What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-02-24 compared with 2024-02-23 · 477 added, 301 removed, 2336 unchanged (25% of the section changed)

45 unchanged sentences

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Park National Corporation (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive income (loss), changes in shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements").

We have audited the accompanying consolidated balance sheets of Park National Corporation (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements").

We also have audited the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework:

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Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which they relate.

The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Allowance for Credit Losses

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$ 467,602 $ 399,795 $ 323,107

Interest and dividends on debt securities:

Interest and dividends on securities:

Taxable 41,718 52,786 36,047

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3,135 4,721 1,395

Interest on subordinated notes and long-term debt 9,383 8,833 8,887

Interest on subordinated notes 9,428 9,383 8,833

Total interest expense

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398,019 373,113 347,059

Provision for (recovery of) credit losses 2,904 4,557 ( 11,916 )

Net interest income after provision for (recovery of) credit losses 370,209 342,502 341,809

Provision for credit losses 14,543 2,904 4,557

Net interest income after provision for credit losses 383,476 370,209 342,502

Other income:

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1,840 2,178 2,273

(Loss) gain on the sale of OREO, net ( 3 ) 5,611 ( 4 )

Pension settlement gain 6,148 — —

Gain (loss) on the sale of OREO, net 42 ( 3 ) 5,611

OREO valuation markup 30 60 12,039

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Defined benefit pension plan:

Amortization of net actuarial loss (gain) and amortization of prior service cost (credit), net of income tax effect of $ 10 , $( 3 ) and $ 466 , for the years ended December 31, 2023, 2022, and 2021, respectively

38 ( 12 ) 1,754

Amortization of prior service cost (credit), net of income tax effect of $ 10 , $ 10 and $( 3 ), for the years ended December 31, 2024, 2023, and 2022, respectively

Unrealized net actuarial gain (loss) and prior service credit (cost), net of income tax effect of $ 5,285 , $ 2,215 and $( 233 ), for the years ended December 31, 2024, 2023, and 2022, respectively

19,881 8,334 ( 876 )

Gain recognition on partial settlement of vested benefits, net of income tax effect of $( 1,291 ) for the year ended December 31, 2024

( 4,857 ) — —

Change in funded status of defined benefit pension plan, net of income tax effect 15,062 8,372 ( 888 )

Debt securities available-for-sale:

Net loss realized on sale of debt securities AFS, net of income tax effect of $ 1,654 for the year ended December 31, 2023

Change in unrealized holding gain (loss) on debt securities AFS, net of income tax effect of $ 5,743 , $( 31,066 ) and $( 5,193 ), for the years ended December 31, 2023, 2022 and 2021, respectively

Net loss realized on sale of debt securities AFS, net of income tax effect of $ 111 and $ 1,654 for the years ended December 31, 2024 and 2023, respectively

Unrealized holding gain (loss) on debt securities AFS, net of income tax effect of $ 1,206 , $ 5,743 and $( 31,066 ), for the years ended December 31, 2024, 2023 and 2022, respectively

4,539 21,610 ( 116,867 )

1 unchanged sentence

Cash flow hedging derivatives:

Unrealized gain on cash flow hedging derivatives, net of income tax effect of $ 41 and $ 131 for the years ended December 31, 2022 and 2021, respectively

Unrealized gain on cash flow hedging derivatives, net of income tax effect of $ 41 for the year ended December 31, 2022

Reclassification adjustment for losses included in net income on cash flow hedging derivatives, net of income tax effect of $ 14 for the year ended December 31, 2022

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(In thousands, except share and per share data) Shares Outstanding Amount Shares Outstanding Amount

Balance, January 1, 2021, as previously presented — $ — 16,314,197 $ 460,687 $ 704,764 $ ( 130,766 ) $ 5,571

Cumulative effect of change in accounting principle for ASU 2016-13, net of income tax ( 7,956 )

Balance, January 1, 2021, as adjusted — $ — 16,314,197 $ 460,687 $ 696,808 $ ( 130,766 ) $ 5,571

Balance, January 1, 2022 — $ — 16,219,563 461,800 776,294 ( 142,490 ) 15,155

Net income 148,351

Other comprehensive income, net of income tax 9,584

Other comprehensive loss, net of income tax ( 117,549 )

Cash dividends, $ 4.66 per common share

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34,245 ( 5,273 ) ( 965 ) 3,477

Treasury shares repurchased ( 137,659 ) ( 16,048 )

Treasury shares reissued for director grants 9,789 326 994

Balance, December 31, 2022 — — 16,263,583 462,404 847,235 ( 138,019 ) ( 102,394 )

Cumulative effect of a change in accounting principle for ASU 2022-02, net of income tax ( 303 )

Balance January 1, 2023, as adjusted — $ — 16,263,583 462,404 846,932 ( 138,019 ) ( 102,394 )

Net income 126,734

Other comprehensive loss, net of income tax ( 117,549 )

Other comprehensive income, net of income tax 36,203

Cash dividends, $ 4.20 per common share

Cash payment for fractional shares in dividend reinvestment plan ( 14 ) ( 2 )

Share-based compensation expense 6,787

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38,842 ( 5,911 ) ( 947 ) 4,014

Treasury shares repurchased ( 199,000 ) ( 23,017 )

Treasury shares reissued for director grants 13,054 ( 126 ) 1,349

Balance, December 31, 2023 — $ — 16,116,479 $ 463,280 $ 903,877 $ ( 155,673 ) $ ( 66,191 )

Cumulative effect of a change in accounting principle for ASU 2022-02, net of income tax ( 303 )

Balance January 1, 2023, as adjusted — $ — 16,263,583 462,404 846,932 ( 138,019 ) ( 102,394 )

Net income 151,420

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35,161 ( 6,020 ) ( 729 ) 3,633

Treasury shares repurchased ( 199,000 ) ( 23,017 )

Treasury shares reissued for director grants 7,342 465 758

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Adjustments to reconcile net income to net cash provided by operating activities:

Provision for (recovery of) credit losses 2,904 4,557 ( 11,916 )

Provision for credit losses 14,543 2,904 4,557

Accretion of loan fees and costs, net ( 8,892 ) ( 8,759 ) ( 12,085 )

Net amortization (accretion) of purchase accounting adjustments 664 ( 334 ) ( 1,519 )

Depreciation of premises and equipment 12,192 14,015 13,819

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Share-based compensation expense 7,669 8,010 7,199

Pension settlement gain ( 6,148 ) — —

Loan originations to be sold in secondary market ( 115,906 ) ( 65,211 ) ( 173,880 )

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Gain on sale of loans in secondary market ( 2,011 ) ( 1,213 ) ( 4,243 )

Loss (gain) on the sale of OREO, net 3 ( 5,611 ) 4

(Gain) loss on the sale of OREO, net ( 42 ) 3 ( 5,611 )

OREO valuation markup ( 30 ) ( 60 ) ( 12,039 )

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Changes in assets and liabilities:

Increase in prepaid dealer premiums ( 43 ) ( 9,422 ) ( 2,415 )

Decrease (increase) in prepaid dealer premiums 1,513 ( 43 ) ( 9,422 )

Decrease (increase) in other assets 8,872 3,479 ( 3,021 )

Decrease in other liabilities ( 6,982 ) ( 4,814 ) ( 7,939 )

Increase (decrease) in other liabilities 1,067 ( 6,982 ) ( 4,814 )

Net cash provided by operating activities $ 178,848 $ 151,137 $ 136,642

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FHLB stock ( 9,225 ) ( 18,228 ) —

Net decrease in other investments 1,886 331 2,597

Net loan (originations) paydowns, portfolio loans ( 329,810 ) ( 271,753 ) 312,187

Net (increase) decrease in other investments ( 1,288 ) 1,886 331

Net loan originations, portfolio loans ( 341,500 ) ( 330,443 ) ( 273,526 )

Park National Corporation and Subsidiaries

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Proceeds from the sale of OREO 1,095 965 17,684

Life insurance death benefits 1,816 9,587 5,598

Bank owned life insurance death benefits 12,466 1,816 9,587

Purchases of bank owned life insurance ( 9,937 ) ( 10,779 ) ( 7,500 )

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Purchases of premises and equipment ( 9,183 ) ( 7,589 ) ( 7,937 )

Net cash provided by (used in) investing activities $ 64,157 $ ( 403,699 ) $ ( 412,141 )

Net cash (used in) provided by investing activities $ ( 19,148 ) $ 63,524 $ ( 405,472 )

Financing activities

Net (decrease) increase in deposits ( 386,901 ) ( 456,922 ) 605,168

Net decrease (increase) in off-balance sheet deposits 194,752 787,116 ( 272,952 )

Net increase (decrease) in short-term borrowings 100,840 ( 11,444 ) ( 103,444 )

Repayment of long-term debt — — ( 32,500 )

Net increase (decrease) in deposits 214,961 ( 386,901 ) ( 456,929 )

Net (increase) decrease in off-balance sheet deposits ( 114,001 ) 194,752 787,116

Net (decrease) increase in short-term borrowings ( 237,750 ) 100,840 ( 11,444 )

Value of common shares withheld to pay employee income taxes ( 3,116 ) ( 2,844 ) ( 2,761 )

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Net cash (used in) provided by financing activities $ ( 217,402 ) $ ( 186,121 ) $ 239,378

Increase (decrease) in cash and cash equivalents 28,540 ( 29,452 ) ( 151,294 )

(Decrease) increase in cash and cash equivalents ( 57,702 ) 28,540 ( 29,452 )

Cash and cash equivalents at beginning of year

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There were no compensating balance arrangements in existence at December 31, 2024 or 2023.

Investment Securities

Debt Securities

Debt securities are classified upon acquisition into one of three categories:

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Interest accrued but not received for a security placed on nonaccrual status is reversed against interest income.

ACL - HTM Debt Securities

Management measures expected credit losses on HTM debt securities on a collective basis by major security type.

The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts.

Park does not currently hold any HTM debt securities.

ACL - Debt Securities AFS

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If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security.

If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis.

If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit

loss, limited by the amount that the fair value is less than the amortized cost basis.

Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of applicable taxes.

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Accrued interest receivable on debt securities AFS totaled $ 6.9 million and $ 10.6 million at December 31, 2024 and 2023, respectively, and is excluded from the estimate of credit losses.

ACL - HTM Debt Securities

Management measures expected credit losses on HTM debt securities on a collective basis by major security type.

The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts.

Park does not currently hold any HTM debt securities.

Equity Securities

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The fair value of an interest rate lock is recorded at the time the commitment to fund a mortgage loan is executed and is adjusted for the expected exercise of a commitment before a loan is funded.

In order to hedge against a change in interest rates resulting from the Company's commitments to fund loans, the Company enters into forward commitments for the future delivery of mortgage loans.

In order to economically hedge against a change in interest rates resulting from the Company's commitments to fund loans, the Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into.

The fair value of Park's mortgage banking derivatives is estimated based on the change in mortgage interest rates from the date the interest on a loan is locked.

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The Company’s charge-off policy for consumer loans is dependent on the class of the loan.

Residential mortgage loans, HELOCs, and consumer loans secured by residential real estate are typically

charged down to the value of the collateral, less estimated selling costs, at 180 days past due.

The charge-off policy for other consumer loans, primarily installment loans, requires a monthly review of delinquent loans and a complete charge-off for any account that reaches 120 days past due.

Residential mortgage loans, HELOCs, and consumer loans secured by residential real estate are typically charged down to the value of the collateral, less estimated selling costs, at 180 days past due.

The charge-off policy for other consumer loans, primarily installment loans, requires a monthly review of delinquent loans and a complete charge-off for any

account that reaches 120 days past due.

In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful.

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Documentation and verification of income within defined time frames and not-to-exceed limits are bases for affirming ability to repay.

Risk of loss largely depends upon factors affecting the borrower's ability to repay as well as the general economic trends as they may adversely impact the value of the property.

Risk of loss largely depends upon factors affecting the borrower's ability to repay as well as general economic trends as they may adversely impact the value of the property.

These risks are mitigated by completing a comprehensive underwriting of the borrower and by requiring appraisals pursuant to government regulations.

The Company originates direct and indirect consumer loans, primarily automobile, recreational vehicle and watercraft loans, to customers in the Company's primary market areas.

Credit approval for consumer loans requires income

sufficient to repay principal and interest due, stable employment, an established credit record and sufficient collateral for secured loans.

Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default.

Credit approval for consumer loans requires income sufficient to repay principal and interest due, stable employment, an established credit record and sufficient collateral for secured loans.

Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate

mortgage loans, but generally carry higher risks of default.

Consumer loan collections are dependent on the borrower’s financial stability, and thus are more likely to be affected by adverse personal circumstances.

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Concentration of Credit Risk

Park's commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications in the 26 Ohio counties, four North Carolina counties, four South Carolina counties and one Kentucky county where PNB operates, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies.

The primary industries represented by these customers include real estate rental and leasing, finance and insurance, construction, accommodation and food services, health care and social assistance, other services, manufacturing, retail trade, agriculture, forestry, fishing and hunting, and professional, scientific, and technical services.

Park's commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications in the 24 Ohio counties, five North Carolina counties, four South Carolina counties and one Kentucky county where PNB operates, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies.

The primary industries represented by these customers include real estate rental and leasing;

construction;

finance and insurance;

accommodation and food services;

other services (except public administration);

health care and social assistance;

manufacturing;

retail trade;

agriculture, forestry, fishing and hunting;

and professional, scientific, and technical services.

The Company has purchased loans, some of which have shown evidence of credit deterioration since origination.

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Overdrafts Historical Loss Experience Not Applicable

Commercial real estate Discounted Cash Flow Ohio Unemployment

Commercial real estate Discounted Cash Flow Ohio Unemployment, Ohio GDP

Construction real estate:

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Consumer Discounted Cash Flow Ohio Unemployment, Ohio GDP

GFSC Discounted Cash Flow Ohio Unemployment, Ohio GDP

Check loans Historical Loss Experience Not Applicable

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When it is not possible to use Park's own LGDs, the LGD is derived using a method referred to as Frye Jacobs.

The Frye Jacobs method is a mathematical formula that traces the relationship between

LGD and PD over time and projects the LGD based on the level of PD forecasted.

In all cases, the Frye Jacobs method is utilized to calculate LGDs during the reversion period and long-term historical average.

The Frye Jacobs method is a mathematical formula that traces the relationship between LGD and PD over time and projects the LGD based on the level of PD forecasted.

In all cases, the Frye Jacobs method is

utilized to calculate LGDs during the reversion period and long-term historical average.

Prepayment and curtailment rates were calculated based on Park's own data utilizing a three-year average.

When the discounted cash flow method is used to determine the allowance for credit losses, management incorporates expected prepayments to determine the effective interest rate utilized to discount expected cash flow.

Park reviews various internal and external factors to consider the need for any qualitative adjustments to the quantitative model.

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Park has determined that any commercial loans which have been placed on nonaccrual status are to be individually evaluated.

Additionally, accruing collateral dependent commercial loans to borrowers experiencing financial difficulty are to be individually evaluated.

Individual analysis establishes an individual reserve for loans in scope.

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Operating costs after acquisition are expensed as incurred.

As of December 31, 2023 and 2022, Park had $ 1.1 million and $ 605,000 , respectively, of foreclosed assets included within “Other assets.”

As of December 31, 2024 and 2023, Park had $ 1.2 million and $ 1.1 million, respectively, of foreclosed assets included within “Other assets.”

Mortgage Servicing Rights

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Loss Contingencies

Park is routinely engaged in various litigation and other legal matters.

These include defending against claims of improper loan, deposit account, and other banking practices, as well as trust and investment, intellectual property, contract, and other legal matters, and Park has a number of unresolved lawsuits and open matters pending resolution.

In addition, Park is party to litigation involving the collection of delinquent accounts, challenges to security interests in collateral, foreclosure lawsuits, and similar matters which are part of, or incidental to, the ordinary course of business.

While the ultimate liability with respect to these matters and claims cannot be determined at this time, management believes that losses, damages, or liabilities, if any, and other amounts relating to pending matters are not likely to be material to Park's consolidated financial position or results of

We are routinely engaged in various litigation and other legal matters that are part of, or incidental to, our ordinary course of business and we have a number of unresolved lawsuits and open matters pending resolution.

While the ultimate liability with respect to these matters and claims cannot be determined at this time, we believe that losses, damages, or liabilities, if any, and other amounts relating to pending matters, individually or in the aggregate, are not likely to have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows.

Reserves are established for these various litigation and other legal matters, when appropriate under FASB ASC Topic 450, Contingencies, based in part upon the advice of legal counsel.

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The market price of Park’s common shares at the date of grant is used to estimate the fair value of restricted stock units and stock awards.

Compensation cost is recognized on a straight-line basis over the required service period, generally defined as the vesting period and is recorded in "Salaries" expense.

(See Note 20 - Share-Based Compensation.) The Company's accounting policy is to recognize forfeitures as they occur.

Compensation cost related to restricted stock units granted to employees is recognized on a straight-line basis over the required service period, generally defined as the vesting period and is recorded in "Salaries" expense.

(See Note 19 - Share-Based Compensation.) Compensation cost related to stock awards granted to directors is recognized on the date of grant and is recorded in "Professional fees and services" expense.

The Company's accounting policy is to recognize forfeitures as they occur.

Loan Commitments and Related Financial Instruments

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When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income.

When a cash flow hedge is discontinued but the hedged cash flows are still expected to occur, gains or losses that were accumulated in other comprehensive loss are amortized into net income over the same periods that the hedged transactions will affect earnings.

When a cash flow hedge is discontinued but the hedged cash flows are still expected to occur, gains or losses that were accumulated in other comprehensive income (loss) are amortized into net income over the same periods that the hedged transactions will affect earnings.

The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position.

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The Corporation is a financial holding company headquartered in Newark, Ohio.

While the chief decision makers monitor the operating results of its lines of business, operations are managed and financial performance is evaluated on a consolidated basis.

While the chief operating decision maker monitors the operating results of its lines of business, operations are managed and financial performance is evaluated on a consolidated basis.

Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

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The adoption of ASU 2022-02 impacted disclosures in Note 5 - Loans and Note 6 - Allowance for Credit Losses.

SEC Cybersecurity Disclosures:

In July 2023, the SEC voted to standardize disclosures about cybersecurity risk management, strategy, governance, and material cybersecurity incidents by public companies subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act").

The Current Report on Form 8-K has a new item, Item 1.05, and registrants are required to disclose under this Item 1.05 any cybersecurity incident that is deemed to be material and describe the material aspects of the incident's nature, scope, and timing, as well as its material impact, or reasonably likely material impact on a registrant, including its financial condition and results of operations.

The Form 8-K filing is generally due four business days after a registrant determines that the cybersecurity incident is material.

Also, SEC Regulation S-K has a new item, Item 106, which requires registrants to describe, on an annual basis, the processes for assessing, identifying, and managing material risks from cybersecurity threats as well as the material effects, or reasonably likely material effects, of risk from cybersecurity threats and previous cybersecurity incidents.

Item 106 also requires registrants to describe the board of directors' oversight of risks from cybersecurity threats and management's role and expertise in assessing and managing material risks from cybersecurity threats.

These disclosures are required in the annual report on Form 10-K.

Compliance with the material incident disclosure requirements in Item 1.05 of Form 8-K began on December 18, 2023 and the annual disclosures are to be provided beginning with annual reports for fiscal years ending on or after December 15, 2023.

Management adopted the SEC cybersecurity rules on December 18, 2023 and has included the new annual disclosures in this Annual Report on Form 10-K.

ASU 2023-07 - Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures:

In November 2023, FASB issued ASU 2023-07 - Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

ASU 2023-07 requires public entities to disclose information about their reportable segments' significant expenses on an interim and annual basis.

Public entities are required to disclose other segment items for each reportable segment and provide a description of its composition.

Significant expense categories are derived from expenses that are regularly reported to an entity's chief operating decision-makers and included in a segments' reported measures of profit or loss.

ASU 2023-07 also requires for an entity to disclose the title and position of the chief operating decision-maker and explain how the chief operating decision-maker uses the reported measures of profit or loss to assess segment performance.

ASU 2023-07 also requires interim disclosures of certain segment-related disclosures that previously were required only on an annual basis and clarifies that entities with a single reportable segment are subject to both new and existing segment reporting requirements under Topic 280.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

ASU 2023-07 requires entities to adopt the changes to the segment reporting guidance on a retrospective basis and early adoption is permitted.

The adoption of the provisions of ASU 2023-07 impacted segment disclosures in Note 28 - Segment Information.

Issued But Not Yet Effective Accounting Standards

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The adoption of the provisions of ASU 2023-06 is not expected to have a material impact on Park's consolidated financial statements.

ASU 2023-07 - Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures

In November 2023, FASB issued ASU 2023-07 -Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

ASU 2023-07 will require public entities to disclose information about their reportable segments' significant expenses on an interim and annual basis.

Public entities will be required to disclose other segment items for each reportable segment and provide a description of its composition.

Significant expense categories are derived from expenses that are regularly reported to an entity's chief operating decision-makers and included in a segments' reported measures of profit or loss.

ASU 2023-07 will also require for an entity to disclose the title and position of the chief operating decision-maker and explain how the chief operating decision-maker uses the reported measures of profit or loss to assess segment performance.

2023-07 also requires interim disclosures of certain segment-related disclosures that previously were required only on an annual basis and clarifies that entities with a single reportable segment are subject to both new and existing segment reporting requirements under Topic 280.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

ASU 2023-07 requires entities to adopt the changes to the segment reporting guidance on a retrospective basis and early adoption is permitted.

The adoption of the provisions of ASU 2023-07 is not expected to have an impact on Park's consolidated financial statements.

ASU 2023-09 - Income Taxes (Topic 740) Improvement to Income Tax Disclosures:

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The adoption of the provisions of ASU 2023-09 is not expected to have an impact on Park's consolidated financial statements, but will impact disclosures.

ASU 2024-02 - Codification Improvements - Amendments to Remove References to Concepts Statements:

In March 2024, FASB issued ASU 2024-02 - Codification Improvements - Amendments to Remove References to the Concepts Statements.

ASU 2024-02 contains amendments to the Codification that remove references to various Concepts Statements.

In most cases the references were extraneous and not required to understand or apply the guidance.

In other instances, the references were used in previous Statements to provide guidance on certain topical areas.

ASU 2024-02 is effective for public business entities for fiscal years beginning after December 15, 2024.

The adoption of ASU 2024-02 is not expected to have an impact on Park's consolidated financial statements.

ASU 2024-03 - Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

In November 2024, FASB issued ASU 2024-03 - Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40).

ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities in disclosures within the footnotes to the financial statements.

The disclosures will require a footnote disclosure about specific expenses to disaggregate, in a tabular presentation, each relevant expense caption on the income statement that includes any of the following natural expenses:

(1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) deprecation, depletion and amortization recognized as part of oil and gas producing activities and other types of depletion expenses.

The tabular disclosure would also include certain other expenses, as applicable.

ASU 2024-03 is effective for public business entities for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027.

Early adoption is permitted and public business entities are required to adopt ASU 2024-03 prospectively;

however, entities are permitted to apply the amendments retrospectively.

The adoption of the provisions of ASU 2024-03 is not expected to have an impact on Park's consolidated financial statements, but will impact disclosures.

Park National Corporation is a financial holding company headquartered in Newark, Ohio.

Through PNB, Park is engaged in a general commercial banking and trust business, primarily in Ohio, Kentucky, North Carolina, and South Carolina, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies.

Through PNB, Park is engaged in a general commercial banking and trust and wealth management business, primarily in Ohio, Kentucky, North Carolina, and South Carolina, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies.

PNB is headquartered in Newark, Ohio.

A wholly-owned subsidiary of Park, GFSC is a consumer finance company located in Central Ohio.

During 2019, Guardian Finance stopped seeking new loans.

PNB provides the following principal services:

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Debt Securities Available-for-Sale

Obligations of U.S.

Government sponsored entities $ 250 $ — $ 1 $ 249

Obligations of states and political subdivisions 203,438 88 16,643 $ 186,883

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Debt Securities Available-for-Sale

Obligations of U.S.

Government sponsored entities $ 39,000 $ — $ 1,787 $ 37,213

Obligations of states and political subdivisions $ 251,531 $ 1,173 $ 11,520 $ 241,184

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Debt Securities Available-for-Sale

Obligations of U.S.

Government sponsored entities $ 249 $ 1 $ — $ — $ 249 $ 1

Obligations of states and political subdivisions 34,256 528 137,471 16,115 171,727 16,643

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Debt Securities Available-for-Sale

Obligations of U.S.

Government sponsored entities $ 37,213 $ 1,787 $ — $ — $ 37,213 $ 1,787

Obligations of states and political subdivisions $ 46,685 $ 420 $ 103,993 $ 11,100 $ 150,678 $ 11,520

3 unchanged sentences

Total $ 56,215 $ 1,122 $ 1,150,640 $ 86,033 $ 1,206,855 $ 87,155

At December 31, 2023, Park’s debt security portfolio consisted of $ 1.3 billion of securities, $ 1.2 billion of which were in an unrealized loss position with unrealized losses of $ 87.2 million.

Of the $ 1.2 billion of securities in an unrealized loss position, $ 1.2 billion were in an unrealized loss position for 12 months or longer.

Of the $ 87.2 million in unrealized losses, an aggregate of $ 68.2 million were related to Park's "U.S.

At December 31, 2024, Park’s debt security portfolio consisted of $ 1.0 billion of securities, $ 786.5 million of which were in an unrealized loss position with unrealized losses of $ 80.1 million.

Of the $ 786.5 million of securities in an unrealized loss position, $ 700.5 million were in an unrealized loss position for 12 months or longer.

Of the $ 80.1 million in unrealized losses, an aggregate of $ 61.7 million were related to Park's "Obligations of U.S.

Government sponsored entities" and "U.S.

Government sponsored entities' asset-backed securities" portfolio.

For non-agency debt securities, Park verified that the current credit ratings remain above investment grade.

Quarterly, management reviews the credit profile of each non-agency debt security and assesses whether any impairment to the contractually obligated cash flow is likely to occur.

Based on these reviews, management has concluded that the underlying creditworthiness for each security remains sufficient to maintain required payment obligations and, therefore, unrealized losses have not been recognized into net income.

On a quarterly basis, management reviews the credit profile of each non-agency debt security and assesses whether any impairment to the contractually obligated cash flow is likely to occur.

Based on these reviews, management has concluded that the underlying creditworthiness for each security remains sufficient to maintain required payment obligations and that changes in value are largely the result of changes in the yield curve, therefore, unrealized losses have not been recognized into net income.

Management does not intend to sell, and it is not more likely than not that management would be required to sell, the securities prior to their anticipated recovery in respect of the unrealized losses.

6 unchanged sentences

Debt Securities Available-for-Sale

Obligations of U.S.Government sponsored entities

Due within one year $ 250 $ 249 2.88 %

Total $ 250 $ 249 2.88 %

Obligations of states and political subdivisions

Due within one year $ 250 $ 250 6.06 %

Due one through five years 1,490 1,490 5.06 %

5 unchanged sentences

Corporate debt securities

Due one through five years $ 2,832 $ 2,801 10.39 %

Due within one year $ 971 $ 979 9.67 %

Due five through ten years 19,782 18,104 4.10 %

5 unchanged sentences

Government and its agencies, in an amount greater than 10 % of shareholders’ equity.

During 2024, Park sold certain AFS debt securities with a book value of $ 42.3 million at a gross loss of $ 553,000 and sold certain AFS debt securities with a book value of $ 2.3 million for a gross gain of $ 27,000 .

During 2023, Park sold certain AFS debt securities with a book value of $ 291.0 million at a gross loss of $ 7.9 million.

There were no sales of AFS debt securities during 2022 and 2021.

There were no sales of AFS debt securities during 2022.

Other Investment Securities

14 unchanged sentences

(1) There have been no impairments or downward adjustments made to equity investments carried at modified cost.

There were no adjustments recorded during the year ended December 31, 2023 as a result of observable price changes.

Cumulatively, upward adjustments of $ 1.4 million have been recorded as a result of observable price changes.

An upward adjustment of $ 571,000 was recorded during the year ended December 31, 2024 as a result of observable price changes.

There were no adjustments recorded during the year ended December 31, 2023 as a result of observable price changes.

During the year ended December 31, 2024, Park purchased 92,245 shares of FHLB stock with a book value of $ 9.2 million and the FHLB repurchased 183,713 shares of FHLB stock with a book value of $ 18.4 million.

During the year ended December 31, 2023, Park purchased 182,289 shares of FHLB stock with a book value of $ 18.2 million.

During the year ended December 31, 2023, the FHLB repurchased 116,722 shares of FHLB stock with a book value of $ 11.7 million.

During the year ended December 31, 2022, the FHLB repurchased 22,160 shares of FHLB stock with a book value of $ 2.2 million.

and the FHLB repurchased 116,722 shares of FHLB stock with a book value of $ 11.7 million.

During the year ended December 31, 2022, the FHLB repurchased 22,160 shares of FHLB stock with a book value of $ 2.2 million.

No shares of FHLB stock were purchased in the years ended December 31, 2022 or 2021.

No shares of FHLB stock were purchased in the year ended December 31, 2022.

No shares of FRB stock were purchased or sold in any of the years ended December 31, 2024, 2023, or 2022.

For the years ended December 31, 2023, 2022 and 2021, $ 600,000 , $ 601,000 and $ 552,000 , respectively, of gains on equity investments carried at fair value were recorded within "Gain on equity securities, net" on the Consolidated Statements of Income.

For the years ended December 31, 2023, 2022 and 2021, $ 371,000 , $ 2.4 million and $ 4.5 million, respectively, of gains on equity investments carried at NAV were recorded within "Gain on equity securities, net" on the Consolidated Statements of Income.

For the years ended December 31, 2024, 2023 and 2022, $ 2.6 million, $ 600,000 and $ 601,000 , respectively, of gains on equity investments carried at fair value or modified cost were recorded within "Gain on equity securities, net" on the Consolidated Statements of Income.

For the years ended December 31, 2024, 2023 and 2022, $ 468,000 , $ 371,000 and $ 2.4 million, respectively, of gains on equity investments carried at NAV were recorded within "Gain on equity securities, net" on the Consolidated Statements of Income.

The composition of the loan portfolio at December 31, 2024 and December 31, 2023 was as follows:

23 unchanged sentences

(1) Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

In order to support customers, Park participated in the CARES Act Paycheck Protection Program ("PPP").

For its assistance in making and retaining these loans, Park received an aggregate of $ 33.1 million in fees from the SBA.

During the years ended December 31, 2023, December 31, 2022, and December 31, 2021, $ 41,000 , $ 3.0 million, and $ 16.3 million, respectively, of PPP fee income was recognized within loan interest income.

Loans are shown net of deferred origination fees, costs and unearned income of $ 20.4 million at December 31, 2024, and of $ 19.8 million at December 31, 2023, which represented a net deferred income position in both years.

At December 31, 2023 and December 31, 2022, loans included purchase accounting adjustments of $ 1.8 million and $ 2.5 million, respectively, which represented a net deferred income position at each date.

At December 31, 2024 and December 31, 2023, loans included purchase accounting adjustments of $ 669,000 and $ 1.8 million, respectively, which represented a net deferred income position at each date.

This fair market value purchase accounting adjustment is expected to be recognized into interest income on a level yield basis over the remaining expected life of the loans.

1 unchanged sentence

Credit Quality

Among other things, the adoption of ASU 2022-02 on January 1, 2023 eliminated the concept of TDRs.

After the adoption of ASU 2022-02 on January 1, 2023, nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.

Prior to the adoption of ASU 2022-02, nonperforming loans consisted of nonaccrual loans, accruing TDRs and loans past due 90 days or more and still accruing.

The following table presents the amortized cost of nonaccrual loans and loans past due 90 days or more and still accruing, by class of loan, at December 31, 2023:

Nonperforming loans consist of nonaccrual loans and loans past due 90 days or more and still accruing.

The following tables present the amortized cost of nonaccrual loans and loans past due 90 days or more and still accruing, by class of loan, at December 31, 2024 and December 31, 2023:

December 31, 2024

20 unchanged sentences

Total loans $ 68,178 $ 1,754 $ 69,932

The following table presents the amortized cost of nonaccrual loans, accruing TDRs, and loans past due 90 days or more and still accruing, by class of loan, at December 31, 2022:

December 31, 2023

(In thousands) Nonaccrual

Loans Accruing

TDRs Loans Past Due 90 Days or More and Accruing Total

Loans Loans Past Due 90 Days or More and Accruing Total

Nonperforming

26 unchanged sentences

Commercial 8 — —

Retail — 22 1

Residential real estate:

16 unchanged sentences

Commercial 504 — —

Retail — 1,254 19

Residential real estate:

8 unchanged sentences

Nonaccrual commercial loans are evaluated on an individual basis and are excluded from the collective evaluation.

Management’s general practice is to proactively charge down loans individually evaluated to the fair value of the underlying collateral.

Additionally, accruing collateral dependent commercial loans to borrowers experiencing financial difficulty are individually evaluated.

Management’s general practice is to proactively charge down nonaccrual loans individually evaluated to the fair value of the underlying collateral.

Nonaccrual consumer loans are collectively evaluated based on similar risk characteristics.

22 unchanged sentences

Mortgage 76 — — 76

HELOC — — — —

Leases — 73 — 73

Total loans $ 34,349 $ 9,964 $ 3,737 $ 48,050

Interest income on nonaccrual loans individually evaluated for impairment is recognized on a cash basis only when Park expects to receive the entire recorded investment in the loans.

Interest income on nonaccrual loans is recognized on a cash basis only when Park expects to receive the entire recorded investment in the loans.

The following table presents interest income recognized on nonaccrual loans for the years ended December 31, 2024, 2023 and 2022:

43 unchanged sentences

Total loans $ 26,651 $ 25,797 $ 52,448 $ 7,764,680 $ 7,817,128

(1) Includes an aggregate of $ 859,000 of loans past due 90 days or more and accruing.

(1) Includes an aggregate of $ 1.8 million of loans past due 90 days or more and accruing.

The remaining loans were past due nonaccrual loans.

25 unchanged sentences

Total loans $ 22,686 $ 22,162 $ 44,848 $ 7,431,373 $ 7,476,221

(1) Includes an aggregate of $ 1.3 million of loans past due 90 days or more and accruing.

(1) Includes an aggregate of $ 859,000 of loans past due 90 days or more and accruing.

The remaining loans were past due nonaccrual loans.

11 unchanged sentences

A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss.

Commercial loans that are pass-rated (graded an 1 through a 4) are considered to be of acceptable credit risk.

Commercial loans that are pass-rated (graded a 1 through a 4) are considered to be of acceptable credit risk.

Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher PD is applied to these loans.

4 unchanged sentences

Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.

They are characterized by the distinct possibility that Park will sustain some loss if the deficiencies are not corrected.

They are characterized by the distinct possibility that Park will sustain some loss if the weaknesses are not corrected.

Commercial loans graded a 7 (doubtful) are shown as nonaccrual and Park generally charges these loans down to their fair value by taking a partial charge-off or recording an individual reserve.

4 unchanged sentences

Based on the most recent analysis performed, the risk category of loans by class of loans as of December 31, 2024 and December 31, 2023 are detailed in the tables below.

Also included in the table detailing balances at December 31, 2023 are gross charge offs for the year ended December 31, 2023.

Also included in the tables detailing balances at December 31, 2024 and December 31, 2023 are gross charge offs for the years ended December 31, 2024 and December 31, 2023.

December 31, 2024 Term Loans Amortized Cost Basis by Origination Year

61 unchanged sentences

Total $ 205,280 $ 151,829 $ 120,507 $ 96,527 $ 38,696 $ 54,246 $ 624,940 $ 1,292,025

Current period gross charge-offs $ — $ 13 $ 73 $ — $ 5 $ 52 $ 19 $ 162

Commercial, financial and agricultural:

4 unchanged sentences

Total $ — $ — $ 925 $ 1,191 $ — $ — $ — $ 2,116

December 31, 2022 Term Loans Amortized Cost Basis by Origination Year

(In thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total

Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

Commercial real estate (1)

4 unchanged sentences

Total $ 283,731 $ 326,636 $ 341,598 $ 328,770 $ 208,146 $ 368,256 $ 18,856 $ 1,875,993

Current period gross charge-offs $ 224 $ — $ — $ — $ — $ 530 $ — $ 754

Construction real estate:

4 unchanged sentences

Total $ 90,114 $ 78,224 $ 7,543 $ 18,195 $ 1,090 $ 2,718 $ 11,342 $ 209,226

Current period gross charge-offs $ 546 $ — $ — $ — $ — $ — $ — $ 546

Residential Real Estate:

4 unchanged sentences

Total $ 128,784 $ 104,901 $ 106,007 $ 120,598 $ 50,727 $ 74,668 $ 23,725 $ 609,410

Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

December 31, 2023 Term Loans Amortized Cost Basis by Origination Year

(In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total

Pass $ 11,440 $ 4,404 $ 2,197 $ 1,941 $ 356 $ 623 $ — $ 20,961

3 unchanged sentences

Total $ 12,171 $ 5,968 $ 2,588 $ 2,238 $ 433 $ 631 $ — $ 24,029

Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

Total Commercial Loans

4 unchanged sentences

Total $ 720,080 $ 667,558 $ 579,168 $ 567,519 $ 299,092 $ 500,519 $ 678,863 $ 4,012,799

Current period gross charge-offs $ 770 $ 13 $ 73 $ — $ 5 $ 582 $ 19 $ 1,462

(1) Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that are not broken out by class.

1 unchanged sentence

For residential and consumer loan classes, Park also evaluates credit quality based on the aging status of the loan, which was previously presented, and by performing status.

The following tables present the amortized cost in residential and consumer loans based on performing status.

Also included in the table detailing loan balances at December 31, 2023 are gross charge offs for the year ended December 31, 2023.

After the adoption of ASU 2022-02 on January 1, 2023, nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.

Prior to the adoption of ASU 2022-02, nonperforming loans consisted of nonaccrual loans, accruing TDRs and loans past due 90 days or more and still accruing.

The following tables present the amortized cost in residential and consumer loans based on performing status and gross charge-offs for the years ended December 31, 2024 and December 31, 2023.

Nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.

December 31, 2024 Term Loans Amortized Cost Basis by Origination Year

15 unchanged sentences

Current period gross charge-offs $ — $ — $ — $ — $ — $ 22 $ — $ 22

December 31, 2024 Term Loans Amortized Cost Basis by Origination Year

(In thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total

Residential Real Estate:

28 unchanged sentences

Total $ 1,499 $ — $ — $ — $ — $ — $ — $ 1,499

Current period gross charge-offs $ 1,064 $ — $ — $ — $ — $ — $ — $ 1,064

Construction Real Estate:

2 unchanged sentences

Total $ 52,904 $ 24,219 $ 7,709 $ 4,277 $ 3,604 $ 2,891 $ 269 $ 95,873

Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

December 31, 2023 Term Loans Amortized Cost Basis by Origination Year

(In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total

Residential Real Estate:

2 unchanged sentences

Total $ 209,512 $ 260,220 $ 219,589 $ 177,924 $ 81,208 $ 291,408 $ — $ 1,239,861

Current period gross charge-offs $ — $ — $ — $ — $ — $ 35 $ — $ 35

Residential Real Estate:

2 unchanged sentences

Total $ 99 $ 205 $ 379 $ 98 $ 253 $ 2,441 $ 170,874 $ 174,349

Current period gross charge-offs $ — $ — $ — $ — $ — $ 9 $ — $ 9

Residential Real Estate:

2 unchanged sentences

Total $ 2,225 $ 162 $ — $ 3 $ 144 $ 3,370 $ — $ 5,904

Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

Performing $ 627,985 $ 613,019 $ 319,161 $ 214,714 $ 81,446 $ 65,955 $ 18,605 $ 1,940,885

1 unchanged sentence

Total $ 628,380 $ 613,910 $ 319,815 $ 215,149 $ 81,662 $ 66,344 $ 18,609 $ 1,943,869

Current period gross charge-offs $ 560 $ 3,517 $ 2,371 $ 763 $ 545 $ 480 $ 6 $ 8,242

Performing $ — $ — $ — $ — $ — $ — $ 2,067 $ 2,067

1 unchanged sentence

Total $ — $ — $ — $ — $ — $ — $ 2,067 $ 2,067

Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ 51 $ 51

Total Consumer Loans

3 unchanged sentences

Total $ 894,619 $ 898,716 $ 547,492 $ 397,451 $ 166,871 $ 366,454 $ 191,819 $ 3,463,422

Current period gross charge-offs $ 1,624 $ 3,517 $ 2,371 $ 763 $ 545 $ 524 $ 57 $ 9,401

Loans and Leases Acquired with Deteriorated Credit Quality

2 unchanged sentences

The carrying amount of accruing loans acquired with deteriorated credit quality at December 31, 2024 and December 31, 2023 was $ 2.2 million and $ 2.8 million, respectively.

The carrying amount of nonaccrual loans acquired with deteriorated credit quality was $ 534,000 at December 31, 2023.

There were no nonaccrual loans acquired with deteriorated quality at December 31, 2022.

The carrying amount of nonaccrual loans acquired with deteriorated credit quality was $ 551,000 and $ 534,000 at December 31, 2024 and December 31, 2023, respectively.

Modifications to Borrowers Experiencing Financial Difficulty

12 unchanged sentences

When principal forgiveness is provided, the amount of forgiveness is charged off against the allowance for credit losses.

The following table presents the amortized cost basis of loans at December 31, 2023 that were both experiencing financial difficulty and modified during the year ended December 31, 2023 by class of and by type of modification.

The following tables present the amortized cost basis of loans at December 31, 2024 and 2023 that were both experiencing financial difficulty and modified during the years ended December 31, 2024 and 2023 by class of and by type of modification.

The percentage of the amortized cost basis of loans that were modified to borrowers in financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below.

18 unchanged sentences

Total $ — $ 214 $ 26,466 $ 1,593 $ 1,346 $ — $ 29,619 0.38 %

Year ended December 31, 2023

(Dollars in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Interest Rate Reduction Other Total Percent of Total Class of Financing Receivable

Commercial, financial and agricultural:

Commercial, financial and agricultural $ — $ — $ 11,866 $ 371 $ 363 $ 9 $ 12,609 0.98 %

PPP loans — — — — — — — — %

Overdrafts — — — — — — — — %

Commercial real estate — — 2,458 — — — 2,458 0.13 %

Construction real estate:

Commercial — — 831 — — — 831 0.40 %

Retail — — — — — — — — %

Residential real estate:

Commercial — — 10 — 144 — 154 0.03 %

Mortgage — — — — 428 — 428 0.03 %

HELOC — — — — — — — — %

Installment — — 448 — 299 — 747 12.65 %

Consumer — — — 32 — — 32 — %

Check loans — — — — — — — — %

Leases — — — — — — — — %

Total $ — $ — $ 15,613 $ 403 $ 1,234 $ 9 $ 17,259 0.23 %

Park has committed to lend additional amounts totaling $ 7.7 million to the borrowers included in the previous table as of December 31, 2024.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the year ended December 31, 2023:

The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the years ended December 31, 2024 and 2023:

Year ended December 31, 2024

(Dollars in thousands) Weighted Average Interest Rate Reduction Weighted Average Term Extension (years) Weighted Average Payment Delay (years)

Commercial, financial and agricultural:

Commercial, financial and agricultural ( 2.00 ) % 0.8 0.4

PPP loans — % 0.0 0.0

Overdrafts — % 0.0 0.0

Commercial real estate ( 1.80 ) % 3.9 0.4

Construction real estate:

Commercial — % 0.4 0.0

Retail — % 0.0 0.0

Residential real estate:

Commercial ( 0.77 ) % 3.1 0.0

Mortgage ( 2.30 ) % 3.3 0.0

HELOC — % 0.0 0.0

Installment ( 1.28 ) % 9.1 0.0

Consumer ( 4.09 ) % 0.0 0.0

Check loans — % 0.0 0.0

Leases — % 0.0 0.0

Total ( 1.65 ) % 1.8 0.4

Year ended December 31, 2023

(Dollars in thousands) Weighted Average Interest Rate Reduction Weighted Average Term Extension (years)

17 unchanged sentences

Park closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of Park's modification efforts.

The following table presents the performance of such loans that have been modified in the last 12 months:

The following tables present the performance of such loans that have been modified in the last 12 months for the years ended December 31, 2024 and 2023:

Year ended December 31, 2024

17 unchanged sentences

Total loans $ 186 $ — $ 4,695 $ 4,881

The following table presents the amortized cost basis of loans that had a payment default during the year ended December 31, 2023 and were modified in the year prior to that default to borrowers experiencing financial difficulty.

Year ended December 31, 2023

(In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due

Commercial, financial and agricultural:

Commercial, financial and agricultural $ — $ — $ — $ —

PPP loans — — — —

Overdrafts — — — —

Commercial real estate 219 — — 219

Construction real estate:

Commercial — 205 — 205

Retail — — — —

Residential real estate:

Commercial — — — —

Mortgage — — — —

HELOC — — — —

Installment 20 — — 20

Consumer — — — —

Check loans — — — —

Leases — — — —

Total loans $ 239 $ 205 $ — $ 444

The following tables present the amortized cost basis of loans that had a payment default during the years ended December 31, 2024 and 2023 and were modified in the year prior to that default to borrowers experiencing financial difficulty.

For this table, a loan is considered to be in default when it becomes 30 days contractually past due under the modified terms:

Year ended December 31, 2024

(In thousands) Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Interest Rate Reduction

Commercial, financial and agricultural:

Commercial, financial and agricultural $ 54 $ 6,756 $ 115 $ —

PPP loans — — — —

Overdrafts — — — —

Commercial real estate — — — —

Construction real estate:

Commercial — — — —

Retail — — — —

Residential real estate:

Commercial — — — —

Mortgage — 47 84 71

HELOC — — — —

Installment — — — —

Consumer — — — —

Check loans — — — —

Leases — — — —

Total loans $ 54 $ 6,803 $ 199 $ 71

Year ended December 31, 2023

(In thousands) Term Extension Interest Rate Reduction Combination Term Extension and Interest Rate Reduction Other

22 unchanged sentences

Of this total exposure, approximately $ 25.1 million and $ 28.0 million was outstanding at December 31, 2024 and 2023, respectively, with the remaining balance representing available credit.

During 2023, new loans and advances on existing loans were made to these executive officers, directors and related entities of directors totaling $ 0.4 million and $ 3.8 million, respectively.

During 2024, there were no new loans and advances on existing loans made to these executive officers, directors and related entities of directors totaled $ 783,000 .

These extensions of credit were offset by aggregate principal payments of $ 3.7 million.

14 unchanged sentences

Park updated the LDA in the fourth quarter of 2024.

Per review of the correlation of data and subsequent results, management refined the peer group in the LDA and maintained the exclusion of periods impacted by COVID-19.

Management reviewed and considered the impact of the inclusion of periods impacted by COVID-19 as part of the LDA update, but the correlation of the inclusion of COVID-19 periods was lower.

During the COVID pandemic, macroeconomic indicators showed significant deterioration, however, Park, along with most financial institutions, observed little to no meaningful increase in default activity.

This can be attributed to external intervention in the form of deferral programs and government stimulus which is unlikely to reoccur in future downturns.

For these reasons, management has excluded data from 2020-2022 in the LDA by using indicator variables during this time period.

• Probability of default – PD is the probability that an asset will be in default within a given time frame.

12 unchanged sentences

The scenario weighting is evaluated by management on a quarterly basis.

◦ A s of December 31, 2022, the "most likely" scenario forecasted Ohio unemployment between 4.14% and 4.36% during the next four quarters.

◦ As of December 31, 2023, the "most likely" scenario forecasted Ohio unemployment between 4.05% and 4.66% during the next four quarters.

In determining the appropriate weighting of scenarios at December 31, 2023, management considered the range of forecasted unemployment as well as a number of economic indicators.

The continued high levels of inflation, historically low consumer confidence, rising interest rates, geopolitical conflict (including the conflict between Russia and Ukraine), and workforce and supply chain challenges continued to cause uncertainty to the overall economic environment.

The continued elevated levels of inflation, volatile levels of consumer confidence, continued elevated interest rates, financial system stress and geopolitical conflict (including the conflicts between Russia and Ukraine and between Israel and Hamas) and stress in the commercial real estate sector, continued to cause uncertainty as to the overall economic environment.

Considering these factors, management determined it was appropriate to maintain the existing weighting, and weigh the "most likely" scenario 50% and the "moderate recession" scenario 50% at December 31, 2023.

1 unchanged sentence

In determining the appropriate weighting of scenarios at December 31, 2024, management considered the range of forecasted unemployment as well as a number of economic indicators.

While some economic indications are showing improvement and stabilization, volatile levels of consumer confidence, higher unemployment rates, the impact of elevated inflation for several years with no immediate indications of sustained decline, the interest rate environment, financial system stress, and geopolitical conflict (including the conflicts between Russia and Ukraine and between Israel and Hamas) and stress in the commercial real estate sector, continued to cause uncertainty as to the overall economic environment.

Changes in forecasts, updates to the LDA model and prepayment and curtailment assumptions, as well as changes in the loan mix, resulted in an 11 basis point decrease in the weighted quantitative allowance from December 31, 2022.

Changes in forecasts, updates to the LDA model and prepayment and curtailment assumptions, as well as changes in the loan mix, resulted in a five basis point increase in the weighted quantitative allowance from December 31, 2023.

Qualitative Considerations

18 unchanged sentences

• The extent that there is government assistance (stimulus).

Qualitative adjustments amounted to $ 417,000 and $ 384,000 at December 31, 2023 and December 31, 2022, respectively.

Other Considerations

At December 31, 2023 and 2022, Park had $ 2.1 million and $ 4.2 million, respectively, of PPP loans which were included in the commercial, financial and agricultural portfolio segment.

These loans are guaranteed by the SBA and thus have not been reserved for using the same methodology as the rest of Park’s loan portfolio.

A 10 basis point reserve was calculated for these loans to reflect minimal credit risk at December 31, 2023 and December 31, 2022.

Qualitative adjustments amounted to $ 1.2 million and $ 417,000 at December 31, 2024 and December 31, 2023, respectively.

Qualitative adjustments at December 31, 2024 included a $ 757,000 reserve related to Hurricane Helene which impacted borrowers in Park's Carolina region.

This reserve considers the overall population of loans to borrowers in this area.

Management will continue to evaluate potential losses as a result of Hurricane Helene as additional information becomes available.

The activity in the allowance for credit losses for the years ended December 31, 2024, 2023, and 2022 is summarized in the following tables.

3 unchanged sentences

Beginning balance $ 15,496 $ 16,374 $ 5,227 $ 18,818 $ 27,713 $ 117 $ 83,745

Impact of adopting ASU 2022-02 222 181 — ( 20 ) — — 383

Charge-offs 5,443 99 — 31 12,753 8 18,334

1 unchanged sentence

Net charge-offs (recoveries) 5,005 ( 726 ) ( 1,067 ) ( 335 ) 7,438 7 10,322

(Recovery of) provision for credit losses ( 779 ) ( 1,122 ) ( 325 ) 1,569 3,606 ( 45 ) 2,904

Provision for credit losses 2,192 2,471 831 3,202 5,806 41 14,543

Ending balance $ 12,683 $ 19,571 $ 7,125 $ 22,355 $ 26,081 $ 151 $ 87,966

3 unchanged sentences

Beginning balance $ 16,987 $ 17,829 $ 5,550 $ 16,831 $ 28,021 $ 161 $ 85,379

Impact of adopting ASU 2022-02 222 181 — ( 20 ) — — 383

Charge-offs 1,226 754 546 44 8,293 — 10,863

1 unchanged sentence

Net charge-offs (recoveries) 934 514 ( 2 ) ( 438 ) 3,914 ( 1 ) 4,921

Provision for (recovery of) credit losses 4,192 ( 6,686 ) ( 1,518 ) 5,324 3,311 ( 66 ) 4,557

(Recovery of) provision for credit losses ( 779 ) ( 1,122 ) ( 325 ) 1,569 3,606 ( 45 ) 2,904

Ending balance 15,496 16,374 5,227 18,818 27,713 117 83,745

3 unchanged sentences

Beginning balance $ 14,025 $ 25,466 $ 5,758 $ 11,424 $ 26,286 $ 238 $ 83,197

Impact of adopting ASC 326 ( 8,257 ) 2,119 ( 1,898 ) 3,121 10,925 80 6,090

Charge-offs 2,056 1,578 33 81 5,343 42 9,133

1 unchanged sentence

Net charge-offs (recoveries) 1,230 951 ( 1,310 ) ( 83 ) 1,576 11 2,375

Recovery of credit losses ( 3,008 ) ( 900 ) ( 1,931 ) ( 3,952 ) ( 1,764 ) ( 361 ) ( 11,916 )

Provision for (recovery of) credit losses 4,192 ( 6,686 ) ( 1,518 ) 5,324 3,311 ( 66 ) 4,557

Ending balance $ 16,987 $ 17,829 $ 5,550 $ 16,831 $ 28,021 $ 161 $ 85,379

1 unchanged sentence

Nonperforming consumer loans are not typically individually evaluated for impairment, but receive a portion of the statistical allocation of the ACL.

Loans individually evaluated for impairment include all internally classified commercial nonaccrual loans at December 31, 2023 and all loans internally classified as commercial nonaccrual loans and TDRs at December 31, 2022, which are evaluated for impairment in accordance with U.S.

GAAP (See Note 1-Significant Accounting Policies).

Loans individually evaluated for impairment include all internally classified commercial nonaccrual loans which are individually evaluated for impairment in accordance with U.S.

Additionally, accruing collateral dependent commercial loans to borrowers experiencing financial difficulty are individually evaluated.

(See Note 1-Significant Accounting Policies).

The composition of the ACL at December 31, 2024 and December 31, 2023 was as follows:

7 unchanged sentences

Ending allowance balance attributed to loans:

Individually evaluated for impairment $ 4,980 $ 3 $ — $ — $ — $ — $ 4,983

Individually evaluated for impairment - nonaccrual $ 1,259 $ — $ — $ 40 $ — $ — $ 1,299

Individually evaluated for impairment - accrual — — — — — — —

Collectively evaluated for impairment 11,424 19,571 7,125 22,315 26,081 151 86,667

2 unchanged sentences

Loan balance:

Loans individually evaluated for impairment $ 21,228 $ 20,740 $ 504 $ 2,670 $ — $ 73 $ 45,215

Individually evaluated for impairment - nonaccrual $ 24,194 $ 23,230 $ 8 $ 5,700 $ — $ 17 $ 53,149

Individually evaluated for impairment - accrual 15,290 — — — — — 15,290

Loans collectively evaluated for impairment 1,230,101 1,969,785 411,988 2,194,457 1,910,372 29,812 7,746,515

2 unchanged sentences

ACL as a percentage of loan balance:

Loans individually evaluated for impairment 23.46 % 0.01 % — % — % — % — % 11.02 %

Individually evaluated for impairment - nonaccrual 5.20 % — % — % 0.70 % — % — % 2.44 %

Individually evaluated for impairment - accrual — % — % — % — % — % — % — %

Loans collectively evaluated for impairment 0.93 % 0.99 % 1.73 % 1.02 % 1.37 % 0.51 % 1.12 %

9 unchanged sentences

Ending allowance balance attributed to loans:

Individually evaluated for impairment $ 3,426 $ 131 $ — $ — $ — $ 9 $ 3,566

Individually evaluated for impairment - nonaccrual $ 4,980 $ 3 $ — $ — $ — $ — $ 4,983

Individually evaluated for impairment - accrual — — — — — — —

Collectively evaluated for impairment 10,516 16,371 5,227 18,818 27,713 117 78,762

2 unchanged sentences

Loan balance:

Loans individually evaluated for impairment $ 41,307 $ 32,423 $ 1,712 $ 2,191 $ — $ 708 $ 78,341

Individually evaluated for impairment - nonaccrual $ 21,228 $ 20,740 $ 504 $ 2,670 $ — $ 73 $ 45,215

Individually evaluated for impairment - accrual — — — — — — —

Loans collectively evaluated for impairment 1,274,390 1,853,383 303,969 2,026,537 1,945,936 23,956 7,428,171

2 unchanged sentences

ACL as a percentage of loan balance:

Loans individually evaluated for impairment 8.29 % 0.40 % — % — % — % 1.27 % 4.55 %

Individually evaluated for impairment - nonaccrual 23.46 % 0.01 % — % — % — % — % 11.02 %

Individually evaluated for impairment - accrual — % — % — % — % — % — % — %

Loans collectively evaluated for impairment 0.83 % 0.88 % 1.72 % 0.93 % 1.42 % 0.49 % 1.06 %

55 unchanged sentences

Leased assets, net $ 1,667 $ 2,306

Depreciation expense on operating lease assets of $ 693,000 , $ 1.1 million, and $ 1.5 million was recorded for the years ended December 31, 2023, 2022 and 2021, respectively.

Depreciation expense on operating lease assets of $ 726,000 , $ 693,000 , and $ 1.1 million was recorded for the years ended December 31, 2024, 2023 and 2022, respectively.

Investments in Qualified Affordable Housing

9 unchanged sentences

Park expects that the commitments as of December 31, 2024 will be funded between 2025 and 2039.

During the years ended December 31, 2023, 2022 and 2021, Park recognized amortization expense of $ 8.3 million, $ 7.7 million and $ 7.3 million, respectively, which was included within the provision for income taxes.

During the years ended December 31, 2024, 2023 and 2022, Park recognized amortization expense of $ 8.1 million, $ 8.3 million and $ 7.7 million, respectively, which was included within the provision for income taxes on the Consolidated Statements of Income and within investment in qualified affordable housing tax credits amortization on the Consolidated Statements of Cash Flows.

For the years ended December 31, 2024, 2023 and 2022, Park recognized tax credits and other benefits from its affordable housing tax credit investments of $ 10.0 million , $ 9.8 million and $ 9.3 million , respectively.

4 unchanged sentences

Commercial real estate $ 938 $ 983

Residential real estate — —

Total OREO $ 938 $ 983

2 unchanged sentences

Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value, less costs to sell, when acquired.

During the year ended December 31, 2022, Park recognized a $ 12.0 million OREO valuation markup related to the foreclosure and subsequent sale of a property collateralizing a former Vision Bank relationship.

During the years ended December 31, 2023 and 2022, Park recognized $ 46,000 and $ 12.0 million, respectively, in OREO valuation markups related to the foreclosure and subsequent sale of properties collateralizing former Vision Bank relationships.

This income is included in "OREO valuation markup" on the Consolidated Statements of Income.

There was no OREO valuation markup related to former Vision Bank relationships during the year ended December 31, 2024.

During the year ended December 31, 2022, Park recognized a $ 5.6 million gain on the sale of OREO related to former Vision Bank relationships.

This income is included in "(Loss) gain on the sale of OREO, net" on the Consolidated Statements of Income.

There was no gain or loss on the sale of OREO related to former Vision Bank relationships during the year ended December 31, 2023.

During the years ended December 31, 2024 and 2022, Park recognized $ 115,000 and $ 5.6 million, respectively, in net gains on the sale of OREO related to former Vision Bank relationships.

This income is included in "Gain (loss) on the sale of OREO, net" on the Consolidated Statements of Income.

There was no gain or loss on the sale of OREO related to former Vision Bank relationships during the years ended December 31, 2023.

In addition to real estate, Park may also repossess different types of collateral.

53 unchanged sentences

Total lease liabilities $ 16,505

(1) Includes a tenant improvement allowance of $524,000 related to the reimbursement of leasehold expenditures.

At December 31, 2024 and 2023, non-interest bearing and interest bearing deposits were as follows:

4 unchanged sentences

The table below details the maturities of time deposits at December 31, 2024.

Time deposits below include $ 165.0 million of brokered deposits.

Time deposits below include $ 176.5 million of brokered and BID CD deposits.

(In thousands)

4 unchanged sentences

Time deposits that met or exceeded the FDIC insurance limit of $250,000 at December 31, 2024 and 2023 were $ 255.3 million and $ 132.8 million, respectively.

Time deposits that met or exceeded the FDIC insurance limit of $250,000 included $ 76.5 million and $ 15.0 million of BID CD deposits at December 31, 2024 and 2023, respectively.

Repurchase Agreement Borrowings

37 unchanged sentences

Weighted-average interest rate:

As of year-end 1.39 % N.A.

As of year-end 1.88 % 5.44 %

Paid during the year 1.76 % 5.83 %

0.57 % 0.04 %

(1) Interest rate swaps with notional amounts of zero at December 31, 2022 (the swap was paid off during 2022) were designated as cash flow hedges of certain FHLB advances.

Including interest expense related to the swaps, the weighted average interest rate paid during the year ended December 31, 2022 on FHLB advances was 3.62 %.

During 2023 and 2024, outstanding FHLB advances were collateralized by investment securities owned by PNB and by various loans pledged under a blanket agreement by PNB.

2 unchanged sentences

See Note 15 - Repurchase Agreement Borrowings for information related to investment securities collateralizing repurchase agreements.

Long-Term Debt

Park did not have long-term borrowings at either December 31, 2023 or December 31, 2022.

On June 20, 2019, Park issued a $ 50 million term note to U.S.

Bank National Association.

This term note had a maturity date of June 21, 2022 and accrued interest at a floating rate of one-month LIBOR plus 1.65%.

On August 2, 2021, Park prepaid the outstanding balance of $ 27.5 million of the term note to U.S.

Bank National Association.

Subordinated Notes

15 unchanged sentences

provided, however, that if the Benchmark rate is less than zero, then the Benchmark rate will be deemed to be zero.

The Company may, at its option, beginning with the interest payment date of September 1, 2025 and on any interest payment date thereafter, redeem the Subordinated Notes, in whole or in part, from time to time, subject to obtaining the prior approval of the holders of the Company’s senior indebtedness and of the Federal Reserve Board to the extent the approval of the Federal Reserve Board is then required under the capital adequacy rules of the Federal Reserve Board, at a redemption price equal to 100% of the principal amount of the Subordinated Notes being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption.

The Company may, at its option, beginning with the interest payment date of September 1, 2025 and on any interest payment date thereafter, redeem the Subordinated Notes, in whole or in part,

subject to obtaining the prior approval of the holders of the Company’s senior indebtedness and of the Federal Reserve Board, if required, at a redemption price equal to 100% of the principal amount of the Subordinated Notes being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption.

The issuance costs of the Subordinated Notes totaled $ 2.4 million, which amount is being amortized through the Subordinated Note call date.

29 unchanged sentences

Unrealized losses $ — $ —

Interest expense recorded on swap transactions was $ 171,000 and $ 614,000 for the years ended December 31, 2022 and 2021, respectively.

No interest expense was recorded on swap transactions for the year ended December 31, 2023.

Additionally, Park recognized gains of $ 154,000 and $ 492,000 , net of income taxes, related to borrowing swaps that was recorded in "Other comprehensive income (loss)" on the Consolidated Statements of Comprehensive Income (Loss) during the years ended December 31, 2022 and 2021, respectively.

No gain or loss related to borrowing swaps was recorded during the year ended December 31, 2023.

Interest Rate Swaps

Park recognized a gain of $ 154,000 , net of income taxes, related to borrowing swaps that was recorded in "Other comprehensive income (loss)" on the Consolidated Statements of Comprehensive Income (Loss) during the year ended December 31, 2022 .

No gain or loss related to borrowing swaps was recorded during the years ended December 31, 2024 and 2023 .

The following table reflects the interest rate swaps included in the Consolidated Balance Sheets as of December 31, 2024 and 2023:

32 unchanged sentences

The 2017 Non-Employee Directors LTIP makes equity-based awards and cash-based awards available for grant to non-employee director participants in the form of nonqualified stock options, SARs, Restricted Stock, Restricted Stock Units, Other Stock-Based Awards, and cash-based awards.

Under the 2017 Non-Employee Directors LTIP, 150,000 common shares are authorized to be delivered in connection with grants under the 2017 Non-Employee Directors LTIP.

Under the 2017 Non-

Employee Directors LTIP, 150,000 common shares are authorized to be delivered in connection with grants under the 2017 Non-Employee Directors LTIP.

The common shares to be delivered under the 2017 Non-Employee Directors LTIP are to consist of either common shares currently held or common shares subsequently acquired by Park as treasury shares, including common shares purchased in the open market or in private transactions.

6 unchanged sentences

A summary of changes in the common shares subject to nonvested PBRSUs for the years ended December 31, 2024 and 2023 follows.

Common shares subject to PBRSUs

PBRSUs herein represent the maximum number of nonvested PBRSUs.

The fair value of the PBRSUs was determined using the quoted price of Park stock on the date of grant.

Common shares subject to PBRSUs Weighted-Average Grant-Date Fair Value

Nonvested at January 1, 2023 199,650 $ 108.97

3 unchanged sentences

Adjustment for performance conditions of PBRSUs (1)

Nonvested at January 1, 2023 199,650

Nonvested at December 31, 2023 186,936 $ 122.68

Granted 59,165 $ 131.30

3 unchanged sentences

Nonvested at December 31, 2024 (2)

186,020 $ 131.20

(1) The number of PBRSUs earned depends on the level of achievement with respect to certain performance criteria.

4 unchanged sentences

Twelve Months Ended

PBRSU and TBRSU vested 62,815 55,464

PBRSUs and TBRSUs vested 58,056 62,815

Common shares withheld to satisfy employee income tax withholding obligations 22,895 23,973

19 unchanged sentences

Interest cost 6,443 6,523

Plan amendments — 558

Actuarial loss (gain) 10,072 ( 54,566 )

Actuarial (gain) loss ( 9,804 ) 10,072

Benefits paid ( 38,239 ) ( 11,008 )

1 unchanged sentence

Funded status at end of year (fair value of plan assets less benefit obligation) $ 121,238 $ 93,677

The increase in the projected benefit obligation ("PBO") from $ 127.4 million as of December 31, 2022 to $ 139.2 million as of December 31, 2023, was the result of demographic losses driven by salary increases greater than assumed and a decrease in the discount rate from 5.32 % to 5.14 %, partially offset by assumption updates for a change in the mortality table for lump sum distributions, reflecting updates for the 2023 assumption study, and a decrease in the interest credit rate.

The decrease in the projected benefit obligation ("PBO") from $ 139.2 million as of December 31, 2023 to $ 104.5 million as of December 31, 2024, was the result of an increase in benefits paid, an increase in the discount rate from 5.14 % to 5.89 % and assumption updates fo r a change in the mortality table for lump sum distributions, reflecting updates for the 2024 assumption study, partially offset by demographic losses and an increase in the interest credit rate.

The asset allocation for the Pension Plan as of each measurement date, by asset category, was as follows:

8 unchanged sentences

The expected long-term rate of return on plan assets used to measure the benefit obligation was 6.92 % at both December 31, 2024 and December 31, 2023.

This return was based on the expected long-term return of each of the asset categories, weighted based on the median of the target allocation for each class.

This return was estimated based on historical returns, current trends in the plan assets as well as projected future rates of returns on those assets.

The accumulated benefit obligation for the Pension Plan was $ 82.1 million and $ 113.4 million at December 31, 2024 and 2023, respectively.

5 unchanged sentences

Rate of compensation increase

Under age 25 (under age 30 for 2022 and 2021) 7.50 % 8.25 % 8.25 %

Ages 25-29 (ages 30-39 for 2022 and 2021) 7.00 % 6.00 % 6.00 %

Ages 30-34 (ages 40-49 for 2022 and 2021) 6.75 % 5.00 % 5.00 %

Ages 35-39 (ages 50-54 for 2022 and 2021) 6.00 % 4.25 % 4.25 %

Ages 40-44 (ages 55-59 for 2022 and 2021) 5.25 % 3.75 % 3.75 %

Ages 45-54 (ages 60-64 for 2022 and 2021) 4.75 % 3.50 % 3.50 %

Ages 55-69 (ages 65 and over for 2022 and 2021) 3.75 % 3.25 % 3.25 %

Ages 70 and over (for 2023) 3.00 % N/A N/A

Interest crediting rate 3.89 % 4.07 % N/A

Under age 25 (under age 30 for 2022) 7.50 % 7.50 % 8.25 %

Ages 25-29 (ages 30-39 for 2022) 7.00 % 7.00 % 6.00 %

Ages 30-34 (ages 40-49 for 2022) 6.75 % 6.75 % 5.00 %

Ages 35-39 (ages 50-54 for 2022) 6.00 % 6.00 % 4.25 %

Ages 40-44 (ages 55-59 for 2022) 5.25 % 5.25 % 3.75 %

Ages 45-54 (ages 60-64 for 2022) 4.75 % 4.75 % 3.50 %

Ages 55-69 (ages 65 and over for 2022) 3.75 % 3.75 % 3.25 %

Ages 70 and over (for 2023 and 2024) 3.00 % 3.00 % N/A

Interest crediting rate 4.64 % 3.89 % 4.07 %

The estimated future pension benefit payments reflecting expected future service for the next ten years are shown below (in thousands):

2030-2034 43,780

2029-2033 54,844

Total $ 86,037

The following table shows ending balances of accumulated other comprehensive income (loss) at December 31, 2023 and 2022.

The following table shows ending balances of accumulated other comprehensive income at December 31, 2024 and 2023.

(In thousands) 2024 2023

Prior service cost $ ( 340 ) $ ( 388 )

Net actuarial gain (loss) 2,529 ( 8,020 )

Net actuarial gain 21,547 2,529

Total 21,207 2,141

Deferred tax (liability) asset ( 449 ) 1,776

Accumulated other comprehensive income (loss) $ 1,692 $ ( 6,680 )

Using actuarial measurement dates of December 31 for 2023, 2022 and 2021, components of net periodic benefit income (loss) and other amounts recognized in other comprehensive income (loss) were as follows:

Deferred tax liability ( 4,453 ) ( 449 )

Accumulated other comprehensive income $ 16,754 $ 1,692

Using actuarial measurement dates of December 31 for 2024, 2023 and 2022, components of net periodic benefit income and other amounts recognized in other comprehensive income (loss) were as follows:

(In thousands) 2024 2023 2022 Affected Line Item in the Consolidated Statements of Income

Components of net periodic benefit income (loss) and other amounts recognized in other comprehensive income (loss)

Components of net periodic benefit income and other amounts recognized in other comprehensive income (loss)

Service cost $ ( 6,916 ) $ ( 6,236 ) $ ( 9,749 ) Employee benefits

1 unchanged sentence

Expected return on plan assets 15,754 14,143 17,798 Other components of net periodic benefit income

Recognized net actuarial loss and prior service cost ( 48 ) 15 ( 2,220 ) Other components of net periodic benefit income

Net periodic benefit income (loss) $ 1,336 $ 2,359 $ ( 1,764 )

Net actuarial gain (loss) and prior service credit (cost) $ 10,549 $ ( 1,109 ) $ 34,019

Amortization of net loss (gain) 48 ( 15 ) 2,220

Recognized prior service cost ( 48 ) ( 48 ) 15 Other components of net periodic benefit income

Settlement income 6,148 — — Pension settlement gain

Net periodic benefit income $ 8,495 $ 1,336 $ 2,359

Net actuarial gain (loss) $ 25,166 $ 10,549 $ ( 1,109 )

Amortization of actuarial gain ( 6,148 ) — —

Amortization of prior service cost (credit) 48 48 ( 15 )

Total recognized in other comprehensive income (loss) 19,066 10,597 ( 1,124 )

Total recognized in net benefit income (loss) and other comprehensive income (loss) $ 11,933 $ 1,235 $ 34,475

The weighted average assumptions used to determine net periodic benefit income (loss) for the years ended December 31, 2023, 2022 and 2021 are listed below:

Total recognized in net benefit income and other comprehensive income (loss) $ 27,561 $ 11,933 $ 1,235

During the year ended December 31, 2024, Park recognized a $ 6.1 million pension settlement gain due to a combination of lump sum payouts as well as the purchase of a nonparticipating annuity contract which will provide ongoing benefits to vested participants.

To calculate the gain, the PBO was remeasured as of September 30, 2024 as well as December 31, 2024.

In calculating the September 30, 2024 PBO, a discount rate of 5.17 % was used which was a 3 basis point increase from the discount rate utilized to calculate the December 31, 2023 PBO.

There were no changes from December 31, 2023 to the assumptions utilized for the long-term rate of return on plan assets, salaries increases, turnover rates or mortality.

There was no pension settlement gain recognized during the year ended December 31, 2023.

The weighted average assumptions used to determine net periodic benefit income for the years ended December 31, 2024, 2023 and 2022 are listed below:

2024 2023 2022

1 unchanged sentence

Rate of compensation increase

Under age 30 8.25 % 8.25 % 8.25 %

Ages 30-39 6.00 % 6.00 % 6.00 %

Ages 40-49 5.00 % 5.00 % 5.00 %

Ages 50-54 4.25 % 4.25 % 4.25 %

Ages 55-59 3.75 % 3.75 % 3.75 %

Ages 60-64 3.50 % 3.50 % 3.50 %

Ages 65 and over 3.25 % 3.25 % 3.25 %

Under age 25 (under age 30 for 2023 and 2022) 7.50 % 8.25 % 8.25 %

Ages 25-29 (ages 30-39 for 2023 and 2022) 7.00 % 6.00 % 6.00 %

Ages 30-34 (ages 40-49 for 2023 and 2022) 6.75 % 5.00 % 5.00 %

Ages 35-39 (ages 50-54 for 2023 and 2022) 6.00 % 4.25 % 4.25 %

Ages 40-44 (ages 55-59 for 2023 and 2022) 5.25 % 3.75 % 3.75 %

Ages 45-54 (ages 60-64 for 2023 and 2022) 4.75 % 3.50 % 3.50 %

Ages 55-69 (ages 65 and over for 2023 and 2022) 3.75 % 3.25 % 3.25 %

Ages 70 and over (for 2024) 3.00 % N/A N/A

Interest crediting rate 3.89 % 4.07 % N/A

Expected long-term return on plan assets 6.92 % 6.92 % 6.92 %

2 unchanged sentences

Additionally, due to their short-term nature, the fair value of interest bearing demand deposits is determined by reference to their face value (Level 1 inputs).

Interest bearing time deposits, United States Government agency obligations and corporate bonds are valued by the trustee based on yields available on comparable securities of issuers with similar credit ratings as of the end of the year (Level 2 inputs).

Interest bearing time deposits, United States treasury notes, United States Government agency obligations and corporate bonds are valued by the trustee based on yields available on comparable securities of issuers with similar credit ratings as of the end of the year (Level 2 inputs).

No investments were categorized as Level 3 inputs.

5 unchanged sentences

Mutual funds 34,973 — 49,740 —

Treasury Notes — 55,062 — —

Government agency obligations — 11,237 — 12,466

9 unchanged sentences

The Corporation has entered into Supplemental Executive Retirement Plan Agreements (the "SERP Agreements") with certain key officers of Park National Corporation and its subsidiaries which provide defined pension benefits in excess of limits imposed by federal income tax law.

The accrued benefit cost for the SERP Agreements totaled $ 15.2 million and $ 14.2 million for 2023 and 2022, respectively, and is recorded within "Other liabilities" on the Consolidated Balance Sheet.

The accrued benefit cost for the SERP Agreements totaled $ 15.5 million and $ 15.2 million

for 2024 and 2023, respectively, and is recorded within "Other liabilities" on the Consolidated Balance Sheet.

The expense for the Corporation was as follows:

9 unchanged sentences

Allowance for credit losses $ 19,144 $ 18,248

Accumulated other comprehensive loss – Pension Plan — 1,776

Allowance for unfunded credit losses 1,288 1,125

Accumulated other comprehensive loss – Unrealized losses on debt securities AFS 16,728 18,045

Deferred compensation 6,811 6,177

OREO valuation adjustments 100 11

Net deferred loan fees 581 1,384

Deferred contract bonus 205 317

Nonvested equity-based compensation 3,130 3,019

Net operating loss ("NOL") carryforward 2,173 2,222

Capital loss carryforward — 299

Fixed assets 1,728 1,243

1 unchanged sentence

Other 1,009 939

Total deferred tax assets before valuation allowance $ 56,184 $ 56,022

Valuation allowance ( 562 ) —

Total deferred tax assets $ 55,622 $ 56,022

14 unchanged sentences

Park performs an analysis to determine if a valuation allowance against deferred tax assets is required in accordance with U.S.

Management determined that it was not required to establish a valuation allowance against the December 31, 2023 or 2022 deferred tax assets in accordance with U.S.

GAAP since it was more likely than not that the deferred tax asset will be fully utilized in future periods.

At December 31, 2024, management determined that it was required to establish a $ 0.6 million state tax valuation allowance against certain deferred tax assets generated by one of its non-bank subsidiaries since it was not more likely than not

that the deferred tax assets would be fully utilized in future periods.

No valuation allowance was required for the year ended December 31, 2023.

The components of the provision for federal income taxes are shown below:

3 unchanged sentences

1,360 1,190 1,180

Amortization of qualified affordable housing projects 8,265 7,743 7,313

( 708 ) 464 ( 3,006 )

Amortization of qualified affordable housing projects and historic tax credits 8,449 8,265 7,743

( 517 ) ( 708 ) 464

21 unchanged sentences

Additions for tax positions of prior years — 52 25

Reductions for tax positions of prior years ( 28 ) — —

Reductions due to statute of limitations ( 24 ) ( 23 ) ( 295 )

December 31 Balance $ 98 $ 145 $ 69

The amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in the future periods at December 31, 2023, 2022 and 2021 was $ 0.1 million, $ 0.1 million and $ 0.3 million, respectively.

The amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in the future periods at December 31, 2024, 2023 and 2022 was $ 87,000 , $ 123,000 and $ 62,000 , respectively.

Park does not expect the total amount of unrecognized tax benefits to significantly increase or decrease during 2024.

3 unchanged sentences

federal income tax and income tax in various state jurisdictions.

The Corporation is subject to routine audits of tax returns by the Internal Revenue Service and states in which we

conduct business.

The Corporation is subject to routine audits of tax returns by the Internal Revenue Service and states in which we conduct business.

No material adjustments have been made on closed federal and state tax audits.

5 unchanged sentences

Other comprehensive income before reclassifications 19,881 4,539 — 24,420

Amounts reclassified from accumulated other comprehensive income 38 6,221 — 6,259

Amounts reclassified from accumulated other comprehensive loss ( 4,819 ) 415 — ( 4,404 )

Net current period other comprehensive income $ 15,062 $ 4,954 $ — $ 20,016

1 unchanged sentence

Beginning balance at January 1, 2023 $ ( 6,680 ) $ ( 95,714 ) $ — $ ( 102,394 )

Other comprehensive (loss) income before reclassifications ( 876 ) ( 116,867 ) 154 ( 117,589 )

Other comprehensive income before reclassifications 8,334 21,610 — 29,944

Amounts reclassified from accumulated other comprehensive loss 38 6,221 — 6,259

Net current period other comprehensive (loss) income $ ( 888 ) $ ( 116,867 ) $ 206 $ ( 117,549 )

Net current period other comprehensive income $ 8,372 $ 27,831 $ — $ 36,203

Ending balance at December 31, 2023 $ 1,692 $ ( 67,883 ) $ — $ ( 66,191 )

Beginning balance at January 1, 2022 $ ( 5,792 ) $ 21,153 $ ( 206 ) $ 15,155

Other comprehensive income (loss) before reclassifications 26,875 ( 19,537 ) 492 7,830

Amounts reclassified from accumulated other comprehensive income 1,754 — — 1,754

Net current period other comprehensive income (loss) $ 28,629 $ ( 19,537 ) $ 492 $ 9,584

Other comprehensive (loss) income before reclassifications ( 876 ) ( 116,867 ) 154 ( 117,589 )

Amounts reclassified from accumulated other comprehensive loss ( 12 ) — 52 40

Net current period other comprehensive (loss) income $ ( 888 ) $ ( 116,867 ) $ 206 $ ( 117,549 )

Ending balance at December 31, 2022 $ ( 6,680 ) $ ( 95,714 ) $ — $ ( 102,394 )

The following table provides information concerning amounts reclassified out of accumulated other comprehensive (loss) income for the years ended December 31, 2023, 2022 and 2021:

The following table provides information concerning amounts reclassified out of accumulated other comprehensive income (loss) for the years ended December 31, 2024, 2023 and 2022:

Amount Reclassified from Accumulated Other Comprehensive (Loss) Income Affected Line Item in the Consolidated Statements of Income

1 unchanged sentence

Amortization of defined benefit pension items

Amortization of prior service cost (credit) $ 48 $ ( 15 ) $ ( 15 ) Employee benefits

Amortization of net actuarial loss — — 2,235 Employee benefits

Amortization of prior service cost (credit) $ 48 $ 48 $ ( 15 ) Other components of net periodic pension benefit income

Gain recognition on partial settlement of vested benefits ( 6,148 ) — — Pension settlement gain

(Income) loss before income taxes ( 6,100 ) 48 ( 15 ) Income before income taxes

28 unchanged sentences

Park awarded 59,165 , 54,698 and 52,335 PBRSUs to certain employees during the years ended December 31, 2024, 2023 and 2022, respectively.

During the years ended December 31, 2023 and 2021, Park repurchased 199,000 and 137,659 common shares, respectively, to fund the PBRSUs, TBRSUs and common shares awarded to directors of Park and to directors of PNB (and its divisions) as well as pursuant to Park's previously announced stock repurchase authorizations.

There were no common shares repurchased during the year ended December 31, 2022.

During the year ended December 31, 2023, Park repurchased 199,000 common shares, to fund the PBRSUs, TBRSUs and common shares awarded to directors of Park and to directors of PNB (and its divisions) as well as pursuant to Park's previously announced stock repurchase authorizations.

There were no common shares repurchased during the years ended December 31, 2024 or December 31, 2022.

Dividend Restrictions

23 unchanged sentences

Quoted prices (unadjusted) for identical assets or liabilities in active markets that Park has the ability to access as of the measurement date.

Level 1 inputs for assets or liabilities that are not actively traded.

Also consists of an observable market price for a similar asset or liability.

This includes the use of “matrix pricing” to value debt securities absent the exclusive use of quoted prices.

Consists of unobservable inputs that are used to measure fair value when observable market inputs are not available.

Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities;

quoted prices in markets that are not active;

or other inputs that are observable or can be corroborated by observable market data.

Significant unobservable inputs that reflect Park's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

This could include the use of internally developed models, financial forecasting and similar inputs.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the balance sheet date.

When possible, the Company looks to active and observable markets to price identical assets or liabilities.

When identical

assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities.

When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities.

However, certain assets and liabilities are not traded in observable markets and Park must use other valuation methods to develop a fair value.

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Investment securities:

Obligations of U.S.

Government sponsored entities $ — $ 249 $ — $ 249

Obligations of states and political subdivisions — 186,883 — 186,883

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Investment securities:

Obligations of U.S.

Government sponsored entities $ — $ 37,213 $ — $ 37,213

Obligations of states and political subdivisions $ — $ 241,184 $ — $ 241,184

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Loan interest rate swaps — 1,069 — 1,069

The following methods and assumptions were used by the Company in determining the fair value of the financial assets and liabilities discussed above:

The following methods and assumptions were used by the Company in determining the fair value of the financial assets and financial liabilities discussed above:

Fair value swap:

The fair value of the swap agreement entered into with the purchaser of the Visa Class B shares represents an internally developed estimate of the exposure based upon probability-weighted potential Visa litigation losses and is classified as Level 3.

Interest rate swaps:

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If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments (Level 2).

For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows (Level 3).

Fair value swap:

For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using DCF (Level 3).

Mortgage interest rate lock commitments:

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Balance at January 1, 2023 $ 7,000 $ 439 $ ( 243 )

Included in other income / other (expense) — ( 60 ) ( 221 )

Transfers into level 3 11 — —

Total gains / (losses)

Included in other income / other (expense) — 34 ( 175 )

Included in other comprehensive income ( 662 ) — —

Purchases, sales, issuances and settlements, other, net — — 295

Balance at December 31, 2023 $ 6,349 $ 473 $ ( 123 )

Level 3 corporate debt securities consist of a single debt security at both December 31, 2024 and 2023 which was valued using a discounted cash flow calculation.

Significant unobservable inputs include the credit spread assumption which was 3.67% and 3.84% at December 31, 2024 and 2023, respectively.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis:

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Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available.

Such adjustments

result in a Level 3 classification of the inputs for determining fair value.

Collateral is then adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and the client’s business, resulting in a Level 3 fair value classification.

Such adjustments result in a Level 3 classification of the inputs for determining fair value.

Collateral is then adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the customer and the customer’s business, resulting in a Level 3 fair value classification.

Individually evaluated loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Additionally, valuations for all collateral dependent loans are updated annually, either through independent valuations by a licensed appraiser or a verification of value ("VOV") performed by an internal licensed appraiser, in accordance with Company policy.

Additionally, valuations for all collateral dependent loans are updated annually, either through independent valuations by a licensed appraiser or a VOV performed by an internal licensed appraiser, in accordance with Company policy.

A VOV can only be used in select circumstances and verifies that the original appraised value has not deteriorated through property inspection, consideration of market conditions, and performance of all valuation methods utilized in a prior valuation.

After the adoption of ASU 2022-02 on January 1, 2023, loans individually evaluated for impairment include all internally classified commercial nonaccrual loans.

Prior to the adoption of ASU 2022-02, loans individually evaluated for impairment included all internally classified commercial nonaccrual loans and accruing TDRs.

Loans individually evaluated for impairment include all internally classified commercial nonaccrual loans and accruing collateral dependent loans to borrowers experiencing financial difficulty.

Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less costs to sell when acquired.

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These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach.

Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available.

Adjustments are routinely made in the appraisal

process by the independent appraisers to adjust for differences between the comparable sales and income data available.

Such adjustments result in a Level 3 classification of the inputs for determining fair value.

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Management generally applies a 15 % discount to real estate appraised values which management expects will cover all disposition costs (including selling costs).

This 15 % discount is based on historical discounts to appraised values on sold OREO properties.

This 15 % discount is based on historical discounts to appraised values on sold OREO.

• Income approach appraisals typically incorporate the annual net operating income of the business divided by an appropriate capitalization rate, as determined by the appraiser.

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As of December 31, 2024 and 2023, there were no PCD loans carried at fair value.

Additionally, there were no accruing individually evaluated collateral dependent loans carried at fair value.

A new cost basis is established at the time a property is initially recorded in OREO.

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(In thousands) Level 1 Level 2 Level 3 Balance at December 31, 2024

Individually evaluated collateral dependent loans recorded at fair value:

Nonaccrual individually evaluated collateral dependent loans recorded at fair value:

Commercial real estate $ — $ — $ 1,022 $ 1,022

Residential real estate — — 1,924 1,924

Total individually evaluated collateral dependent loans recorded at fair value $ — $ — $ 2,497 $ 2,497

Total nonaccrual individually evaluated collateral dependent loans recorded at fair value $ — $ — $ 2,946 $ 2,946

MSRs $ — $ 371 $ — $ 371

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(In thousands) Level 1 Level 2 Level 3 Balance at December 31, 2023

Individually evaluated collateral dependent loans recorded at fair value:

Nonaccrual individually evaluated collateral dependent loans recorded at fair value:

Commercial real estate $ — $ — $ 2,315 $ 2,315

Residential real estate — — 182 182

Total individually evaluated collateral dependent loans recorded at fair value $ — $ — $ 5,773 $ 5,773

Total nonaccrual individually evaluated collateral dependent loans recorded at fair value $ — $ — $ 2,497 $ 2,497

MSRs $ — $ 866 $ — $ 866

OREO recorded at fair value:

The tables below provide additional detail on those individually evaluated loans which are recorded at fair value as well as the remaining individually evaluated loan portfolio not included above.

The remaining individually evaluated loans consist of 1) loans which are not collateral dependent, 2) loans which are not secured by real estate, and 3) loans carried at cost as the fair value of the underlying collateral or the present value of expected future cash flows on each of the loans exceeded the book value for each respective credit.

Commercial real estate $ — $ — $ 938 $ 938

Total OREO recorded at fair value $ — $ — $ 938 $ 938

The tables below provide additional detail on those nonaccrual individually evaluated loans which are recorded at fair value as well as the remaining nonaccrual individually evaluated loan portfolio not included above.

The remaining nonaccrual individually evaluated loans consist of 1) loans which are not collateral dependent, 2) loans which are not secured by real estate, and 3) loans carried at cost as the fair value of the underlying collateral or the present value of expected future cash flows on each of the loans exceeded the book value for each respective credit.

December 31, 2024

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Balance Prior Charge-Offs Specific Valuation Allowance Carrying Balance

Total individually evaluated collateral dependent loans recorded at fair value $ 2,499 $ 2,048 $ 2 $ 2,497

Remaining individually evaluated loans 42,716 301 4,981 37,735

Total individually evaluated loans $ 45,215 $ 2,349 $ 4,983 $ 40,232

Total nonaccrual individually evaluated collateral dependent loans recorded at fair value $ 2,986 $ 488 $ 40 $ 2,946

Remaining nonaccrual individually evaluated loans 50,163 4,521 1,259 48,904

Total nonaccrual individually evaluated loans $ 53,149 $ 5,009 $ 1,299 $ 51,850

December 31, 2023

(In thousands) Recorded Investment Prior Charge-Offs Specific Valuation Allowance Carrying Balance

Total individually evaluated collateral dependent loans recorded at fair value $ 5,903 $ 1,523 $ 130 $ 5,773

Remaining individually evaluated loans 72,438 252 3,436 69,002

Total individually evaluated loans $ 78,341 $ 1,775 $ 3,566 $ 74,775

The (expense) income from credit adjustments related to individually evaluated loans carried at fair value for the years ended December 31, 2023, 2022 and 2021 was $( 1.0 ) million, $( 0.9 ) million, and $ 0.5 million, respectively.

Total nonaccrual individually evaluated collateral dependent loans recorded at fair value $ 2,499 $ 2,048 $ 2 $ 2,497

Remaining nonaccrual individually evaluated loans 42,716 301 4,981 37,735

Total nonaccrual individually evaluated loans $ 45,215 $ 2,349 $ 4,983 $ 40,232

The expense from credit adjustments related to nonaccrual individually evaluated loans carried at fair value for the years ended December 31, 2024, 2023 and 2022 was $ 0.2 million, $ 1.0 million, and $ 0.9 million, respectively.

MSRs totaled $ 13.9 million at December 31, 2024.

Of this $ 14.7 million MSR carrying balance, $ 0.9 million was recorded at fair value and included a valuation allowance of $ 0.1 million.

Of this $ 13.9 million MSR carrying balance, $ 0.4 million was recorded at fair value and included a valuation allowance of $ 19,000 .

The remaining $ 13.5 million was recorded at cost, as the fair value exceeded cost at December 31, 2024.

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Total OREO held by Park at December 31, 2024 and 2023 was $ 0.9 million and $ 1.0 million, respectively.

At December 31, 2023 , there was $ 938,000 of OREO held by Park that was carried at fair value due to fair value adjustments made subsequent to the initial OREO measurement.

At December 31, 2022 , there was no OREO carried at fair value.

The net (expense) income related to OREO fair value adjustments was $( 0.4 ) million, $ 11.3 million and $ 32,000 for the years ended December 31, 2023, 2022 and 2021, respectively.

At both December 31, 2024 and 2023 , there was $ 938,000 of OREO held by Park that was carried at fair value due to fair value adjustments made subsequent to the initial OREO measurement.

The net income (expense) related to OREO fair value

adjustments was $ 30,000 , $( 0.4 ) million and $ 11.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2024 and December 31, 2023:

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(In thousands) Fair Value Valuation Technique Unobservable Input(s) Range (Weighted Average)

Individually evaluated collateral dependent loans:

Nonaccrual individually evaluated collateral dependent loans:

Commercial real estate $ 1,022 Sales comparison approach Adj to comparables 0.0 % - 30.0 % ( 15.2 %)

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Residential real estate $ 1,924 Sales comparison approach Adj to comparables 4.7 % - 45.5 % ( 21.6 %)

Income approach Capitalization rate 6.3 % ( 6.3 %)

Other real estate owned:

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(In thousands) Fair Value Valuation Technique Unobservable Input(s) Range (Weighted Average)

Individually evaluated collateral dependent loans:

Nonaccrual individually evaluated collateral dependent loans:

Commercial real estate $ 2,315 Sales comparison approach Adj to comparables 0.2 % - 89.0 % ( 21.2 %)

Income approach Capitalization rate 7.5 % - 9.5 % ( 8.9 %)

Residential real estate $ 182 Sales comparison approach Adj to comparables 1.2 % - 78.6 % ( 7.6 %)

Other real estate owned:

Commercial real estate $ 938 Sales comparison approach Adj to comparables 5.0 % - 10.0 % ( 7.5 %)

Cost approach Entrepreneurial profit 5.0 % ( 5.0 %)

Cost approach Accumulated depreciation 50.0 % ( 50.0 %)

Residential real estate $ 200 Sales comparison approach Adj to comparables 1.9 % - 119.8 % ( 17.4 %)

Assets Measured at Net Asset Value:

Park's portfolio of Partnership Investments are valued using the NAV practical expedient in accordance with ASC 820.

At December 31, 2023 and December 31, 2022, Park had Partnerships Investments with a NAV of $ 27.5 million and $ 24.4 million, respectively.

At December 31, 2023 and December 31, 2022, Park had $ 18.4 million and $ 20.3 million in unfunded commitments related to these Partnership Investments.

At December 31, 2024 and December 31, 2023, Park had Partnership Investments with a NAV of $ 32.6 million and $ 27.5 million, respectively.

At December 31, 2024 and December 31, 2023, Park had $ 17.6 million and $ 18.4 million in unfunded

commitments related to these Partnership Investments.

For the years ended December 31, 2024, 2023 and 2022, Park recognized income of $ 0.5 million, $ 0.4 million and $ 2.4 million, respectively, related to these Partnership Investments.

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Time deposits $ 641,615 $ — $ 641,180 $ — $ 641,180

Brokered deposits and Bid Ohio CDs 164,985 — 165,059 — 165,059

Other 1,261 1,261 — — 1,261

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Park 1,045,593 12.79 % 367,986 4.50 % N/A N/A

Segment Information

Park's chief operating decision maker is Park's Chairman and Chief Executive Officer.

While the chief decision maker monitors the operating results of its lines of business, operations are managed and financial performance is evaluated on a consolidated basis.

Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

The segment is determined by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products, and services are similar.

The chief operating decision maker will evaluate the financial performance of Park's business components such as by evaluating interest income, interest expense, other revenue streams, significant expenses, and budget to actual results in assessing Park's segment and in the determination of allocation resources.

The chief operating

decision maker uses consolidated net income to benchmark Park against its peers.

The benchmarking analysis coupled with monitoring of budget to actual results are used in assessment of performance and in establishing compensation.

Loans, investments, deposits, and fiduciary income provide the revenues in the banking operation.

Interest expense, provisions for credit losses, and payroll/benefits provide the significant expenses in the banking operation.

All operations are domestic.

Accounting policies for Park's reportable segment are the same as described in Note 1 - Summary of Significant Accounting Policies.

Segment performance is evaluated using consolidated net income.

Information reported internally for performance assessment by the chief operating decision maker follows, inclusive of reconciliations of significant segment totals to the financial statements.

Banking Segment

(in thousands) 2024 2023 2022

Interest Income $ 522,965 $ 471,670 $ 378,247

Reconciliation of Revenue

Other revenues $ 122,588 $ 92,634 $ 135,935

Total consolidated revenues $ 645,553 $ 564,304 $ 514,182

Interest expense $ 124,946 $ 98,557 $ 31,188

Segment net interest income and noninterest income $ 520,607 $ 465,747 $ 482,994

Provision for credit losses 14,543 2,904 4,557

Salaries 147,311 139,237 133,299

Employee benefits 41,724 42,264 40,490

Occupancy expense 12,816 13,114 13,866

Furniture and equipment expense 9,983 12,233 11,901

Data processing fees 40,564 37,637 32,627

Professional fees and services 31,146 29,173 30,837

Marketing 6,318 5,471 5,335

Insurance 6,735 7,640 5,413

Communication 4,097 4,210 3,891

State tax expense 4,500 4,657 4,585

Amortization of intangible assets 1,215 1,323 1,487

Foundation contributions 2,000 1,000 4,000

Miscellaneous 12,930 11,280 10,247

Income taxes 33,305 26,870 32,108

Segment net income/consolidated net income $ 151,420 $ 126,734 $ 148,351

(in thousands) 2024 2023 2022

Other segment disclosures

Interest income 522,965 471,670 378,247

Interest expense 124,946 98,557 31,188

Depreciation 12,192 14,015 13,819

Amortization 1,215 1,323 1,487

Other significant noncash items:

Provision for credit losses 14,543 2,904 4,557

Segment assets 9,805,350 9,836,453 9,854,993

Reconciliation of assets

Total assets for reportable segments $ 9,805,350 9,836,453 9,854,993

Other assets — — —

Total consolidated assets $ 9,805,350 9,836,453 9,854,993

Parent Company Statements

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Share-based compensation expense 6,446 6,787 5,879

Loss (gain) on equity securities, net 151 207 ( 1,218 )

Decrease (increase) in other assets 828 ( 2,514 ) 8,249

(Gain) loss on equity securities, net ( 1,872 ) 151 207

(Increase) decrease in other assets ( 23 ) 828 ( 2,514 )

(Decrease) increase in other liabilities ( 1,770 ) ( 2,752 ) 4,896

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Other, net ( 600 ) ( 31 ) 144

Net cash (used in) provided by investing activities ( 856 ) ( 9,021 ) 3,266

Net cash used in investing activities ( 10,813 ) ( 856 ) ( 9,021 )

Financing activities:

Cash dividends paid ( 77,496 ) ( 68,951 ) ( 76,604 )

Repayment of long-term debt — — ( 32,500 )

Repurchase of common shares to be held as treasury shares — ( 23,017 ) —

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Net cash used in financing activities ( 80,612 ) ( 94,812 ) ( 79,367 )

Increase (decrease) in cash 7,687 30,933 ( 5,283 )

(Decrease) increase in cash ( 4,343 ) 7,687 30,933

Cash at beginning of year 282,151 274,464 243,531

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ATM fees 1,840 2,178 2,273

(Loss) gain on the sale of OREO, net ( 3 ) 5,611 ( 4 )

Pension settlement gain (2)

Gain (loss) on the sale of OREO, net 42 ( 3 ) 5,611

OREO valuation markup 30 60 12,039

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(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $ 3.7 million, $ 9.3 million, and $ 10.5 million for the years ended December 31, 2023, 2022, and 2021, respectively, all of which are within the scope of ASC 606 .

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, gains/losses on asset sales, and miscellaneous bank fees totaling $ 5.8 million, $ 3.7 million, and $ 9.3 million for the years ended December 31, 2024, 2023, and 2022, respectively, all of which are within the scope of ASC 606 .

A description of Park's material revenue streams accounted for under ASC 606 follows:

Income from fiduciary activities (gross) :

Park earns fiduciary fee income and investment brokerage fees from its contracts with trust customers for various fiduciary and investment-related services.

Park earns fiduciary fee income and investment brokerage fees from its contracts with wealth management customers for various fiduciary and investment-related services.

These fees are earned over time as the Company provides the contracted monthly and quarterly services and are generally assessed based on the market value of the trust assets.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data