What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-02-23 compared with 2025-02-24 · 263 added, 251 removed, 962 unchanged (35% of the section changed)

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Items Impacting Comparability of Period Results

From time to time, revenue, expenses and/or taxes are impacted by items judged by management of Park to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by management of Park at that time to be infrequent or short-term in nature.

From time to time, revenue, expenses and/or taxes are impacted by items judged by management of Park to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their impact is believed by management of Park at that time to be infrequent or short-term in nature.

Most often, these items impacting comparability of period results are due to merger and acquisition activities and revenue and expenses related to former Vision Bank loan relationships.

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Even though certain revenue and expense items are naturally subject to more volatility than others due to changes in market and economic environment conditions, as a general rule volatility alone does not result in the inclusion of an item as one impacting comparability of period results.

For example, changes in the provision for / (recovery of) credit losses (aside from those related to former Vision Bank loan relationships), gains (losses) on equity securities, net, and asset valuation adjustments, reflect ordinary banking activities and are, therefore, typically excluded from consideration as items impacting comparability of period results.

For example, changes in the provision for credit losses (aside from those related to former Vision Bank loan relationships), gains (losses) on equity securities, net, and asset valuation adjustments, reflect ordinary banking activities and are, therefore, typically excluded from consideration as items impacting comparability of period results.

Management believes the disclosure of items impacting comparability of period results provides a better understanding of Park's performance and trends and allows management to ascertain which of such items, if any, to include or exclude from an analysis of Park's performance;

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Management has included in this Management's Discussion and Analysis of Financial Condition and Results of Operation, information relating to the return on average tangible equity, the return on average tangible assets, the tangible equity to tangible assets ratio, and pre-tax, pre-provision net income for the years ended December 31, 2025, December 31, 2024, and December 31, 2023.

For the purpose of calculating the return on average tangible equity, a non-GAAP financial measure, net income for each period is divided by average tangible equity during the period.

For the purpose of calculating the return on average tangible equity, a non-U.S.

GAAP financial measure, net income for each period is divided by average tangible equity during the period.

Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period.

For the purpose of calculating the return on average tangible assets, a non-GAAP financial measure, net income for each period is divided by average tangible assets during the period.

For the purpose of calculating the return on average tangible assets, a non-U.S.

GAAP financial measure, net income for each period is divided by average tangible assets during the period.

Average tangible assets equals average assets during the applicable period less average goodwill and other intangible assets during the applicable period.

For the purpose of calculating the tangible equity to tangible assets ratio, a non-GAAP financial measure, tangible equity is divided by tangible assets.

For the purpose of calculating the tangible equity to tangible assets ratio, a non-U.S.

GAAP financial measure, tangible equity is divided by tangible assets.

Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at period end.

Tangible assets equal total assets less goodwill and other intangible assets, in each case at period end.

For the purpose of calculating pre-tax, pre-provision net income, a non-GAAP financial measure, income taxes and the provision for credit losses are added back to net income, in each case during the applicable period.

For the purpose of calculating pre-tax, pre-provision net income, a non-U.S.

GAAP financial measure, income taxes and the provision for credit losses are added back to net income, in each case during the applicable period.

Management believes that the disclosure of the return on average tangible equity, the return on average tangible assets, the tangible equity to tangible assets ratio, and pre-tax, pre-provision net income presents additional information to the reader of the consolidated financial statements, which, when read in conjunction with the consolidated financial statements prepared in accordance with U.S.

GAAP, assists in analyzing Park's operating performance, ensures comparability of operating

performance from period to period, and facilitates comparisons with the performance of Park's peer financial holding companies and bank holding companies, while eliminating certain non-operational effects of acquisitions.

GAAP, assists in analyzing Park's operating performance, ensures comparability of operating performance from period to period, and facilitates comparisons with the performance of Park's peer financial holding

companies and bank holding companies, while eliminating certain non-operational effects of acquisitions.

In the tables included within the "ANALYSIS OF EARNINGS - Items Impacting Comparability" section of this Management's Discussion and Analysis of Financial Condition and Results of Operations, Park has provided a reconciliation of average tangible equity from average shareholders' equity, average tangible assets from average assets, tangible equity from total shareholders' equity, tangible assets from total assets, and pre-tax, pre-provision net income from net income solely for the purpose of complying with SEC Regulation G and not as an indication that the return on average tangible equity, the return on average tangible assets, the tangible equity to tangible assets ratio, and pre-tax, pre-provision net income are substitutes for the return on average equity, the return on average assets, the total shareholders' equity to total assets ratio, and net income, respectively, as determined in accordance with U.S.

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Net income for the year ended December 31, 2025 of $180.1 million represented a $28.7 million, or 18.9% increase compared to $151.4 million for the year ended December 31, 2024.

Net income for the year ended December 31, 2023 of $126.7 million represented a $21.6 million, or 14.6%, decrease compared to $148.4 million for the year ended December 31, 2022.

Net income for the year ended December 31, 2024 of $151.4 million represented a $24.7 million, or 19.5%, increase compared to $126.7 million for the year ended December 31, 2023.

Pre-tax, pre-provision net income (non-U.S.

GAAP) for the year ended December 31, 2025 of $232.8 million represented a $33.5 million, or 16.8%, increase compared to $199.3 million for the year ended December 31, 2024.

Pre-tax, pre-provision net income for the year ended December 31, 2023 of $156.5 million represented a $28.5 million, or 15.4%, decrease compared to $185.0 million for the year ended December 31, 2022.

Highlights from the years ended December 31, 2024, 2023, and 2022 included:

• 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 and retired participants.

There was no pension settlement gain recognized during the years ended December 31, 2023 and December 31, 2022.

• Park completed a series of debt security sale trades in November 2023, selling an aggregate of $291.0 million in available-for-sale ("AFS") debt securities with a net pre-tax loss of $7.9 million for the year ended December 31, 2023.

Among the various objectives of the trade, the liquidity generated from the sale was used to reduce borrowing needs

and improve the overall net interest margin.

A net loss on sale of debt securities of $526,000 was recognized during the year ended December 31, 2024.

No gain or loss on the sale of debt securities was recorded in the year ended December 31, 2022.

• 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.

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

• 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.

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

• During the years ended December 31, 2024, 2023, and 2022, Park incurred $215,000, $100,000 and $1.8 million, respectively, in direct expenses related to the collection of payments on former Vision Bank loan relationships.

• During the year ended December 31, 2024, Park contributed $2.0 million to its charitable foundation, compared to $1.0 million for the year ended December 31, 2023 and $4.0 million for the year ended December 31, 2022.

• Park's loans outstanding at December 31, 2024 increased 4.6% compared to December 31, 2023.

Park's loans outstanding at December 31, 2023 increased 4.7% compared to December 31, 2022.

Pre-tax, pre-provision net income (non-U.S.

GAAP) for the year ended December 31, 2024 of $199.3 million represented a $42.8 million, or 27.3%, increase compared to $156.5 million for the year ended December 31, 2023.

Net income for each of the years ended December 31, 2025, 2024 and 2023, included several items of income and expense that impacted comparability of period results.

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Dividends declared as a percentage of net income was 50%, 51% and 54% for 2025, 2024 and 2023, respectively.

Management targets a dividend payout ratio of 50% each year.

The quarterly cash dividend on Park's common shares was $1.06 per share for the first, second and third quarters of 2024, and $1.56 per share for the fourth quarter of 2024.

The fourth quarter of 2024 included a one-time special cash dividend of $0.50 per share.

The quarterly cash dividend on Park's common shares was $1.05 per share for each of the quarters of 2023.

The quarterly cash dividend on Park's common shares was $1.04 per share for the first, second and third quarters of 2022, and $1.54 per share for the fourth quarter of 2022.

The fourth quarter of 2022 included a one-time special cash dividend of $0.50 per share.

Park has historically targeted a dividend payout ratio of 50% each year.

The quarterly cash dividend on Park's common shares was $1.07 per share for the first, second, third and fourth quarters of 2025.

Additionally, in the fourth quarter of 2025 there was a special cash dividend of $1.25 per share.

The quarterly cash dividend on Park's common shares was $1.06 per share for the first, second, third, and fourth quarters of 2024.

Additionally, in fourth quarter of 2024 there was a special cash dividend of $0.50 per share.

The quarterly cash dividend on Park's common shares was $1.05 per share for each of the quarters of 2023 and there was no special dividend in 2023.

Please see the discussion of limitations on Park's ability to pay dividends in the section captioned "Supervision and Regulation of Park and its Subsidiaries – Limits on Dividends and Other Payments" in "ITEM 1.

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The adverse scenario assumes among other things that:

(1) Tensions with China and Taiwan increase and China briefly interrupts trade through the Taiwan Strait and the Russian invasion lasts longer than expected.

Worries grow that the Hamas-Israel conflict will lead to a wider conflict.

(2) Due to continuing concerns about rising inflation, the Federal Reserve raises the federal funds rate.

However, it resumes easing in Q3 2025 as a downturn persists.

(1) Worries that the Israel-Hamas conflict will widen and Russia’s invasion of the Ukraine will persist longer than expected.

Risk grows that China may block the Taiwan Strait, causing business and consumer confidence to decline.

Retaliatory tariffs reduce US exports and lead to a global downturn.

(2) The combination of a recession and rising inflation causes the Federal Reserve to lower federal funds rates in Q1 2026 but only slightly below baseline for a couple of quarters.

As a recession persists and inflation subsides, the Federal Reserve subsequently reduces the federal funds rate more significantly.

(3) Europe goes into a recession as increased tariffs lower exports.

Populism in Europe rises, raising uncertainties about longevity of the Euro and causes financial stress to highly indebted nations, especially Italy.

(4) Impacts of Trump tariffs and deportations are significantly worse than expected.

Tariffs will be levied on China, Canada, Mexico and Europe and the tariff rate will increase more than in the baseline forecast before rolling back in 2026.

Retaliatory tariffs reduce US exports and lead to a global turndown.

Tax revenues are lower than in the baseline creating a higher deficit.

(5) Recession in Q1 2025 which lasts through Q3 2025.

Real GDP declines by 2.6%.

The unemployment rate rises to a peak of 8.3% in Q1 2026.

The stock market falls 35% from Q1 2025 to Q3 2025.

The adverse scenario forecasts Ohio unemployment for the next twelve months to range from 6.6% to 9.5%.

Excluding consideration of qualitative adjustments, this sensitivity analysis would result in a hypothetical increase in Park's ACL of $27.5 million as of December 31, 2024 if only the adverse scenario was used.

Populism in Europe rises, raising uncertainties about longevity of the Euro zone and causes financial stress to highly indebted nations, especially Italy.

These developments further lower US exports and corporate earnings of foreign subsidiaries of US companies.

(4) Impacts of tariffs and deportations are significantly worse than expected.

Tariff rate rises from about 19% and it remains there through the end of 2028.

Retaliatory tariffs reduce US exports and lead to global turndown.

Tax revenues are lower than in the baseline creating a higher deficit and concerns about national debt level raise uncertainty about the course of tax policy.

Full extensions of the Tax Cuts and Jobs Act personal provisions are passed as well as increased state/local tax deductions, certain business tax provisions, and other tax credits/deductions do not expire.

Growth in Medicaid funding is reduced and foreign aid funding remains capped.

Defense and immigration spending will continue to rise.

(5) Recession Q1 2026 and lasts through Q3 2026 and real GDP declines by 2.6%.

Unemployment rate rises to a peak of 8.4% Q1 2027.

Stock market falls 35% from Q1 2026 to Q3 2026.

Excluding consideration of qualitative adjustments, this sensitivity analysis would result in a hypothetical increase in Park's ACL of $30.0 million as of December 31, 2025 if only the

adverse scenario was used.

Excluding consideration of qualitative adjustments, a corresponding $30.0 million decrease in Park's ACL would occur in a hypothetical scenario if only the baseline (most likely) scenario was used.

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ABOUT OUR BUSINESS

Through our national bank subsidiary, 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 our national bank subsidiary, PNB, Park is engaged in a general commercial banking and trust and wealth management business, primarily in Ohio, Kentucky, North Carolina, South Carolina, and, as of February 1, 2026, Tennessee, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies.

Management believes there are a significant number of consumers and businesses that seek long-term relationships with community-based financial institutions of quality and strength.

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("Scope Aircraft Finance")) and a network of 107 automated teller machines in 24 Ohio counties, five North Carolina counties, four South Carolina counties and one Kentucky county.

SEPH and Guardian each operated one administrative office, located in Newark, Ohio.

SEPH operated one administrative office, located in Newark, Ohio.

SOURCE OF FUNDS

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These deposits consist of non-interest bearing and interest bearing deposits.

Average total deposits were $8,260 million in 2024, compared to $8,360 million in 2023 and $8,450 million in 2022.

Average total deposits were $8,462 million in 2025, compared to $8,260 million in 2024 and compared to $8,360 million in 2023.

The average interest rate paid on interest bearing deposits was 1.71% in 2025, 1.97% in 2024 and 1.52% in 2023.

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Brokered deposits and Bid Ohio CDs 17,000 176,486 (159,486)

Other 1,265 1,261 4

Total $ 8,243,713 $ 8,143,526 $ 100,187

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During the years ended December 31, 2025 and 2024, Park decided to continue participation in a program to transfer deposits off-balance sheet in order to manage growth of the balance sheet.

Park is able to increase or decrease the amount of deposit

balances transferred off balance sheet based on its balance sheet management strategies and liquidity needs.

Park is able to increase or decrease the amount of deposit balances transferred off balance sheet based on its balance sheet management strategies and liquidity needs.

At December 31, 2025 and December 31, 2024, Park had $105.3 million and $115.2 million, respectively, in off balance sheet deposits.

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During the year ended December 31, 2025, total deposits including off balance sheet deposits increased by $90.3 million, or 1.1%.

This increase consisted of a $134.5 million increase in total commercial deposits, a $114.0 million increase in off balance sheet deposits and a $11.5 million increase in brokered and bid CD deposits, partially offset by a $45.0 million decrease in total retail deposits.

This increase consisted of a $213.2 million increase in total commercial deposits and a $46.5 million increase in retail deposits, partially offset by a $159.5 million decrease in brokered and bid CD deposits and a $9.9 million decrease in off balance sheet deposits.

The majority of off balance sheet deposits are commercial and thus impact the change in commercial deposits as the deposits are moved on or off the balance sheet.

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These balances fluctuate based on seasonality and the cycle of collection and remittance of tax funds.

Public funds include Bid Ohio CDs.

The following table details the change in public fund deposits.

Public funds include Bid

The following table details the change in public fund deposits held on and off Park's balance sheet.

Table 5 - Public Fund Deposits

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Cost of public fund deposits 1.94 % 2.36 % 2.24 % 0.60 % 0.11 %

Cost of total interest bearing deposits 1.71 % 1.97 % 1.52 % 0.39 % 0.12 %

As of December 31, 2025, Park had approximately $1.5 billion of uninsured deposits, which was 18.5% of total deposits.

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As of December 31, 2024, Park had approximately $1.4 billion of uninsured deposits, which was 17.6% of total deposits.

Uninsured deposits of $1.3 billion included $288.2 million of deposits which were over $250,000 but were fully collateralized by Park's investment securities portfolio.

Uninsured deposits of $1.4 billion included $395.4 million of deposits that were over $250,000, but were fully collateralized by Park's investment securities portfolio.

The uninsured amounts, those in excess of the $250,000 FDIC insurance limit, are estimates based on the methodologies used for the Corporation's regulatory reporting requirements.

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Subordinated Notes:

Park assumed, with the 2007 acquisition of Vision's parent holding company, $15.5 million of floating rate junior subordinated notes.

Park assumed, with the 2007 acquisition of Vision Bank's parent holding company, $15.5 million of floating rate junior subordinated notes.

The $15.5 million of junior subordinated notes were purchased by Vision Bancshares Trust I ("Trust I") following the issuance of Trust I's $15.0 million of floating rate preferred securities.

The interest rate on these junior subordinated notes adjusts every quarter at 174 basis points above the three-month CME Term SOFR.

The maturity date for the junior subordinated notes is December 30, 2035, and, since December 30, 2010, Park has had the right to prepay the junior subordinated notes, without penalty.

These junior subordinated notes qualify as Tier 1 capital under current Federal Reserve Board guidelines.

The interest rate on these junior subordinated notes adjusted every quarter at 174 basis points above the three-month CME Term SOFR.

The maturity date for the junior subordinated notes was December 30, 2035, and, since December 30, 2010, Park has had the right to prepay the junior subordinated notes, without penalty.

On September 30, 2025, Park redeemed in full, $15.0 million in Trust Preferred Securities at a redemption price in cash equal to 100% of the principal amount of the Trust Preferred Securities, plus accrued and unpaid interest.

On August 20, 2020, Park completed the issuance and sale of $175 million aggregate principal amount of its 4.50% Fixed-to-Floating Rate Subordinated Notes due 2030 (the "Subordinated Notes").

The Subordinated Notes initially bear a fixed interest rate of 4.50% per year, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2021.

Commencing on September 1, 2025, the Subordinated Notes will bear interest at a floating rate per annum equal to the Benchmark rate, which is expected to be Three-Month Term SOFR, plus a spread of 439 basis points for each quarterly interest period during the floating rate period, payable quarterly in arrears;

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

The Corporation 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 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 Subordinated Notes qualify as Tier 2 capital for Park under the Federal Reserve Board's capital adequacy rules.

Beginning on September 1, 2025, Park had the right to redeem the Subordinated Notes, in whole or in part.

On September 1, 2025, Park redeemed in full, $175 million outstanding of the Subordinated Notes at a redemption price in cash equal to 100% of the principal amount of the Notes, plus accrued and unpaid interest.

The repayments were made using available cash on hand and did not involve any refinancing or issuance of new debt.

As of December 31, 2025, Park has no subordinated debt outstanding.

At December 31, 2024, the Subordinated Notes, net of unamortized issuance costs, totaled $189.7 million and qualified as Tier 2 capital for Park under the Federal Reserve Board capital adequacy rules.

In 2025, the average balance of subordinated notes was $128 million, compared to $189 million in 2024 and $189 million in 2023.

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In accordance with U.S.

GAAP, Park reflects any unrealized holding gain or loss on AFS debt securities, any unrealized net holding gain or loss on cash flow hedging derivatives and any change in the funded status of Park's pension plan, in each case, net of income taxes, as accumulated other comprehensive (loss) income which is part of Park’s shareholders’ equity.

The unrealized net holding loss, net of income taxes, on AFS debt securities was $62.9 million at year-end 2024, compared to an unrealized net holding loss, net of income taxes, $67.9 million at year-end 2023 and compared to an unrealized net holding loss, net of income taxes, of $95.7 million at year-end 2022.

GAAP, Park reflects any unrealized holding gain or loss on AFS debt securities and any change in the funded status of Park's pension plan, in each case, net of income taxes, as accumulated other comprehensive (loss) income which is part of Park’s shareholders’ equity.

The unrealized net holding loss, net of income taxes, on AFS debt securities was $32.3 million at year-end 2025, compared to an unrealized net holding loss, net of income taxes, of $62.9 million at year-end 2024 and an unrealized net holding loss, net of income taxes, $67.9 million at year-end 2023.

The unrealized net holding loss on AFS debt securities at December 31, 2025 was impacted by the realization of $1.8 million in losses, net of income taxes, during the year ended December 31, 2025 as the result of the sale of $79.1 million in AFS debt securities.

The unrealized net holding loss on AFS debt securities at December 31, 2024 was impacted by the realization of $415,000 in losses, net of income taxes, during the year ended December 31, 2024 as the result of the sale of $44.6 million in AFS debt securities.

The unrealized net holding loss on AFS debt securities at December 31, 2023 was impacted by the realization of $6.2 million in losses, net of income taxes, during the year ended December 31, 2023 as the result of the sale of $291.0 million in AFS debt securities.

The unrealized net holding loss, net of income taxes, on cash flow hedging derivatives was zero at year-end 2024, year-end 2023 and year-end 2022.

Park's only borrowing cash flow hedging derivative was terminated during 2022.

In accordance with U.S.

GAAP, Park adjusts accumulated other comprehensive (loss) income to recognize the net actuarial gain or loss and prior service cost or credit reflected in the funding status of Park’s pension plan.

GAAP, Park adjusts accumulated other comprehensive (loss) income to recognize the net actuarial gain or loss and prior service cost reflected in the funding status of Park’s pension plan.

See "Note 20 - Benefit Plans" of the Notes to Consolidated Financial Statements included in "ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K for additional information on the accounting for Park’s pension plan.

At year-end 2024, the balance in accumulated other comprehensive loss pertaining to the pension plan was unrealized income of $16.8 million, compared to unrealized income of $1.7 million at December 31, 2023 and compared to an unrealized loss of $6.7 million at December 31, 2022.

At year-end 2025, the balance in accumulated other comprehensive loss pertaining to the pension plan was unrealized income of $19.6 million, compared to unrealized income of $16.8 million at December 31, 2024 and compared to unrealized income of $1.7 million at December 31, 2023.

The net other comprehensive income in 2025 was largely due to a $3.6 million ($2.8 million, net of taxes) net actuarial gain.

The gain was due to asset returns greater than expected and an increase in the discount rate, partially offset by assumption updates fo r a change in the mortality table for lump sum distributions, reflecting updates for the 2025 assumption study, demographic losses and an increase in the interest credit rate.

The net other comprehensive income in 2024 was largely due to a $25.2 million ($19.9 million, net of taxes) net unrealized actuarial gain, partially offset by a $6.1 million ($4.9 million, net of taxes) realized pension settlement gain.

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The gain was due to asset returns greater than expected, partially offset by the impact of demographic losses driven by salary increases greater than assumed and a decrease in the discount rate.

The net other comprehensive loss in 2022 was largely due to $558,000 ($441,000, net of taxes) in prior service cost, as a result of plan amendments, and a $551,000 ($435,000, net of taxes) net actuarial loss.

INVESTMENT OF FUNDS

Average loans were $7,924 million in 2025, compared to $7,627 million in 2024 and $7,222 million in 2023.

The average yield on average loan balances was 6.14% in 2024, compared to 5.55% in 2023 and 4.65% in 2022.

The average yield on loans was 6.33% in 2025, compared to 6.14% in 2024 and 5.55% in 2023.

Approximately 46% of Park’s loan balances mature or reprice within one year (see Table 32).

The average yield on average loan balances for each quarter of 2024 was 6.21% for the fourth quarter, 6.24% for the third quarter, 6.13% for the second quarter and 5.99% for the first quarter.

In addition, loan interest income included $1.2 million, $633,000 and $1.8 million, respectively, of the accretion of loan purchase accounting adjustments related to the acquisitions of NewDominion and Carolina Alliance.

Loan interest income for 2023 and 2022 included interest and fee income related to PPP loans of $69,000 and $3.1 million, respectively.

The average yield on loans for each quarter of 2025 was 6.34% for the fourth quarter, 6.34% for the third quarter, 6.37% for the second quarter and 6.26% for the first quarter.

Loan interest income for 2025, 2024, and 2023 included $2.0 million, $54,000 and $631,000, respectively, related to payments received on certain SEPH nonaccrual loan relationships, some of which are participated with PNB.

In addition, loan interest income included $668,000, $1.2 million and $633,000, respectively, of the accretion of loan purchase accounting adjustments related to the acquisitions of NewDominion and Carolina Alliance.

Loan interest income for 2023 included interest and fee income related to PPP loans of $69,000.

Excluding the impact of the purchase accounting accretion, SEPH income, and PPP income, the average yield on loans was 6.29%, 6.13% and 5.53%, for the years ended December 31, 2025, 2024, and 2023.

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On a combined basis, year-end commercial, financial and agricultural loans, construction real estate loans and commercial real estate loans increased by $143.7 million, or 3.9%, in 2025.

The increase in 2024 was due to an increase in commercial real estate loans of $118.3 million and an increase in construction real estate loans of $107.5 million, which were partially offset by an decrease in commercial, financial and agricultural loans of $26.1 million.

On a combined basis, year-end commercial, financial and agricultural loans, construction real estate loans and commercial real estate loans increased $56.3 million, or 1.6%, in 2023.

The increase in 2023 was due to an increase in commercial real estate of $81.9 million, partially offset by a decrease of $20.3 million in construction real estate and a $5.3 million decrease in commercial, financial and agricultural loans.

Consumer loans decreased by $35.6 million, or 1.8% in 2024 and increased by $41.0 million, or 2.1%, in 2023.

The change in consumer loans in 2024 and 2023 was primarily due to fluctuations in automobile lending in Ohio.

The increase in 2025 was due to an increase in commercial real estate loans of $214.3 million, which were partially offset by an decrease in commercial, financial and agricultural loans of $57.4 million and a decrease in construction real estate loans of $13.2 million.

On a combined basis, year-end commercial, financial and agricultural loans, construction real estate loans and commercial real estate loans increased by $199.8 million, or 5.7%, in 2024.

The increase in 2024 was due to an increase in commercial real estate loans of $118.3 million and an increase in construction real estate loans of $107.5 million, which were partially offset by a decrease in commercial, financial and agricultural loans of $26.1 million.

Consumer loans decreased by $87.1 million, or 4.6% in 2025 and decreased by $35.6 million, or 1.8% in 2024.

The change in consumer loans in 2025 and 2024 was primarily due to decreases in automobile lending in Ohio due to strategic balance sheet management.

Residential real estate loans increased by $174.9 million, or 8.0% in 2025 and increased by $170.9 million, or 8.4% in 2024.

The increase in 2024 was due to an increase in mortgage loans secured by residential real estate of $106.7 million, an increase in commercial loans secured by residential real estate of $35.0 million, an increase in home equity loans secured by residential real estate of $29.1 million and an increase in installment loans secured by residential real estate of $109,000.

The increase in 2023 was due to an increase in mortgage loans secured by residential real estate of $164.4 million, an increase in commercial loans secured by residential real estate of $59.2 million, an increase in home equity loans secured by residential real estate of $7.2 million and an increase in installment loans secured by residential real estate of $1.8 million.

The increase in 2025 was due to an increase in commercial loans secured by residential real estate of $108.3 million, an increase in home equity loans secured by residential real estate of $37.6 million and an increase in mortgage loans secured by residential real estate of $29.1 million.

The increase in 2024 was due to an increase in mortgage loans secured by residential

real estate of $106.7 million, an increase in commercial loans secured by residential real estate of $35.0 million and an increase in home equity loans secured by residential real estate of $29.1 million.

Leases increased by $2.5 million to $32.4 million in 2025 and increased by $5.8 million to $29.8 million in 2024.

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Proceeds from repayments, redemptions and maturities of debt securities were $355 million in 2025, $300 million in 2024 and $145 million in 2023.

During 2025, Park sold certain AFS debt securities with a book value of $79.1 million at a gross loss of $2.3 million.

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 in 2022.

For the years ended December 31, 2025, 2024, and 2023, the average tax-equivalent yield on the total investment portfolio was 3.10%, 3.74% and 3.73%, respectively.

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Total other investment securities were $113 million at December 31, 2025, $104 million at December 31, 2024 and $96 million at December 31, 2023.

There were $9.2 million in FHLB stock

purchases in 2024, $18.2 million in FHLB stock purchases in 2023 and no FHLB stock purchases in 2022.

Proceeds from the redemption/repurchase of FHLB stock were $18.4 million in 2024, compared to $11.7 million in 2023 and compared to $2.2 million in 2022.

There were $494,000 in FHLB stock purchases in 2025, $9.2 million in FHLB stock purchases in 2024 and $18.2 million in FHLB stock purchases in 2023.

Proceeds from the redemption/repurchase of FHLB stock were $1.1 million in 2025, compared to $18.4 million in 2024, and $11.7 million in 2023.

No shares of FRB stock were purchased or sold in any of the years ended December 31, 2025, 2024, or 2023.

Management purchased equity securities totaling $5.8 million in 2025, $10.2 million in 2024 and $2.2 million in 2023.

During the years ended December 31, 2024, 2023, and 2022.

Park entered into partnership agreements with commitments totaling $2.5 million, $2.7 million and $16.3 million, respectively.

During the years ended December 31, 2025, 2024, and 2023, Park entered into partnership agreements with commitments totaling $157,000, $2.5 million and $2.7 million, respectively.

Funding of limited partnerships totaled $8.1 million, $7.5 million and $5.6 million during the years ended December 31, 2025, 2024, and 2023, respectively.

"Gain on equity securities, net" on Park's Consolidated Statements of Income were $3.1 million, $971,000 and $3.0 million for the years ended December 31, 2024, 2023 and 2022, respectively.

These gains on equity securities were made up of gains (losses) on equity investments carried at fair value as well as gains (losses) on equity investments carried at modified cost and gains (losses) on partnership investments carried at NAV.

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 were recorded within "Gain on equity securities, net" on Park's 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 Park's Consolidated Statements of Income.

"Gain on equity securities, net" on Park's Consolidated Statements of Income were $4.7 million, $3.1 million and $971,000 for the years ended December 31, 2025, 2024 and 2023, respectively.

These gains on equity securities were made up of gains (losses) on equity investments carried at fair value or modified cost as well as gains (losses) on equity investments carried at modified cost and gains (losses) on partnership investments carried at NAV.

For the years ended December 31, 2025, 2024 and 2023, $3.5 million, $2.6 million and $600,000, respectively, of gains on equity investments carried at fair value or modified cost were recorded within "Gain on equity securities, net" on Park's Consolidated Statements of Income.

For the years ended December 31, 2025, 2024 and 2023, $1.2 million, $468,000 and $371,000, respectively, of gains on equity investments carried at NAV were recorded within "Gain on equity securities, net" on Park's Consolidated Statements of Income.

The average maturity of the investment portfolio would lengthen if long-term interest rates were to increase as principal repayments from mortgage-backed securities and CMOs would decrease and callable securities would price to their maturity dates.

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Corporate debt securities $ — $ 1,956 $ 18,782 $ — $ 20,738

Obligations of U.S.

Government sponsored entities 249 — — — 249

Obligations of states and political subdivisions — — 98,360 113,463 211,823

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Time deposits 767,751 21,405 2.79 % 690,938 21,531 3.12 % 572,918 10,699 1.87 %

Brokered/bid CD deposits 160,074 8,063 5.04 % 35,952 1,978 5.50 % — — N.M.

Brokered/bid CD deposits 45,441 1,954 4.30 % 160,074 8,063 5.04 % 35,952 1,978 5.50 %

Total interest bearing deposits 5,833,360 99,780 1.71 % 5,696,185 112,383 1.97 % 5,546,015 84,453 1.52 %

Federal funds purchased 123 7 5.55 % 26 1 5.66 % 68 1 0.95 %

Repurchase agreements 80,207 1,156 1.44 % 95,680 1,746 1.82 % 146,388 2,583 1.76 %

Short-term borrowings 24,794 1,382 5.58 % 36,633 2,137 5.83 % 7,195 260 3.62 %

Other short-term borrowings 164 8 4.62 % 24,917 1,389 5.58 % 36,659 2,138 5.83 %

Subordinated notes 128,049 6,285 4.91 % 189,399 9,428 4.98 % 188,908 9,383 4.97 %

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Net yield on interest earning assets (net interest margin) 4.75 % 4.41 % 4.11 %

(1) Loan income includes net loan-related fee (expense) income, purchase accounting accretion and origination expense in the aggregate amount of $(11.6) million in 2024, $(12.1) million in 2023 and $(5.5) million in 2022.

Loan income also includes the effects of taxable equivalent adjustments using a 21%

federal corporate income tax rate in 2024, 2023 and 2022.

The taxable equivalent adjustments were $964,000 in 2024, $811,000 in 2023 and $627,000 in 2022.

(1) Loan income includes net loan-related origination fee (expense) income, purchase accounting accretion and origination expense in the aggregate amount of $(11.1) million in 2025, $(11.6) million in 2024 and $(12.1) million in 2023.

Loan income also includes the effects of taxable equivalent adjustments

using a 21% federal corporate income tax rate in 2025, 2024 and 2023.

The taxable equivalent adjustments were $1.1 million in 2025, $964,000 in 2024 and $811,000 in 2023.

(2) For the purpose of the computation for loans, nonaccrual loans are included in the daily average loans outstanding.

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The taxable equivalent adjustments were $1.5 million in 2025, $1.5 million in 2024 and $2.9 million in 2023.

Average interest earning assets for 2025 increased $185 million, or 2.0% to $9,271 million, compared to $9,086 million for 2024.

The increase was largely due to a $297 million increase in average loans and a $186 million increase in average money markets, partially offset by a $299 million decrease in average investment securities.

Average interest earning assets for 2024 decreased $86 million, or 0.9% to $9,086 million, compared to $9,172 million for 2023.

The decrease was largely due to a $486 million decrease in average investment securities and a $5 million decrease in average money market instruments, partially offset by a $405 increase in average loans.

Average interest earning assets for 2023 decreased by $55 million, or 0.6%, to $9,172 million, compared to $9,227 million for 2022.

The average yield on interest earning assets increased by 12 basis points to 5.90% for 2025, compared to 5.78% for 2024 and 5.18% for 2023.

Loan interest income for 2023 and 2022 included interest and fee income related to PPP loans of $69,000 and $3.1 million, respectively.

Loan interest income for 2023 included interest and fee income related to PPP loans of $69,000.

Excluding the impact of the purchase accounting accretion, SEPH income, and PPP income, the average yield on loans was 6.29%, 6.13% and 5.53%, for the years ended December 31, 2025, 2024, and 2023.

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Average interest bearing liabilities for 2024 increased by $88 million, or 1.5%, to $6,006 million, compared to $5,918 million for 2023.

The average cost of interest bearing liabilities increased by 41 basis points to 2.08% for 2024, compared to 1.67% for 2023 and 0.54% for 2022.

For the most recent interest rate cycle, peak through-the-cycle beta on interest bearing deposits (measured as the change from December 31, 2021 to September 30, 2024 compared to the peak change in the Fed Funds target rate) totaled 38%, while the peak through-the-cycle betas on total deposits and total cost of funds were both 26%.

During this same time period, betas on loans and total interest earning assets were 32% and 38%, respectively.

The average cost of interest bearing liabilities decreased by 31 basis points to 1.77% for 2025, compared to 2.08% for 2024 and 1.67% for 2023.

The table below shows for the years ended December 31, 2025, 2024, and 2023, the average balance and tax equivalent yield by type of loan.

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(1) Commercial loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate in 2025, 2024 and 2023.

The taxable equivalent adjustments were $964,000 in 2024, $811,000 in 2023 and $627,000 in 2022.

Loan interest income for 2024, 2023, and 2022 included $54,000, $631,000 and $3.7 million, respectively, related to payments received on certain SEPH nonaccrual loan relationships, some of which are participated with PNB, as well as $1.2 million, $633,000 and $1.8 million of purchase accounting accretion for 2024, 2023 and 2022, respectively.

Interest income for 2023

and 2022 included interest and fee income related to PPP loans of $69,000 and $3.1 million, respectively.

The taxable equivalent adjustments were $1.1 million in 2025, $964,000 in 2024 and $811,000 in 2023.

Loan interest income for 2025, 2024 and 2023 included $2.0 million, $54,000 and $631,000, respectively, related to payments received on certain SEPH nonaccrual loan relationships, some of which are participated with PNB, as well as $668,000, $1.2 million and $633,000 of purchase accounting accretion for 2025, 2024 and 2023, respectively.

Interest income for 2023 included interest and fee income related to PPP loans of $69,000.

Below is a summary of the impact of these items on the tax equivalent yield of loans.

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Excluding the impact of these items, the average tax equivalent yield on real estate loans was 5.07% and 4.38%, respectively.

There was no purchase accounting accretion included in real estate loan interest income for 2025.

• The amount of interest related to PPP income, SEPH nonaccrual loan relationships and purchase accounting accretion included in commercial loan interest income for 2025, 2024 and 2023 was $2.0 million, $935,000 and $1.2 million, respectively.

11 unchanged sentences

Time deposits 767,751 2.79 % 690,938 3.12 % 572,918 1.87 %

Brokered/bid CD deposits 160,074 5.04 % 35,952 5.50 % — N.M.

Brokered/bid CD deposits 45,441 4.30 % 160,074 5.04 % 35,952 5.50 %

Total interest bearing deposits $ 5,833,360 1.71 % $ 5,696,185 1.97 % $ 5,546,015 1.52 %

39 unchanged sentences

Pension settlement gain — 6,148 —

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

OREO valuation markup 30 60 12,039

Loss on sale of debt securities, net (2,250) (526) (7,875)

3 unchanged sentences

Total other income $ 119,881 $ 122,588 $ 92,634

Income from fiduciary activities increased by $7.0 million, or 19.8%, to $42.5 million, compared to $35.5 million in 2023.

Income from fiduciary activities increased by $3.3 million, or 7.7%, to $45.8 million in 2025, compared to $42.5 million in 2024.

The $42.5 million in 2024 was an increase of $7.0 million, or 19.8%, compared to $35.5 million in 2023.

1 unchanged sentence

The average market value of the wealth management assets managed by PNB was $9.07 billion in 2025, compared to $8.58 billion in 2024 and $7.69 billion in 2023.

The increase in fiduciary fee income in 2025 was largely due to an increase in the market value of assets under management.

The increase in fiduciary fee income in 2024 was largely due to an increase in the market value of assets under management as well as updates to the fee structure.

The increase in fiduciary fee income in 2023 was primarily related to an increase in wealth management assets due to improvements in equity market values and new wealth management accounts.

Service charges on deposit accounts increased $556,000, or 6.6%, to $9.0 million in 2024, compared to $8.4 million in 2023.

The $8.4 million in 2023 was a decrease of $1.6 million, or 16.3%, compared to $10.1 million in 2022.

The increase in 2024 was related to increases in service charges on demand deposit accounts, partially offset by decreases in non-sufficient funds (NSF) fee income.

The decrease in 2023 was related to decreases in non-sufficient funds (NSF) fee income.

Other service income increased $1.4 million in 2024, or 14.0%, to $11.7 million, compared to $10.3 million in 2023.

The $10.3 million in 2023 was a decrease of $5.0 million, or 32.7%, compared to $15.3 million in 2022.

Service charges on deposit accounts increased $1.1 million, or 11.7%, to $10.1 million in 2025, compared to $9.0 million in 2024.

The $9.0 million in 2024 was an increase of $556,000, or 6.6%, compared to $8.4 million in 2023.

The increases in 2025 and 2024 were related to increases in service charges on demand deposit accounts, partially offset by decreases in non-sufficient funds (NSF) fee income.

Other service income increased $2.7 million, or 23.3%, to $14.5 million in 2025, compared to $11.7 million in 2024.

The $11.7 million in 2024 was an increase of $1.4 million, or 14.0%, compared to $10.3 million in 2023.

The increase in 2025 compared to 2024 was primarily due to an increase in other service income related to mortgage loan originations and commercial related other service income, including a $957,000 increase in fee income related to mortgage loan originations to be sold in the secondary market, a $578,000 increase in mortgage servicing rights income and a $458,000 increase in commercial related other service income.

The increase in 2024 compared to 2023 was primarily due to an increase in other service income related to mortgage loan originations, including a $950,000 increase in fee income related to mortgage loan originations to be sold in the secondary market and a $400,000 increase in mortgage servicing rights income.

The decrease in 2023 compared to 2022 was primarily related to a decrease in other service income related to mortgage loan originations, including a $2.6 million decrease in fee income related to mortgage loan originations to be sold in the secondary market and a $1.7 million decrease in mortgage servicing rights income, partially offset by a $465,000 increase in income related to investor rate locks and loans held for sale.

Park has experienced fluctuations in mortgage loan origination volume resulting in increases and decreases in other service income.

A summary of mortgage loan originations for the years ended December 31, 2024, 2023 and 2022 follows.

Park has experienced increases in mortgage loan origination volume resulting in increases in other service income.

A summary of mortgage loan originations for the years ended December 31, 2025, 2024 and 2023 as follows.

Table 18 - Mortgage Loan Origination Volume

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Debit card fee income, which is generated from debit card transactions, decreased $80,000, or 0.3%, to $25.8 million in 2025, compared to $25.9 million in 2024.

The $26.5 million in 2023 was an increase of $476,000, or 1.8%, compared to $26.0 million in 2022.

The decrease in 2024 was attributable to a decrease in the average blended interchange rate per transaction, which is influenced by various factors, including the average spend per transaction.

The $25.9 million in 2024 was a decrease of $649,000, or 2.4%, compared to $26.5 million in 2023.

The decreases in 2025 and 2024 were attributable to a decrease in the average blended interchange rate per transaction, which is influenced by various factors, including the average spend per transaction.

This decrease was partially offset by continued increases in both the volume of debit card transactions and increases in total sales dollars of debit card transactions.

The increase in 2023 was attributable to continued increases in both the volume of debit card transactions and increases in total sales dollars of debit card transactions.

Debit card transaction volume increased 1.3% in 2024 from 2023.

Total sales dollars of debit card transactions increased 1.4% in 2024 from 2023.

Debit card transaction volume increased 3.4% in 2023 from 2022.

Total sales dollars of debit card transactions increased 2.5% in 2023 from 2022.

Debit card transaction volume increased 0.99% in 2025 from 2024 and increased 1.3% in 2024 from 2023.

Total sales dollars of debit card transactions increased 3.2% in 2025 from 2024 and increased 1.4% in 2024 from 2023.

Park continues to focus on deposit offerings that provide incentives for our customers to use their debit card.

Bank owned life insurance income increased $2.4 million, or 45.6%, to $7.8 million in 2024, compared to $5.3 million in 2023.

The $5.3 million in 2023 was a decrease of $762,000, or 12.5%, compared to $6.1 million in 2022.

The increase in 2024 and the decrease in 2023 was related to death benefit income of $2.0 million recognized in 2024, compared to $325,000 recognized in 2023 and compared to $1.4 million recognized in 2022.

Bank owned life insurance income decreased $1.2 million, or 14.9%, to $6.6 million in 2025 compared to $7.8 million in 2024.

The $7.8 million in 2024 was an increase of $2.4 million, or 45.6%, compared to $5.3 million in 2023.

The decrease in 2025 and the increase in 2024 was related to death benefit income of $463,000 recognized in 2025, compared to $2.0 million recognized in 2024 and $325,000 recognized in 2023.

During 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.

There was no pension settlement gain recognized during 2025 or 2023.

Gain (loss) on the sale of OREO, net, reflected a net gain of $42,000 in 2024, compared to a net loss of $3,000 in 2023, and a net gain of $5.6 million in 2022.

A $5.6 million gain on the sale of OREO, net, was recognized during 2022 and was related to former Vision Bank relationships.

OREO valuation markup income was $30,000, $60,000 and $12.0 million for 2024, 2023 and 2022, respectively.

The $12.0 million OREO valuation markup during 2022 related to the foreclosure of a property collateralizing a former Vision Bank relationship.

This property was subsequently sold during 2022.

During 2025, Park sold certain AFS debt securities with a book value of $79.1 million at a gross loss of $2.3 million.

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

No debt securities were sold in 2022.

During 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".

Other components of net periodic pension benefit income increased $1.7 million, or 22.3%, to $9.3 million in 2024, compared to $7.6 million in 2023.

The $7.6 million in 2023 was a decrease of $4.5 million, or 37.5%, compared to $12.1 million in 2022.

The increase in 2024 was largely due to an increase in the expected return on plan assets, partially offset by a decrease in interest cost.

The decrease in 2023 was largely due a decrease in the expected return on plan assets as well as an increase in interest cost.

Miscellaneous income increased by $2.2 million, or 59.8%, to $5.8 million in 2024, compared to $3.7 million in 2023.

The $3.7 million in 2023 was a decrease of $5.7 million, or 60.8%, compared to $9.3 million in 2022.

During the years ended December 31, 2025, 2024 and 2023, $3.5 million, $2.6 million and $600,000, respectively, of gains on equity investments carried at fair value or modified cost were recorded within "Gain on equity securities, net".

Other components of net periodic pension benefit income increased $113,000, or 1.2%, to $9.4 million in 2025, compared to $9.3 million in 2024.

The $9.3 million in 2024 was an increase of $1.7 million, or 22.3%, compared to $7.6 million in 2023.

The increase in 2025 was largely due to a decrease in interest cost, partially offset by a decrease in the expected return on plan assets.

The increase in 2024 was largely due to an increase in the expected return on plan assets.

Miscellaneous income decreased by $1.9 million, or 32.6%, to $4.0 million in 2025, compared to $5.9 million in 2024.

The $5.9 million in 2024 was an increase of $2.2 million, or 59.3%, compared to $3.7 million in 2023.

The decrease in 2025 was primarily due to a decrease in net gains on the sale and disposal of assets, largely due to the impact of strategic initiatives, and an increase in the loss on sale of repossessed assets.

The increase in 2024 was primarily due to an increase in the net gain on the sale of assets, an increase in filing fee income, an increase in net gains on the sale of repossessed assets and a decrease in OREO devaluations, partially offset by a decline in miscellaneous income that was received in 2023 as the result of an investment fund liquidation.

The decrease in 2023 was primarily due to a decrease in the net gain on the sale of loans and other assets, a decrease due to the write downs on strategic initiatives, and a decrease in fees earned on off-balance sheet deposit accounts.

Other Expense:

22 unchanged sentences

The $147.3 million in 2024 was an increase of $8.1 million, or 5.8%, compared to $139.2 million in 2023.

expenses related to PBRSU and TBRSU awards granted under the 2017 Employee LTIP and a $288,000 decrease in the vacation expense accrual.

The increase in 2023 was due to an increase in salaries expense of $11.1 million and a $909,000 increase in share-based compensation expenses related to PBRSU and TBRSU awards granted under the 2017 Employee LTIP, partially offset by a $4.4 million decrease in additional compensation expense and a $1.6 million decrease in officer incentive compensation expense.

Park had 1,725 full-time equivalent employees at year-end 2024, compared to 1,782 full-time equivalent employees at year-end 2023, and 1,725 full-time equivalent employees at year-end 2022.

Employee benefits expense decreased by $540,000, or 1.3%, to $41.7 million in 2024, compared to $42.3 million in 2023.

The $42.3 million in 2023 was an increase of $1.8 million, or 4.4%, compared to $40.5 million in 2022.

The increase in 2025 was due to an increase of $3.2 million in salaries expense, a $1.5 million increase in officer incentive compensation expense and a $1.1 million increase in share-based compensation expenses related to PBRSU awards granted under the 2017 Employee LTIP, partially offset by a $336,000 decrease in additional compensation expense.

The increase in 2024 was due to an increase in salaries expense of $4.9 million, a $2.6 million increase in officer incentive compensation expense, and a $1.2 million increase in additional compensation expense, partially offset by a $340,000 decrease in share-based compensation expenses related to PBRSU and TBRSU awards granted under the 2017 Employee LTIP and a $288,000 decrease in the vacation expense accrual.

Park had 1,694 full-time equivalent employees at year-end 2025, compared to 1,725 full-time equivalent employees at year-end 2024 and compared to 1,782 full-time equivalent employees at year-end 2023.

Employee benefits expense decreased by $1.4 million, or 3.3%, to $40.4 million for 2025, compared to $41.7 million for 2024.

The $41.7 million for 2024 was a decrease of $540,000, or 1.3%, compared to $42.3 million in 2023.

The decrease in 2025 was due to a $1.4 million decrease in group insurance costs, a $408,000 decrease in supplemental retirement plan expense and a $390,000 decrease in pension plan expense, partially offset by a $254,000 increase in payroll tax expense and a $291,000 increase in KSOP match expense.

The decrease in 2024 was due to a $1.9 million decrease in group insurance costs, partially offset by a $680,000 increase in pension plan expense, a $310,000 increase in the KSOP match and a $175,000 increase in payroll tax expense.

The increase in 2023 was due to a $3.5 million increase in group insurance costs, a $1.0 million increase in payroll tax expense and a $347,000 increase in the KSOP match, partially offset by a $3.5 million decrease in pension plan expense.

Occupancy expense decreased by $298,000, or 2.3%, to $12.8 million in 2024, compared to $13.1 million in 2023.

Occupancy expense increased by $563,000, or 4.4%, to $13.4 million in 2025, compared to $12.8 million in 2024.

The $12.8 million in 2024 was a decrease of $298,000, or 2.3%, compared to $13.1 million in 2023.

The $298,000 decrease was primarily due to decreased expense for the rental of leased space and decreased utilities expense, partially offset by increases in maintenance and repairs expense, which included expenses related to a building demolition.

The $752,000 decrease in 2023 was primarily related to decreased lease expense and depreciation expense, partially offset by an increase in maintenance and repair expenses and an increase in utilities expense.

The $563,000 increase in 2025 was primarily due to increased expense for the rental of leased space and increased depreciation and amortization expense, partially offset by decreased maintenance and repairs expense.

The $298,000 decrease in 2024 was primarily due to decreased expense for the rental of leased space and decreased utilities expense, partially offset by increases in maintenance and repairs expense, which included expenses related to a building demolition.

Furniture and equipment expense decreased $1.2 million, or 12.2%, to $8.8 million in 2025, compared to $10.0 million in 2024.

The $12.2 million in 2023 was an increase of $332,000, or 2.8%, compared to $11.9 million in 2022.

The $10.0 million in 2024 was a decrease of $2.3 million, or 18.4%, compared to $12.2 million in 2023.

The decrease in 2025 was primarily related to decreased depreciation expense.

The decrease in 2024 was primarily related to decreased depreciation expense and decreased expenses related to repairs on maintenance and equipment.

The increase in 2023 was primarily related to increased depreciation expense and increased expenses related to repairs and maintenance on equipment.

Data processing fees increased by $2.9 million, or 7.8%, to $40.6 million in 2024, compared to $37.6 million in 2023.

Data processing fees increased by $4.7 million, or 11.6%, to $45.3 million, compared to $40.6 million in 2024.

The $40.6 million in 2024 was an increase of $2.9 million, or 7.8%, compared to $37.6 million in 2023.

The increase in 2025 was primarily related to an increase in software expenses of $5.7 million, partially offset by a decrease in debit card processing costs of $1.0 million.

The increase in 2024 primarily related to an increase in software expenses of $5.9 million, partially offset by a decrease in debit card processing costs of $3.0 million.

The increase in 2023 primarily related to an increase in software expenses of $3.7 million and an increase in debit card processing costs of $1.4 million.

Professional fees and services increased $2.0 million, or 6.8%, to $31.1 million in 2024, compared to $29.2 million in 2023.

The $29.2 million in 2023 was a decrease of $1.7 million, or 5.4%, compared to $30.8 million in 2022.

Professional fees and services increased $306,000, or 1.0%, to $31.5 million in 2025, compared to $31.1 million in 2024.

The $31.1 million in 2024 was an increase of $2.0 million, or 6.8%, compared to $29.2 million in 2023.

This subcategory of total other expense includes legal fees, management consulting fees, directors' fees, audit fees, regulatory examination fees and memberships in industry associations.

The $306,000 increase in 2025 was related to increases in management consulting fees, temporary wages and legal expense, partially offset by decreases in directors fees, other fees and recruiting fees.

The $2.0 million increase in 2024 related to increases in management consulting fees, credit services expense, IntraFi insured deposit fees, temporary wages and recruiting fees, partially offset by decreases in legal fees and other fees.

The $1.7 million decrease in 2023 related to decreases in management consulting fees and recruiting fees, partially offset by increases in IntraFi insured deposit fees and temporary wages.

Marketing expense increased by $847,000, or 15.5%, to $6.3 million in 2024, compared to $5.5 million in 2023.

Marketing expense decreased by $244,000, or $3.9%, to $6.1 million in 2025, compared to $6.3 million in 2024.

The $6.3 million in 2024 was an increase of $847,000, or 15.5%, compared to $5.5 million in 2023.

The $244,000 decrease in 2025 was primarily due to decreases in organization dues, special events and customer entertainment expense.

The $847,000 increase in 2024 was primarily due to an increase in advertising expense.

Insurance expense decreased by $905,000, or 11.8% to $6.7 million in 2024, compared to $7.6 million in 2023.

The $7.6 million in 2023 was an increase of $2.2 million, or 41.1%, compared to $5.4 million in 2022.

The decrease in 2024 and the increase in 2023 were related to fluctuations in FDIC assessment expense.

Insurance expense decreased by $380,000, or 5.6%, to $6.4 million, compared to $6.7 million in 2024.

The $6.7 million in 2024 was a decrease of $905,000, or 11.8%, compared to $7.6 million in 2023.

The decreases in 2025 and 2024 were related to decreases in FDIC assessment expense.

The subcategory "Miscellaneous" other expense includes expenses for supplies, travel, and other miscellaneous expense.

The subcategory Miscellaneous other expense increased by $1.7 million, or 14.6%, to $12.9 million in 2024, compared to $11.3 million in 2023.

The subcategory Miscellaneous other expense decreased by $4.4 million, or 34.0%, to $8.5 million in 2025 compared to $12.9 million in 2024.

The $12.9 million in 2024 was an increase of $1.7 million, or 14.6%, compared to $11.3 million in 2023.

The decrease in 2025 was related to decreases in fraud and other non loan related losses, provision for unfunded credit losses and other miscellaneous expenses.

The increase in 2024 was related to increases in fraud and other non loan related losses as well as an increase in the provision for unfunded credit losses.

The increase in 2023 was related to increases in training and travel expenses and increased expense related to losses as a result of fraud and other non loan related losses and other miscellaneous expenses, partially offset by a decrease in operating lease depreciation expense and a decrease in the expense for the provision for unfunded credit losses.

Efficiency Ratio:

21 unchanged sentences

less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions 668 1,154 633 Interest and fees on loans

less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions — — 7 Interest on deposits

less interest income on former Vision Bank relationships 2,030 54 631 Interest and fees on loans

6 unchanged sentences

less impact of strategic initiatives (156) 775 (1,038) Miscellaneous income

less Vision related gain on the sale of OREO, net 115 — 5,607 Gain (loss) on the sale of OREO, net

less Vision related OREO valuation adjustments, net (229) 115 (370) Miscellaneous income

less other service income related to former Vision Bank relationships 331 312 175 Other service income

less Vision related OREO devaluations — (416) (594) Miscellaneous income

less Vision related OREO valuation markup — 46 12,009 OREO valuation markup

less loss on the sale of debt securities, net (2,250) (526) (7,875) Loss on the sale of debt securities, net

5 unchanged sentences

less building demolition costs — 458 — Occupancy expense

less special incentive 1,700 — — Salaries

less restructuring costs 989 — — Salaries expense

less merger related expenses related to First Citizens acquisition 1,509 — — Professional fees and services

less merger related expenses related to First Citizens acquisition 47 — — Miscellaneous expense

less Foundation contributions 1,000 2,000 1,000 Foundation contributions

84 unchanged sentences

Income tax expense was $33.3 million in 2024 and consisted of federal income tax expense of $31.8 million and state income tax expense of $1.5 million.

This compares to income tax expense of $32.1 million in 2022, which consisted of federal income tax expense of $30.8 million and state income tax expense of $1.3 million.

Income tax expense was $26.9 million in 2023 and consisted of federal income tax expense of $25.7 million and state income tax expense of $1.2 million.

The effective income tax rate was 18.6% in 2025, 18.0% in 2024 and 17.5% in 2023.

1 unchanged sentence

Park's permanent federal tax differences were approximately $7.4 million in 2025, compared to $7.0 million in 2024 and $6.6 million in 2023.

Park expects permanent federal tax differences for 2025 will be approximately $5.5 million.

Park expects permanent federal tax differences for 2026 will be approximately $6.

CREDIT METRICS AND PROVISION FOR CREDIT LOSSES

24 unchanged sentences

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 also to be individually evaluated.

Additionally, accruing collateral dependent commercial loans to borrowers experiencing financial difficulty are also to be individually evaluated and a review of classified credits is performed to identify any additional loans which do not share similar risk characteristics and are to be individually evaluated.

Table 23- Allowance for Credit Losses Summary

13 unchanged sentences

General reserve as a % of collectively evaluated loans 1.16 % 1.12 % 1.06 %

(1) Includes accruing collateral dependent commercial loans to borrowers experiencing financial difficulty at December 31, 2024 and 2023 and accruing TDRs at December 31, 2022.

The allowance for credit losses of $93.0 million at December 31, 2025 represented a $5.0 million, or 5.7%, increase compared to $88.0 million at December 31, 2024.

The increase was due to a $7.9 million increase in general reserves and a $3.7 million decrease in individual reserves on nonaccrual loans.

The increase was due to a $5.6 million increase in general reserves, partially offset by a $560,000 decrease in individual reserves on nonaccrual loans.

The $5.6 million increase in general reserves takes into account changing economic forecasts and prepayment and curtailment speeds, while balancing the risks associated with other economic factors.

Additionally, the $5.6 million increase in general reserves included a $2.3 million additional qualitative reserve related to several special purpose mortgage loan programs to assist borrowers in attaining home ownership.

As of December 31, 2025, the loans in these special purpose mortgage loan programs totaled $234.2 million.

Delinquency rates within these special purpose mortgage loan programs have become higher than those of Park's traditional 30-year mortgage portfolio loans.

These special purpose mortgage loan programs require very little, if any, down payment, and the loan-to-value on these loans are generally at 90% or above.

For these reasons, management expects that the PD and LGD related to loans within these programs will be higher than that of Park's standard 30-year portfolio loans and established a qualitative factor related to the increased risk of loss on mortgage loans within these programs.

Management will continue to evaluate this portfolio as additional information becomes available.

The allowance for credit losses of $88.0 million at December 31, 2024 represented a $4.2 million, or 5.0%, increase compared to $83.7 million at December 31, 2023.

The increase was due to a $7.9 million increase in general reserves and a $3.7 million decrease in individual reserves on nonaccrual loans.

The $7.9 million increase in general reserves took into account changing economic forecasts and prepayment and curtailment speeds, while balancing the risks associated with other economic factors.

Additionally, the $7.9 million increase in general reserves included a $757,000 additional reserve related to Hurricane Helene which impacted borrowers in Park's Carolina region.

The decrease in individual reserves at December 31, 2024 compared to December 31, 2023 was primarily related to $4.2 million in charge-offs related to two relationships that previously carried individual reserves, partially offset by new or increasing reserves on other credits.

The allowance for credit losses of $83.7 million at December 31, 2023 represented a $1.6 million, or 1.9%, decrease compared to $85.4 million at December 31, 2022.

The decrease was largely due to a $3.1 million decrease in general reserves taking into account changing economic forecasts while balancing the risks associated with other economic factors and a $1.4 million increase in individual reserves.

The composition of the ACL at December 31, 2025 and December 31, 2024 was as follows:

Table 24 - ACL Composition

December 31, 2025

(In thousands) Commercial,

financial and

agricultural Commercial

real estate Construction

real estate Residential

real estate Consumer Leases Total

Ending allowance balance attributed to loans:

Individually evaluated for impairment - nonaccrual $ 729 $ — $ — $ — $ — $ 10 $ 739

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

Collectively evaluated for impairment 13,413 18,177 7,709 27,344 25,393 198 92,234

Accruing acquired with deteriorated credit quality — — — — — — —

Total ending allowance balance $ 14,142 $ 18,177 $ 7,709 $ 27,344 $ 25,393 $ 208 $ 92,973

Loan balance:

Individually evaluated for impairment - nonaccrual $ 15,735 $ 28,879 $ 577 $ 1,565 $ — $ 168 $ 46,924

Individually evaluated for impairment - accrual 18,365 — — — — — 18,365

Loans collectively evaluated for impairment 1,178,050 2,178,456 398,306 2,373,694 1,823,247 32,210 7,983,963

Accruing loans acquired with deteriorated credit quality — 1,325 542 123 — — 1,990

Total ending loan balance $ 1,212,150 $ 2,208,660 $ 399,425 $ 2,375,382 $ 1,823,247 $ 32,378 $ 8,051,242

ACL as a percentage of loan balance:

Individually evaluated for impairment - nonaccrual 4.63 % — % — % — % — % 5.95 % 1.57 %

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

Loans collectively evaluated for impairment 1.14 % 0.83 % 1.94 % 1.15 % 1.39 % 0.61 % 1.16 %

Accruing loans acquired with deteriorated credit quality — % — % — % — % — % — % — %

Total 1.17 % 0.82 % 1.93 % 1.15 % 1.39 % 0.64 % 1.15 %

Table 24 - ACL Composition (continued)

December 31, 2024

(In thousands) Commercial,

financial and

agricultural Commercial

real estate Construction

real estate Residential

real estate Consumer Leases Total

Ending allowance balance attributed to loans:

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

Accruing acquired with deteriorated credit quality — — — — — — —

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

Loan balance:

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

Accruing loans acquired with deteriorated credit quality — 1,317 581 276 — — 2,174

Total ending loan balance $ 1,269,585 $ 1,994,332 $ 412,577 $ 2,200,433 $ 1,910,372 $ 29,829 $ 7,817,128

ACL as a percentage of loan balance:

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 %

Accruing loans acquired with deteriorated credit quality — % — % — % — % — % — % — %

Total 1.00 % 0.98 % 1.73 % 1.02 % 1.37 % 0.51 % 1.13 %

Management believes that the allowance for credit losses at year-end 2025 is adequate to absorb estimated life of loan credit losses in the loan portfolio.

15 unchanged sentences

Consumer 13,246 12,753 8,293

Leases 8 — 42

Total charge-offs $ 16,624 $ 18,334 $ 10,863

4 unchanged sentences

Consumer 6,197 5,315 4,379

Leases 1 1 31

Total recoveries $ 10,143 $ 8,012 $ 5,942

28 unchanged sentences

Nonperforming Assets:

After the adoption of ASU 2022-02 on January 1, 2023, which eliminated the TDR classification , non-performing assets include:

1) loans whose interest is accounted for on a nonaccrual basis;

2) loans which are contractually past due 90 days or more as to principal or interest payments but whose interest continues to accrue;

and 3) OREO which results from taking possession of property that served as collateral for a defaulted loan.

Prior to the adoption of ASU 2022-02 on January 1, 2023, nonperforming assets included:

Non-performing assets include:

(1) loans whose interest is accounted for on a nonaccrual basis;

2) TDRs on accrual status;

(2) loans which are contractually past due 90 days or more as to principal or interest payments but whose interest continues to accrue;

6 unchanged sentences

Nonaccrual loans $ 66,515 $ 68,178 $ 60,259

Accruing TDRs (for year 2022) (1)

N/A N/A 20,134

Loans past due 90 days or more and accruing 2,738 1,754 859

3 unchanged sentences

Percentage of nonperforming loans to total loans 0.86 % 0.89 % 0.82 %

0.89 % 0.82 % 1.42 %

Percentage of nonperforming assets to total loans

4 unchanged sentences

Allowance for credit losses to nonaccrual loans 139.78 % 129.02 % 138.98 %

(1) Effective January 1, 2023, Park adopted ASU 2022-02.

Among other things, this ASU eliminated the concept of TDRs.

Park classifies loans as nonaccrual when 1) a loan is maintained on a cash basis because of deterioration in the financial condition of the borrower, 2) payment in full of principal or interest is not expected, or 3) principal or interest has been in default for a period of 90 days for commercial loans and 120 days for all other loans.

25 unchanged sentences

Individually evaluated for impairment - accrual 18,365 15,290 —

15,290 — 11,477

Individually evaluated for impairment - nonaccrual

2 unchanged sentences

Total $ 4,504,374 $ 4,249,286 $ 4,014,298

(1) Includes accruing collateral dependent commercial loans to borrowers experiencing financial difficulty at December 31, 2024 and 2023 and accruing TDRs at December 31, 2022.

*Commercial loans include:

5 unchanged sentences

Park’s watch list includes all criticized and classified commercial loans, defined by Park as loans rated special mention or worse.

Park had $99.9 million of collectively evaluated commercial loans and accruing individually evaluated for impairment loans included on the watch list at December 31, 2024, compared to $60.7 million at December 31, 2023, and $93.3 million at December 31, 2022.

Park had $74.1 million of accruing commercial loans included on the watch list at December 31, 2025, compared to $99.9 million at December 31, 2024, and $60.7 million at December 31, 2023.

The existing conditions of these loans do not warrant classification as nonaccrual.

However, these loans have shown some weakness and management performs additional analysis regarding each borrower's ability to comply with payment terms.

The increase in watch list credits during the year ended 2024 was largely due to the downgrade of two non-bank consumer finance company relationships to special mention and/or accruing individually evaluated totaling $28.0 million, partially offset by problem loan resolutions.

The downgraded loans were current in respect to their contractual terms at December 31, 2024.

Delinquencies have remained low over the past 36 months.

Park considers a loan delinquent when it reaches 30 days past due.

Delinquent and accruing loans were $31.4 million, or 0.39% of total loans at December 31, 2025, compared to $28.4 million, or 0.36% of total loans at December 31, 2024, and $23.5 million, or 0.31% of total loans at December 31, 2023.

Individually Evaluated Loans:

Loans that do not share risk characteristics are evaluated on an individual basis.

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

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

Individual analysis will establish a reserve for loans in scope.

Reserves on individually evaluated commercial loans are typically based on management’s best estimate of the fair value of collateral securing these loans.

Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation.

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 and a review of classified credits is performed to identify any additional loans which do not share similar risk characteristics and are to be individually evaluated.

Individual analysis establishes an individual reserve for loans in scope.

Reserves on individually evaluated commercial loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as appropriate.

The amount ultimately charged off for these loans may be different from the reserve as the ultimate liquidation of the collateral may be for an amount different from management’s estimate.

Prior to the elimination of TDRs with the adoption of ASU 2022-02 on January 1, 2023, Park also included commercial accruing TDRs as individually evaluated loans.

Nonaccrual individually evaluated commercial loans were $53.1 million at December 31, 2024, an increase of $7.9 million, compared to $45.2 million at December 31, 2023 and a decrease of $13.7 million, compared to $66.9 million at December 31, 2022.

Accruing individually evaluated commercial loans were $15.3 million at December 31, 2024, compared to no accruing individually evaluated commercial loans at December 31, 2023 and $11.5 million of accruing individually evaluated commercial loans at December 31, 2022.

The $11.5 million of individually evaluated commercial loans at December 31, 2022 consisted of loans modified in a TDR which were performing in accordance with the restructured ter ms.

Nonaccrual individually evaluated commercial loans were $46.9 million at December 31, 2025, a decrease of $6.2 million, compared to $53.1 million at December 31, 2024 and an increase of $1.7 million, compared to $45.2 million at December 31, 2023.

Accruing individually evaluated commercial loans were $18.4 million at December 31, 2025, compared to $15.3 million at December 31, 2024, and compared to no accruing individually evaluated commercial loans at December 31, 2023.

At December 31, 2025, Park had taken partial charge-offs of $4.7 million related to the $46.9 million of the nonaccrual individually evaluated commercial loans, compared to partial charge-offs of $5.0 million related to the $53.1 million of nonaccrual individually evaluated commercial loans at December 31, 2024 and compared to partial charge-offs of $2.3 million related to the $45.2 million of nonaccrual individually evaluated commercial loans at December 31, 2023.

12 unchanged sentences

The carrying amount of accruing loans acquired with deteriorated credit quality at December 31, 2025, 2024, and 2023 was $2.0 million, $2.2 million, and $2.8 million, respectively.

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.

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 $510,000, $551,000 and $534,000 at December 31, 2025, 2024, and 2023, respectively.

Additional Considerations:

As part of its quarterly allowance process, Park evaluates certain industries which are more likely to be under economic stress in the current environment.

The office sector continues to face challenges as it adjusts to the new normal of work from home brought on by the pandemic.

The office sector continues to face challenges from adjustments companies have made as a result of the pandemic.

Nationally, office properties in downtown and urban business districts are seeing the most stress .

As of December 31, 2025, Park had $323.2 million of loans which were fully or partially secured by non-owner-occupied office space, $320.8 million of which were accruing.

This portfolio is not currently exhibiting signs of stress, but Park continues to monitor this portfolio, and others, for signs of deterioration.

This portfolio is not currently exhibiting signs of stress, but Park continues to monitor this portfolio for signs of deterioration.

The non‑bank consumer finance sector has come under pressure as elevated interest rates and broader economic challenges, including inflation, have increased financial strain on consumer borrowers.

As of December 31, 2025, Park’s outstanding loans to non‑bank consumer finance companies totaled $274.1 million, of which $25.4 million were categorized as accruing watch list credits and $2.1 million were nonaccrual loans.

Watch list and nonaccrual loans within this portfolio are in differing stages of liquidation, and Park expects the associated loan balances to decline as these liquidation processes continue to be executed.

Park maintains heightened oversight of this portfolio and continues to monitor it for any indications of deterioration that could adversely affect credit quality.

Additionally, in calculating the allowance, management considered the geopolitical environment and uncertainty regarding the fiscal policy of the current political administration, including tariffs.

While it is too early to assess the impact of increased tariffs on individual borrowers, management continues to weigh a baseline ("most likely" scenario) forecast with a "moderate recession" scenario in calculating the general reserve.

The "moderate recession" scenario considers the impact of tariffs being higher for longer than considered in the "most likely" scenario.

CAPITAL RESOURCES

1 unchanged sentence

Park’s objective in managing its liquidity is to maintain the ability to continuously meet the cash flow needs of customers, such as borrowings or deposit withdrawals, while at the same time seeking higher yields from longer-term lending and investing activities.

Cash and cash equivalents decreased by $57.7 million during 2024 to $160.6 million at year end.

Cash and cash equivalents increased by $72.9 million during 2025 to $233.5 million at year end.

Cash provided by operating activities was $198.3 million in 2025, $178.8 million in 2024 and $151.1 million in 2023.

Net income was the primary source of cash provided by operating activities during each year.

Cash used in investing activities was $19.1 million in 2024, cash provided by investing activities was $63.5 in 2023 and cash used in investing activities was $405.5 million in 2022.

Cash provided by investing activities was $86.2 million in 2025, cash used in investing activities was $19.1 million in 2024, and cash provided by investing activities was $63.5 million in 2023.

Investment securities transactions and loan originations/repayments are the major uses or sources of cash in investing activities.

Proceeds from the sale, repayment or maturity of investment securities provide cash and purchases of investment securities use cash.

Net investment securities transactions provided cash of $338.5 million in 2024, provided cash of $418.9 million in 2023 and used cash of $137.8 million in 2022.

Net investment securities transactions provided cash of $339.1 million in 2025, provided cash of $338.5 million in 2024 and provided cash of $418.9 million in

Cash used by the net increase in the loan portfolio was $233.1 million in 2025, $341.5 million in 2024 and $330.4 million in 2023.

Cash used in financing activities was $217.4 million in 2024, $186.1 million in 2023 and cash provided by financing activities was $239.4 million in 2022.

Cash used in financing activities was $211.5 million in 2025, $217.4 million in 2024 and $186.1 million in 2023.

A major source of cash provided by or used in financing activities is the net change in deposits.

Deposits increased and provided $101.0 million of cash in 2024, decreased and used $192.1 million of cash in 2023, and increased and provided $330.2 million of cash in 2022.

These decreases and increases in deposits included an increase in off-balance sheet deposits of $114.0 million in 2024, a decrease in off-balance sheet deposits of $194.8 million in 2023 and a decrease in off-balance sheet deposits of $787.1 million in 2022.

Deposits increased and provided $100.2 million of cash in 2025 and $101.0 million of cash in 2024 and decreased and used $192.1 million of cash in 2023.

These changes in deposits included a decrease in off-balance sheet deposits of $9.9 million in 2025, an increase in off-balance sheet deposits of $114.0 million in 2024 and a decrease in off-balance sheet deposits of $194.8 million in 2023.

Other major sources of cash from financing activities are short-term borrowings.

In 2024, net short-term borrowings decreased and used $237.8 million in cash.

In 2023, net short-term borrowings increased and provided $100.8 million in cash.

In 2022, net short-term borrowings decreased and used $11.4 million in cash.

Cash used in the repurchase of common shares was $23.0 million in 2023.

No common shares were repurchased in 2024 or 2022.

Net short-term borrowings decreased and used $8.7 million in cash in 2025 and $237.8 million in cash in 2024 and increased and provided $100.8 million in cash in 2023.

Cash of $190.0 million was used in the repayment of subordinated notes in 2025.

No cash was used in the repayment of subordinated notes in 2024 or 2023.

Cash used in the repurchase of common shares was $20.1 million in 2025 and $23.0 million in 2023.

No common shares were repurchased in 2024.

Finally, cash declined by $89.9 million in 2025, $77.5 million in 2024 and $69.0 million in 2023, from the payment of cash dividends.

21 unchanged sentences

Short-term borrowings 81,711 — — — 81,711

Subordinated notes 15,000 174,651 — — — 189,651

Total interest bearing liabilities 3,192,246 308,262 2,119,529 48,056 1,238 5,669,331

12 unchanged sentences

For the twelve-month cumulative interest rate sensitivity gap position, rate sensitive assets exceeded rate sensitive liabilities by $485 million or 5.4% of interest earning assets.

The cumulative twelve-month interest rate sensitivity gap position at year-end 2023 was a positive $783 million or 8.7% of total interest earning assets.

The percentage of interest earning assets maturing or repricing within one year was 44.0% at year-end 2024, compared to 46.5% at year-end 2023.

At December 31, 2024, the cumulative interest earning assets maturing or repricing within twelve months were $3,955 million compared to the cumulative interest bearing liabilities maturing or repricing within twelve months of $3,653 million.

For the twelve-month cumulative interest rate sensitivity gap position, rate sensitive assets exceeded rate sensitive liabilities by $302 million or 3.4% of interest earning assets.

The percentage of interest bearing liabilities maturing or repricing within one year was 61.7% at year-end 2025, compared to 62.9% at year-end 2024.

2 unchanged sentences

However, the usefulness of the interest rate sensitivity gap analysis as a forecasting tool in projecting net interest income is limited.

The gap analysis does not consider the magnitude, timing or frequency by which assets or liabilities will reprice during a period and also contains assumptions as to the repricing of interest bearing transaction accounts and savings accounts that may not prove to be correct.

While the gap analysis does take into consideration both contractual repayments and expected prepayments of various assets, it does not consider the magnitude, specific timing, or frequency by which assets or liabilities will reprice during a period and also contains assumptions as to the repricing of interest bearing transaction accounts and savings accounts that may not prove to be correct.

Management supplements the interest rate sensitivity gap analysis with periodic simulations of balance sheet sensitivity under various interest rate and what-if scenarios to better forecast and manage the net interest margin.

22 unchanged sentences

Short-term borrowings 16 81,711 — — — 81,711

Subordinated notes (3)

17 — — — 189,651 189,651

Operating leases 13 2,621 5,060 4,282 9,116 21,079

5 unchanged sentences

(2) Pension payments reflect 10 years of payments, through 2035.

(3) Subordinated notes are shown above based on their contractual maturity.

Of the $189.7 million in subordinated notes, $15.0 million is currently able to be redeemed and $174.7 million is able to be redeemed on or after September 1, 2025.

As of December 31, 2025, Park had $25.6 million in unfunded commitments related to investments in qualified affordable housing projects which are not included in "Table 32 - Contractual Obligations" above.

18 unchanged sentences

Tangible equity (non-U.S.

GAAP) was $1,080.8 million at December 31, 2024, and was $981.0 million at December 31, 2023.

GAAP) was $1,190.8 at December 31, 2025, and was $1,080.8 million at December 31, 2024.

At December 31, 2025, tangible equity (non-U.S.

7 unchanged sentences

Balance at January 1, 2023 $ (138,019) 16,263,583

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

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

Treasury shares reissued for share-based compensation awards 4,014 38,842

12 unchanged sentences

Accumulated other comprehensive (loss) income, net reflected a loss of $12.7 million, $46.2 million and $66.2 million at December 31, 2025, 2024, and 2023, respectively.

During 2024, the change in net unrealized holding (loss) gain on AFS debt

securities, net of income tax, was a gain of $5.0 million, which included a $415,000, net of income tax, realized loss on the sale of debt securities.

During 2025, the change in net unrealized holding (loss) gain on AFS debt securities, net of income tax, was a gain of $30.6 million, which included a $1.8 million, net of income tax, realized loss on the sale of debt securities.

During 2022, the change in net unrealized holding (loss) gain on AFS debt securities, net of income tax, was a loss of $116.9 million.

Additionally, Park recognized an other comprehensive gain of $15.1 million, net of income tax, related to the change in pension plan assets and benefit obligations in 2024.

The $15.1 million gain in 2024 included $4.9 million, net of income tax, related to a realized pension settlement gain.

Park recognized an other comprehensive gain of $8.4 million, net of income tax, related to the change in pension plan assets and benefit obligations in 2023, compared to an other comprehensive loss of $888,000, net of income tax, related to the change in pension plan assets and benefit obligations in 2022.

Finally, during 2022, Park recognized an other comprehensive gain of $206,000, net of income tax, related to an unrealized net holding gain on cash flow hedging derivatives.

There was no unrealized holding gain or loss on cash flow hedging derivatives in 2024 or 2023.

During 2024, the change in net unrealized holding (loss) gain on AFS debt securities, net of income tax, was a gain of $5.0 million, which included a $415,000, net of income tax, realized loss on the sale of debt securities.

During 2023, the change in net unrealized holding (loss) gain on AFS debt securities, net of income tax, was a gain of $27.8 million, which included a $6.2 million, net of income tax, realized loss on the sale of debt securities.

Additionally, Park recognized an other comprehensive gain of $2.9 million, net of income tax, related to the change in pension plan assets and benefit obligations in 2025, compared to a $15.1 million gain in 2024, which included $4.9 million, net of income tax, related to a realized pension settlement gain.

Park recognized an other comprehensive gain of $8.4 million, net of income tax, related to the change in pension plan assets and benefit obligations in 2023.

Financial institution regulators have established guidelines for minimum capital ratios for banks, thrifts and bank holding companies.

31 unchanged sentences

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 7. Management’s Discussion and Analysis