Park National Corporation (PRK) | Investment Case

1. Company Snapshot

1.a. Company Description

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas.The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services for individual customers.It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; consumer loans, such as automobile loans and leases; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans.

In addition, the company offers aircraft financing and asset management services.As of December 31, 2021, it operated 96 financial service offices and a network of 116 automated teller machines in 26 Ohio counties, 1 Kentucky county, 3 North Carolina counties, and 4 South Carolina counties.The company was founded in 1908 and is headquartered in Newark, Ohio.

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1.b. Last Insights on PRK

Park National Corporation's recent performance was driven by strong Q3 earnings, beating estimates with $2.87 per share, up from $2.25 a year ago. The company's acquisition of First Citizens Bancshares, Inc. for $317 million is expected to close in Q1 2026. A quarterly cash dividend of $1.07 per share and a special one-time dividend of $1.25 per share were declared. Institutional investors, such as Arbor Investment Advisors LLC, have shown confidence with recent share purchases.

1.c. Company Highlights

Last Price	166.58
Change Percentage	-4.89%
Open	174.56
Previous Close	175.15
Market Cap ( Millions)	3010
Volume	11234
Year High	179.48
Year Low	137.97
M A 50	163.98
M A 200	163.6

FCF Yield	4.53%
Dividend Yield	3.34%
ROE	13.70%
Debt / Equity	6.04%
Net Debt / EBIDTA	-13.65%
Price To Book	1.98
Price Earnings Ratio	14.87
Price To FCF	22.09
Price To sales	4.53
EV / EBITDA	12.96

2. Transcript Summary

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3. NewsRoom

Market Today: Blue Owl payout, GDP miss, oil and EV moves

Feb -20

Source: gurufocus.com

First Look: Amazon tops Walmart; WBD--Netflix saga; oil up

Feb -20

Source: gurufocus.com

Park National (PRK) Upgraded to Strong Buy: Here's What You Should Know

Feb -05

Source: zacks.com

Park National (NYSE:PRK) Trading Up 0.9% – What’s Next?

Jan -27

Source: defenseworld.net

Park National (PRK) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Jan -27

Source: zacks.com

Park National (PRK) Q4 Earnings and Revenues Surpass Estimates

Jan -26

Source: zacks.com

Arbor Investment Advisors LLC Purchases Shares of 4,092 Park National Co. $PRK

Jan -03

Source: defenseworld.net

KBRA Comments on Park National Corporation's Acquisition of First Citizens Bancshares, Inc.

Nov -04

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Park National Bank

Expected Growth: 3.0%

Park National Bank's 3.0% growth is driven by strategic expansion into adjacent markets, increased commercial lending, and a focus on digital banking platforms. Additionally, the bank's strong capital position and efficient cost structure enable investment in growth initiatives, while a favorable interest rate environment supports net interest income growth.

7. Detailed Products

Community Banking

Provides traditional banking services to individuals and businesses, including deposit accounts, loans, and other financial services.

Consumer Banking

Offers a range of consumer banking products and services, including credit cards, home equity loans, and personal loans.

Commercial Banking

Provides financial services to businesses, including cash management, commercial lending, and treasury management.

Mortgage Banking

Offers mortgage lending services to individuals and businesses, including residential and commercial mortgage loans.

Wealth Management

Provides investment and wealth management services to individuals and businesses, including investment advice, portfolio management, and retirement planning.

8. Park National Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Park National Corporation operates in the banking industry, where customers have various alternatives for their banking needs. However, the company's strong brand presence and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Park National Corporation's customers have limited bargaining power due to the company's diverse customer base and lack of concentration of customers.

Bargaining Power Of Suppliers

Park National Corporation has a diverse supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and capital requirements, making it difficult for new entrants to compete with established players like Park National Corporation.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Park National Corporation faces intense competition from other banks and financial institutions.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	31.22%
Debt Cost	3.95%
Equity Weight	68.78%
Equity Cost	7.43%
WACC	6.34%
Leverage	45.39%

11. Quality Control: Park National Corporation passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

First Merchants

A-Score: 6.3/10

Value: 7.5

Growth: 6.0

Quality: 6.9

Yield: 7.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

FS Bancorp

A-Score: 6.3/10

Value: 7.4

Growth: 7.4

Quality: 6.0

Yield: 6.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

Third Coast Bancshares

A-Score: 6.3/10

Value: 7.4

Growth: 9.2

Quality: 7.2

Yield: 0.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

Veritex Holdings

A-Score: 6.1/10

Value: 5.8

Growth: 6.4

Quality: 6.4

Yield: 6.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

CF Bankshares

A-Score: 5.8/10

Value: 8.2

Growth: 6.9

Quality: 6.5

Yield: 2.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

Park National

A-Score: 5.6/10

Value: 3.7

Growth: 5.4

Quality: 6.9

Yield: 7.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

9.69%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.34%

Park National Corporation - US7006581075

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on PRK

1.c. Company Highlights

Expensive

Better Quality

Stable Momentum

Earnings Beats

Revenues Beats

Strong Momentum

Average Yield

Revenues Miss

Average Quality

Fairly Valued

Average Growth

Medium Volatility

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Park National Bank

Expected Growth: 3.0%

7. Detailed Products

Community Banking

Consumer Banking

Commercial Banking

Mortgage Banking

Wealth Management

8. Park National Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Park National Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

166.58$

Current Price

166.58$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA