired nonaccrual loans 4,506 — — — — — New nonaccrual loans 23,215 87,482 65,535 48,280 64,918 38,478 Resolved nonaccrual loans 13,688 89,145 57,616 67,717 57,944 83,124 Nonaccrual loans, end of period $80,548 $66,515 $68,178 $60,259 $79,696 $72,722 Individually evaluated nonaccrual commercial loan portfolio information (period end):
Unpaid principal balance $64,890 $51,664 $58,158 $47,564 $68,639 $57,609 Prior charge-offs 4,682 4,740 5,009 2,349 1,775 624 Remaining principal balance 60,208 46,924 53,149 45,215 66,864 56,985 Specific reserves 3,041 739 1,299 4,983 3,566 1,574 Book value, after specific reserves $57,167 $46,185 $51,850 $40,232 $63,298 $55,411 Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.
Financial Reconciliations (continued)
(a) Reported measure uses net income
(b) Averages are for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, as appropriate
(c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period.
RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY:
THREE MONTHS ENDED
March 31, 2026
December 31, 2025
March 31, 2025
AVERAGE SHAREHOLDERS' EQUITY$1,585,084 $1,341,399 $1,270,259 Less: Average goodwill and other intangible assets 247,015 162,152 162,938 AVERAGE TANGIBLE EQUITY$1,338,069 $1,179,247 $1,107,321 (d) Tangible equity divided by common shares outstanding at period end. Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at the end of the period.
RECONCILIATION OF TOTAL SHAREHOLDERS' EQUITY TO TANGIBLE EQUITY:
March 31, 2026
December 31, 2025
March 31, 2025
TOTAL SHAREHOLDERS' EQUITY$1,699,759 $1,352,793 $1,279,042 Less: Goodwill and other intangible assets 302,565 161,990 162,758 TANGIBLE EQUITY$1,397,194 $1,190,803 $1,116,284 (e) Net income for each period divided by average tangible assets during the period. Average tangible assets equal average assets less average goodwill and other intangible assets, in each case during the applicable period.
RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS
THREE MONTHS ENDED
March 31, 2026
December 31, 2025
March 31, 2025
AVERAGE ASSETS$11,840,992 $10,069,460 $10,045,607 Less: Average goodwill and other intangible assets 247,015 162,152 162,938 AVERAGE TANGIBLE ASSETS$11,593,977 $9,907,308 $9,882,669 (f) Tangible equity divided by tangible assets. Tangible assets equal total assets less goodwill and other intangible assets, in each case at the end of the period.
RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:
March 31, 2026
December 31, 2025
March 31, 2025
TOTAL ASSETS$12,983,967 $9,805,013 $9,886,612 Less: Goodwill and other intangible assets 302,565 161,990 162,758 TANGIBLE ASSETS$12,681,402 $9,643,023 $9,723,854 (g) 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 reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period.
RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME
THREE MONTHS ENDED
March 31, 2026
December 31, 2025
March 31, 2025
Interest income$154,777 $136,892 $132,200 Fully taxable equivalent adjustment 985 687 607 Fully taxable equivalent interest income$155,762 $137,579 $132,807 Interest expense 28,997 23,966 27,823 Fully taxable equivalent net interest income$126,765 $113,613 $104,984 (h) Adjustments to net income for each period presented are detailed in the non-GAAP reconciliations of net interest income, provision for credit losses, other income, other expense and tax effect of adjustments to net income.
(i) The tax effect of adjustments to net income was calculated assuming a 21% corporate federal income tax rate.
(j) Pre-tax, pre-provision ("PTPP") net income is calculated as net income, plus income taxes, plus the provision for credit losses, in each case during the applicable period. PTPP net income is a common industry metric utilized in capital analysis and review. PTPP is used to assess the operating performance of Park while excluding the impact of the provision for credit losses.
March 31, 2026
December 31, 2025
March 31, 2025
Net income$41,687 $42,639 $42,157 Plus: Income taxes 9,990 10,036 9,046 Plus: Provision for credit losses 2,672 3,849 756 Pre-tax, pre-provision net income$54,349 $56,524 $51,959 (k) Effective January 1, 2023, Park adopted Accounting Standards Update ("ASU") 2022-02. Among other things, this ASU eliminated the concept of troubled debt restructurings ("TDRs"). As a result of the adoption of this ASU and elimination of the concept of TDRs, total nonperforming loans ("NPLs") and total nonperforming assets ("NPAs") each decreased by $20.1 million effective January 1, 2023. Additionally, as a result of the adoption of this ASU, accruing individually evaluated loans decreased by $11.5 million effective January 1, 2023.