What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-02-23 compared with 2025-02-24 · 331 added, 404 removed, 2409 unchanged (23% of the section changed)

6 unchanged sentences

Auditor Location:

Louisville, KY

Auditor Firm ID:

1 unchanged sentence

Consolidated Statements of Income for the Years Ended December 31, 2025, 2024 and 2023 78

Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2024, 2023 and 2022 80

Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2025, 2024 and 2023 80

Consolidated Statements of Changes in Shareholders' Equity for the Years Ended December 31, 2025, 2024 and 2023 81

17 unchanged sentences

Accordingly, even an effective system of internal control over financial reporting will provide only reasonable assurance with respect to financial statement preparation.

With the participation of our Chairman of the Board and Chief Executive Officer and our Chief Financial Officer, Secretary, and Treasurer, management evaluated the effectiveness of the Corporation’s internal control over financial reporting at December 31, 2024, the end of the Corporation’s fiscal year.

With the participation of our Chief Executive Officer and President and our Chief Financial Officer, Secretary, and Treasurer, management evaluated the effectiveness of the Corporation’s internal control over financial reporting at December 31, 2025, the end of the Corporation’s fiscal year.

In making this assessment, management used the criteria set forth for effective internal control over financial reporting by the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control — Integrated Framework (2013).

6 unchanged sentences

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K.

Trautman /s/ Brady T.

Trautman Brady T.

Chairman of the Board and Chief Executive Officer Chief Financial Officer, Secretary and Treasurer

/s/ Matthew R.

Miller /s/ Brady T.

Miller Brady T.

Chief Executive Officer and President Chief Financial Officer, Secretary and Treasurer

February 23, 2026

32 unchanged sentences

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

Allowance for Credit Losses

The allowance for credit losses (the “ACL”) as described in Notes 1 and 6 is an accounting estimate of expected credit losses over the estimated life of loans.

4 unchanged sentences

The Company adjusts its quantitative results for certain qualitative factors to reflect the extent to which management expects current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated.

The auditing of the quantitative adjustments related to weighting of economic scenarios was identified by us as a critical audit matter because of the significant subjective and complex judgments made by management to develop the quantitative adjustments, which led to significant auditor judgment and audit effort to evaluate the quantitative adjustment made, on top of the model, that weights the economic scenarios to reflect model risk in the current economic environment.

The auditing of the quantitative adjustments related to weighting of economic scenarios was identified by us as a critical audit matter because of the significant subjective and complex judgments made by management to develop the quantitative adjustments, which led to significant auditor judgment and audit effort to evaluate the quantitative adjustments made, on top of the model, that weights the economic scenarios to reflect model risk in the current economic environment.

The primary procedures performed to address the critical audit matter included:

• Testing the effectiveness of management's controls addressing:

• Testing the effectiveness of management's internal controls addressing:

◦ Evaluation of the appropriateness of the key judgments used in the determination of the quantitative adjustment, made on top of the model, that weights the economic scenarios used in the forecast.

3 unchanged sentences

We have served as the Company's auditor since 2006.

Columbus, Ohio

Louisville, Kentucky

February 23, 2026

52 unchanged sentences

no preferred shares outstanding at December 31, 2025 and 2024)

Common shares, no par value ( 20,000,000 common shares authorized;

Common shares, no par value ( 40,000,000 common shares authorized at December 31, 2025 and 20,000,000 at December 31, 2024;

17,623,104 common shares issued at December 31, 2025 and 2024)

49 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 the sale of debt securities, net ( 2,250 ) ( 526 ) ( 7,875 )

50 unchanged sentences

Net income $ 180,073 $ 151,420 $ 126,734

Other comprehensive income (loss) net of income tax:

Other comprehensive income, net of income tax:

Defined benefit pension plan:

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

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

Amortization of prior service cost, net of income tax effect of $ 10 , $ 10 and $ 10 , for the years ended December 31, 2025, 2024, and 2023, respectively

Unrealized net actuarial gain, net of income tax effect of $ 748 , $ 5,285 and $ 2,215 , for the years ended December 31, 2025, 2024, and 2023, respectively

2,815 19,881 8,334

3 unchanged sentences

Debt securities available-for-sale:

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

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

Net loss realized on sale of debt securities AFS, net of income tax effect of $ 473 and $ 111 , and $ 1,654 , for the years ended December 31, 2025, 2024, and 2023, respectively

1,777 415 6,221

Unrealized net holding gain (loss) on debt securities available-for-sale, net of income tax effect 4,954 27,831 ( 116,867 )

Cash flow hedging derivatives:

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

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

Unrealized net holding gain on cash flow hedging derivatives, net of income tax effect — — 206

Other comprehensive income (loss) $ 20,016 $ 36,203 $ ( 117,549 )

Unrealized holding gain on debt securities AFS, net of income tax effect of $ 7,657 , $ 1,206 and $ 5,743 , for the years ended December 31, 2025, 2024 and 2023, respectively

28,806 4,539 21,610

Unrealized net holding gain on debt securities available-for-sale, net of income tax effect 30,583 4,954 27,831

Other comprehensive income $ 33,436 $ 20,016 $ 36,203

Comprehensive income $ 213,509 $ 171,436 $ 162,937

5 unchanged sentences

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

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

Balance, January 1, 2023, as previously presented — $ — 16,263,583 $ 462,404 $ 847,235 $ ( 138,019 ) $ ( 102,394 )

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

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

Net income 126,734

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

Other comprehensive income, net of income tax 36,203

Cash dividends, $ 4.20 per common share

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

Share-based compensation expense 6,787

1 unchanged sentence

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

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

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

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

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

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

Net income 151,420

4 unchanged sentences

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

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

Treasury shares reissued for director grants 7,342 465 758

2 unchanged sentences

Other comprehensive income, net of income tax 33,436

Cash dividends, $ 4.74 per common share

Cash dividends, $ 5.53 per share

Share-based compensation expense 7,510

1 unchanged sentence

32,365 ( 6,184 ) ( 108 ) 3,344

Treasury shares repurchased ( 120,000 ) ( 20,134 )

Treasury shares reissued for director grants 6,915 354 749

12 unchanged sentences

Amortization of investment securities, net 883 1,606 3,794

(Increase) decrease in deferred income tax ( 409 ) ( 703 ) 611

Increase in deferred income tax ( 1,538 ) ( 409 ) ( 703 )

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

5 unchanged sentences

Gain on sale of loans in secondary market ( 2,968 ) ( 2,011 ) ( 1,213 )

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

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

Gain on sale of non-mortgage loans — — ( 495 )

Bank owned life insurance income ( 6,610 ) ( 7,770 ) ( 5,338 )

2 unchanged sentences

Decrease (increase) in prepaid dealer premiums 2,878 1,513 ( 43 )

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

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

Decrease in other assets 2,604 8,800 3,422

(Decrease) increase in other liabilities ( 8,634 ) 1,067 ( 6,982 )

Net cash provided by operating activities $ 198,320 $ 178,848 $ 151,137

1 unchanged sentence

Proceeds from redemption/repurchase of FHLB stock 1,088 18,371 11,672

Proceeds from sales of investment securities 44,037 284,454 —

Proceeds from sales of:

AFS debt securities 76,860 44,037 283,084

Equity securities 1,196 — 1,370

Proceeds from calls and maturities of:

5 unchanged sentences

Net loan originations, portfolio loans ( 233,084 ) ( 341,500 ) ( 330,443 )

Proceeds from the sale of OREO 768 1,095 965

Bank owned life insurance death benefits 4,587 12,466 1,816

Park National Corporation and Subsidiaries

2 unchanged sentences

(In thousands) 2025 2024 2023

Proceeds from the sale of non-mortgage loans — — 4,345

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

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

Purchases of bank owned life insurance ( 2,767 ) ( 9,937 ) ( 10,779 )

1 unchanged sentence

Purchases of premises and equipment ( 6,373 ) ( 9,183 ) ( 7,589 )

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

Net cash provided by (used in) investing activities $ 86,160 $ ( 19,148 ) $ 63,524

Financing activities

Net increase (decrease) in deposits 90,266 214,961 ( 386,901 )

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

Net decrease (increase) in off-balance sheet deposits 9,921 ( 114,001 ) 194,752

Net (decrease) increase in short-term borrowings ( 8,721 ) ( 237,750 ) 100,840

Repayment of subordinated notes ( 190,000 ) — —

Value of common shares withheld to pay employee income taxes ( 2,948 ) ( 3,116 ) ( 2,844 )

1 unchanged sentence

Cash dividends paid ( 89,917 ) ( 77,496 ) ( 68,951 )

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

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

Net cash used in financing activities $ ( 211,533 ) $ ( 217,402 ) $ ( 186,121 )

Increase (decrease) in cash and cash equivalents 72,947 ( 57,702 ) 28,540

Cash and cash equivalents at beginning of year

8 unchanged sentences

Loans transferred to OREO $ 848 $ 1,008 $ 1,097

Non-mortgage loans transferred to held for sale, net — — 3,890

Right-of-use assets obtained in exchange for lease obligations 1,853 2,718 545

143 unchanged sentences

retail trade;

agriculture, forestry, fishing and hunting;

and professional, scientific, and technical services.

professional, scientific, and technical services;

and agriculture forestry, fishing and hunting.

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

16 unchanged sentences

Commercial, financial and agricultural Discounted Cash Flow Ohio Unemployment, Ohio GDP

PPP loans Other Not Applicable

Overdrafts Historical Loss Experience Not Applicable

15 unchanged sentences

For each segment, a LDA was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows.

The LDA utilized Park's own Federal Financial Institutions Examination Council's ("FFIEC") Call Report data for the commercial, financial and agricultural and residential real estate segments.

Peer data was incorporated into the analysis for the commercial real estate, construction real estate, and consumer segments.

The LDA utilized Park's own Federal Financial Institutions Examination Council's ("FFIEC") Call Report data for the residential real estate segments.

Peer data was incorporated into the analysis for the commercial, financial and agricultural, commercial real estate, construction real estate, and consumer segments.

In creating the DCF model, Park established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.

11 unchanged sentences

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

In all cases, the Frye Jacobs method is

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

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

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

Prepayments and curtailments are

calculated based on Park’s own data utilizing a combination of three-year and four-year averages based on the weighted average remaining life of each segment.

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

21 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 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.

33 unchanged sentences

If the net realizable value is below the carrying value of the loan at the date of transfer, the difference is charged to the allowance for credit losses.

If the net realizable value is above the carrying value of the loan at the date of transfer, any charged-off amounts are recovered and any additional amount is recorded within the line item "OREO valuation markup." These assets are subsequently accounted for at the lower of cost or fair value less costs to sell.

If the net realizable value is above the carrying value of the loan at the date of transfer, any charged-off amounts are recovered and any additional amount is recorded within the line item "Miscellaneous income." These assets are subsequently accounted for at the lower of cost or fair value less costs to sell.

Subsequent changes in the value of real estate are classified as OREO valuation adjustments, are reported as adjustments to the carrying amount of OREO, and recorded within the line item “Miscellaneous income".

5 unchanged sentences

Operating costs after acquisition are expensed as incurred.

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

As of December 31, 2025 and 2024, Park had $ 879,000 and $ 1.2 million, respectively, of foreclosed assets included within “Other assets.”

Mortgage Servicing Rights

36 unchanged sentences

Loss Contingencies

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

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

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

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and an amount or range of loss can be reasonably estimated.

Management does not believe there now are such matters that will have a material effect on the financial statements.

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities.

12 unchanged sentences

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss).

Other comprehensive income (loss) includes unrealized gains and losses on debt securities available for sale, changes in the funded status of the Company’s defined benefit pension plan and unrealized gains and losses on cash flow hedges which are also recognized as separate components of equity.

Comprehensive income consists of net income and other comprehensive income.

Other comprehensive income includes unrealized gains and losses on debt securities available for sale and changes in the funded status of the Company’s defined benefit pension plan which are also recognized as separate components of equity.

Share-Based Compensation

18 unchanged sentences

Accrued settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged.

Accrued settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income.

Accrued settlements on derivatives that do not qualify for hedge accounting are reported in non-

interest income.

Cash flows on hedges are classified in the Consolidated Statements of Cash Flow under the same item as the cash flows of the items being hedged.

26 unchanged sentences

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

This is aligned with the information that the Chief Operating Decision Maker, Park's Chairman and Chief Executive Officer, utilizes when making key operating and resource allocation decisions.

This is aligned with the information that the Chief Operating Decision Maker, Park's Chief Executive Officer and President, utilizes when making key operating and resource allocation decisions.

Adoption of New Accounting Pronouncements and Issued But Not Yet Effective Accounting Standards

1 unchanged sentence

Adoption of New Accounting Pronouncements

ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures:

In March 2022, FASB issued ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures .

ASU 2022-02 eliminated the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors , while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when borrowers are experiencing financial difficulty.

Additionally, the amendments

in this ASU require that public business entities disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost.

Park adopted ASU 2022-02 using the modified retrospective transition method on January 1, 2023.

Park recorded a $ 383,000 increase to the ACL, a $ 303,000 decrease to retained earnings and an $ 80,000 increase to deferred tax assets as of January 1, 2023 for the cumulative effect of adopting ASU 2022-02.

Additionally, as a result of the adoption of this ASU and elimination of the concept of TDRs, total nonperforming loans decreased by $ 20.1 million effective January 1, 2023 and individually evaluated loans decreased by $ 11.5 million.

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

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

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

Improvements to Reportable Segment Disclosures .

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

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

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

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

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

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

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

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

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

In December 2023, FASB issued ASU 2023-09 - Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

ASU 2023-09 requires entities to disclose more detailed information in the reconciliation of their statutory tax rate to their effective tax rate.

ASU 2023-09 also requires entities to disclose more detailed information about income taxes paid, including by jurisdiction.

ASU 2023-09 is effective for public business entities for annual reporting periods beginning after December 15, 2024 and interim periods beginning after December 15, 2025.

The adoption of the provisions of ASU 2023-09 impacted income tax disclosures in Note 21 - Income Taxes.

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

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

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

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

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

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

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

ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326) - Purchased Loans :

In November 2025, FASB issued ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326) - Purchased Loans.

ASU 2025-08 expands the use of the gross-up method to certain acquired loans beyond purchased financial assets with credit deterioration ("PCD" assets).

Under the gross-up method, an allowance for credit losses is recognized at the acquisition date with an offset to the asset's amortized cost basis.

ASU 2025-08 does the following:

(1) applies the gross-up method to acquired non-PCD assets that are purchased seasoned loans and provides criteria for determining whether acquired loans qualify as purchased seasoned loans;

(2) for purchased seasoned loans, eliminates the Day 1 credit loss expense and reduces interest income recognized in subsequent periods as the gross-up method will now apply to these loans;

(3) maintains the guidance for PCD assets;

(4) results in narrow subsequent measurement differences between purchased seasoned loans and PCD assets.

ASU 2025-08 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2026 and is applied on a prospective basis.

Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance.

Park elected to adopt ASU 2025-08 effective January 1, 2025.

The adoption of ASU 2025-08 did not have an impact on Park's existing loan portfolio or allowance for credit losses, but will impact the accounting for future purchased loans.

Issued But Not Yet Effective Accounting Standards

11 unchanged sentences

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

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

In December 2023, FASB issued ASU 2023-09 - Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

ASU 2023-09 will require entities to disclose more detailed information in the reconciliation of their statutory tax rate to their effective tax rate.

ASU 2023-09 also requires entities to disclose more detailed information about income taxes paid, including by jurisdiction.

ASU 2023-09 is effective for public business entities for annual reporting periods beginning after December 15, 2024 and interim periods beginning after December 15, 2025.

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

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

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

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

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

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

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

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

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

8 unchanged sentences

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

ASU 2025-06 - Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40) - Targeted Improvements to the Accounting for Internal - Use Software :

In September 2025, FASB issued ASU 2025-06 - Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40) - Targeted Improvements to the Accounting for Internal -Use Software.

ASU 2025-06 removes all references to prescriptive and sequential software development stages (referred to as project stages) throughout Subtopic-350-40.

An entity is required to start capitalizing software costs when both of the following occur:

(1) Management has authorized and committed to funding the software project and (2) it is probable the project will be completed and the software will be used to perform the function intended.

ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods.

Early adoption is permitted as of the beginning of an annual reporting period.

The amendments in this update may be applied using a prospective transition approach, a modified transition approach that is based on the status of the project and whether software costs were capitalized before the date of adoption, or a retrospective transition approach.

The adoption of the provisions of ASU 2025-06 is not expected to have a material impact on Park's consolidated financial statements.

ASU- 2025-11 - Interim Reporting (Topic 270) - Narrow Scope Improvements :

In December 2025, FASB issued

ASU- 2025-11 - Interim Reporting (Topic 270) - Narrow Scope Improvements.

ASU 2025-11 clarifies the scope, form and content, and disclosures required under ASC 270, Interim Reporting.

The amendments affect all entities that provide interim financial statements and notes in accordance with U.S.

The amendments are effective for interim reporting within annual reporting periods after December 15, 2027.

Early adoption is permitted.

The adoption of the provisions of ASU 2025-11 is not expected to have a material impact on Park's consolidated financial statements.

ASU 2025-12 - Codification Improvements:

In December 2025, FASB issued ASU 2025-12 - Codification Improvements.

ASU 2025-12 issued amendments to the Codification to make incremental improvements to generally accepted accounting principles.

The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance.

The adoption of the provisions of ASU 2025-12 is not expected to have a material impact on Park's consolidated financial statements.

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

1 unchanged sentence

PNB is headquartered in Newark, Ohio.

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

During 2019, Guardian Finance stopped seeking new loans.

PNB provides the following principal services:

12 unchanged sentences

Debt Securities Available-for-Sale

Obligations of U.S.

Government sponsored entities $ 250 $ — $ 1 $ 249

Obligations of states and political subdivisions $ 220,285 $ 1,808 $ 10,270 $ 211,823

5 unchanged sentences

Debt Securities Available-for-Sale

Obligations of U.S.

Government sponsored entities $ 250 $ — $ 1 $ 249

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

8 unchanged sentences

Debt Securities Available-for-Sale

Obligations of U.S.

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

Obligations of states and political subdivisions $ 2,078 $ 33 $ 107,828 $ 10,237 $ 109,906 $ 10,270

6 unchanged sentences

Debt Securities Available-for-Sale

Obligations of U.S.

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

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

3 unchanged sentences

Total $ 85,995 $ 792 $ 700,469 $ 79,293 $ 786,464 $ 80,085

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

At December 31, 2025, Park’s debt security portfolio consisted of $ 688.7 million of securities, $ 500.5 million of which were in an unrealized loss position with unrealized losses of $ 44.1 million.

Of the $ 500.5 million of securities in an unrealized loss position, $ 452.6 million were in an unrealized loss position for 12 months or longer.

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

Government sponsored entities" and "U.S.

Of the $ 44.1 million in unrealized losses, $ 33.2 million were related to Park's "U.S.

Government sponsored entities' asset-backed securities" portfolio.

10 unchanged sentences

Debt Securities Available-for-Sale

Obligations of U.S.Government sponsored entities

Due within one year $ 250 $ 249 2.88 %

Total $ 250 $ 249 2.88 %

Obligations of states and political subdivisions

Due within one year $ 250 $ 250 6.06 %

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

Due five through ten years 79,116 75,408 3.07 %

Due six through ten years $ 102,374 $ 98,360 2.90 %

Due greater than ten years 117,911 113,463 3.91 %

3 unchanged sentences

Corporate debt securities

Due within one year $ 971 $ 979 9.67 %

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

Due one through five years $ 2,000 $ 1,956 7.59 %

Due six through ten years 19,076 18,782 4.29 %

Total $ 21,076 $ 20,738 4.60 %

(1) The tax equivalent yield for obligations of states and political subdivisions includes the effects of a taxable equivalent adjustment using a 21% federal corporate income tax rate.

At December 31, 2024, investment securities with a fair value of $ 471.2 million were pledged for government and public fund deposits, $ 124.1 million were pledged to secure repurchase agreements and $ 3.9 million were pledged as collateral for FHLB advance borrowings.

At December 31, 2025, investment securities with a fair value of $ 459.2 million were pledged for government and public fund deposits and $ 110.3 million were pledged to secure repurchase agreements.

1 unchanged sentence

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

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

AFS debt securities are those debt securities that would be available to be sold in the future in response to the Corporation’s liquidity needs, changes in market interest rates, and asset-liability management strategies, among other reasons.

During 2025, 2024, and 2023, Park sold certain AFS debt securities to take advantage of market conditions as well as to manage the balance sheet to remain below $10 billion in total assets.

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

There were no sales of AFS debt securities during 2022.

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 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.

Other Investment Securities

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Cumulatively, upward adjustments of $ 3.5 million have been recorded as a result of observable price changes.

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

Upward adjustments of $ 2.0 million and $ 571,000 were recorded during the years ended December 31, 2025 and 2024, respectively, as a result of observable price changes.

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

During the year ended December 31, 2025, Park purchased 4,940 shares of FHLB stock with a book value of $ 494,000 and the FHLB repurchased 10,878 shares of FHLB stock with a book value of $ 1.1 million.

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

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

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

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

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

During the year ended December 31, 2023, Park purchased 182,289 shares of FHLB stock with a book value of $ 18.2 million and the FHLB repurchased 116,722 shares of FHLB stock with a book value of $ 11.7 million.

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

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

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

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 the 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 the Consolidated Statements of Income.

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

4 unchanged sentences

$ 1,210,047 $ 1,268,110

PPP loans 847 2,116

Overdrafts 2,103 1,475

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Loans are shown net of deferred origination fees, costs and unearned income of $ 20.1 million at December 31, 2025, and of $ 20.4 million at December 31, 2024, which represented a net deferred income position in both years.

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

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

Overdrawn deposit accounts of $ 1.5 million were reclassified to loans at both December 31, 2024 and December 31, 2023.

At December 31, 2025, there were no purchase accounting adjustments included in loans.

At December 31, 2024, loans included purchase accounting adjustments of $ 669,000 , which represented a net deferred income position.

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

Overdrawn deposit accounts of $ 2.1 million and $ 1.5 million were reclassified to loans at December 31, 2025 and December 31, 2024, respectively.

Credit Quality

8 unchanged sentences

Commercial, financial and agricultural $ 15,817 $ 10 $ 15,827

PPP loans — — $ —

Overdrafts — — —

18 unchanged sentences

Commercial, financial and agricultural $ 24,241 $ — $ 24,241

PPP loans — — $ —

Overdrafts — — —

17 unchanged sentences

Commercial, financial and agricultural $ 13,633 $ 2,184 $ 744

PPP loans — — —

Overdrafts — — —

16 unchanged sentences

Commercial, financial and agricultural $ 18,778 $ 5,463 $ 1,261

PPP loans — — —

Overdrafts — — —

2 unchanged sentences

Commercial 8 — —

Retail — 22 1

Residential real estate:

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

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

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

31 unchanged sentences

Commercial, financial and agricultural $ 1,611 $ 1,595 $ 1,843

PPP loans — — —

Overdrafts — — —

2 unchanged sentences

Commercial 13 38 65

Retail 1 — 13

Residential real estate:

4 unchanged sentences

Consumer 171 134 97

Leases — — 33

Check loans — — —

Total loans $ 3,706 $ 3,588 $ 3,172

10 unchanged sentences

Commercial, financial and agricultural $ 231 $ 6,382 $ 6,613 $ 1,203,434 $ 1,210,047

PPP loans 20 — 20 827 847

Overdrafts — — — 2,103 2,103

25 unchanged sentences

Commercial, financial and agricultural $ 1,901 $ 13,234 $ 15,135 $ 1,252,975 $ 1,268,110

PPP loans 9 — 9 2,107 2,116

Overdrafts — — — 1,475 1,475

12 unchanged sentences

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

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

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

The remaining loans were past due nonaccrual loans.

25 unchanged sentences

Based on the most recent analysis performed, the risk category of loans by class of loans as of December 31, 2025 and December 31, 2024 are detailed in the tables below.

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

Also included in the tables detailing balances are gross charge offs for the years ended December 31, 2025 and December 31, 2024.

December 31, 2025 Term Loans Amortized Cost Basis by Origination Year

8 unchanged sentences

Current period gross charge-offs $ 63 $ 3 $ 156 $ 128 $ 16 $ 1,600 $ 24 $ 1,990

Commercial, financial and agricultural:

Pass $ — $ — $ — $ 547 $ 300 $ — $ — $ 847

Special Mention — — — — — — — —

Substandard — — — — — — — —

Doubtful — — — — — — — —

Total $ — $ — $ — $ 547 $ 300 $ — $ — $ 847

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

Commercial real estate (1)

12 unchanged sentences

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

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

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

Residential Real Estate:

5 unchanged sentences

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

December 31, 2025 Term Loans Amortized Cost Basis by Origination Year

(In thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total

Pass $ 16,041 $ 8,776 $ 3,798 $ 1,674 $ 480 $ 111 $ — $ 30,880

22 unchanged sentences

Current period gross charge-offs $ — $ 104 $ 143 $ 20 $ 1,317 $ 2,872 $ 50 $ 4,506

Commercial, financial and agricultural:

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

Special Mention — — — — — — — —

Substandard — — — — — — — —

Doubtful — — — — — — — —

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

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

Commercial real estate (1)

5 unchanged sentences

Current period gross charge-offs $ — $ 99 $ — $ — $ — $ — $ — $ 99

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

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

Construction real estate:

12 unchanged sentences

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

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

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

Pass $ 17,537 $ 5,868 $ 3,557 $ 1,243 $ 967 $ 315 $ — $ 29,487

33 unchanged sentences

Current period gross charge-offs $ — $ 149 $ 104 $ — $ — $ — $ 253

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

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

Residential Real Estate:

16 unchanged sentences

Current period gross charge-offs — — — — — — 28 28

December 31, 2025 Term Loans Amortized Cost Basis by Origination Year

(In thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total

Total Consumer Loans

16 unchanged sentences

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

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

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

Residential Real Estate:

17 unchanged sentences

Current period gross charge-offs $ 683 $ 3,532 $ 4,596 $ 2,328 $ 809 $ 743 $ 2 $ 12,693

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

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

Performing $ — $ — $ — $ — $ — $ — $ 1,899 $ 1,899

30 unchanged sentences

Year ended December 31, 2025

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

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

Commercial, financial and agricultural:

Commercial, financial and agricultural $ — $ 903 $ 41,531 $ 145 $ 6,468 $ — $ — $ 49,047 4.05 %

PPP loans — — — — — — — — %

Overdrafts — — — — — — — — — %

12 unchanged sentences

Total $ — $ 6,658 $ 46,979 $ 1,623 $ 8,979 $ 3,264 $ 115 $ 67,618 0.84 %

Park had committed to lend additional amounts totaling $ 7.7 million to the borrowers included in the previous table as of December 31, 2025.

Year ended December 31, 2024

2 unchanged sentences

Commercial, financial and agricultural $ — $ 54 $ 19,008 $ 765 $ — $ — $ 19,827 1.56 %

PPP loans — — — — — — — — %

Overdrafts — — — — — — — — %

12 unchanged sentences

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

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

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

The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the years ended December 31, 2025 and 2024:

3 unchanged sentences

Commercial, financial and agricultural ( 4.54 ) % 1.1 0.4

PPP loans — % 0.0 0.0

Overdrafts — % 0.0 0.0

13 unchanged sentences

Year ended December 31, 2024

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

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

Commercial, financial and agricultural:

Commercial, financial and agricultural ( 2.00 ) % 0.8 0.4

PPP loans — % 0.0

Overdrafts — % 0.0 0.0

13 unchanged sentences

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

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

The following tables present the performance of such loans that have been

modified in the last 12 months for the years ended December 31, 2025 and 2024:

Year ended December 31, 2025

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

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

Commercial, financial and agricultural:

Commercial, financial and agricultural $ 48,821 $ — $ — $ 226 $ 49,047

PPP loans — — — —

Overdrafts — — — — —

13 unchanged sentences

Year ended December 31, 2024

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

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

Commercial, financial and agricultural:

Commercial, financial and agricultural $ 15,101 $ 115 $ — $ 4,611 $ 19,827

PPP loans — — — —

Overdrafts — — — — —

15 unchanged sentences

Year ended December 31, 2025

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

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

Commercial, financial and agricultural:

Commercial, financial and agricultural $ 1,083 $ 129 $ —

PPP loans — — — —

Overdrafts — — —

2 unchanged sentences

Commercial — — —

Retail — — — —

Residential real estate:

1 unchanged sentence

Mortgage — — 236

HELOC — — — —

Installment — 20 —

1 unchanged sentence

Check loans — — —

Leases — — — —

Total loans $ 1,258 $ 324 $ 236

Year ended December 31, 2024

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

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

Commercial, financial and agricultural:

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

PPP loans — — — —

Overdrafts — — — —

19 unchanged sentences

During 2025, there were no new loans and advances on existing loans made to these executive officers, directors and related entities of directors totaled $ 313,000 .

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

During 2023, new loans and advances on existing loans were $ 0.4 million and $ 3.8 million, respectively.

These extensions of credit were offset by aggregate principal payments of $ 2.7 million and the removal of loans from the related party listing of $ 74,000 .

During 2024, there were no new loans and advances on existing loans totaled $ 783,000 .

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

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• Forecast model - For each portfolio segment, a LDA was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows.

The LDA analysis utilized Park's own FFIEC Call Report data for the commercial, financial and agricultural and residential real estate portfolio segments.

Peer data was incorporated into the analysis for the commercial real estate, construction real estate, and consumer portfolio segments.

The LDA analysis utilized Park's own FFIEC Call Report data for the residential real estate portfolio segments.

Peer data was incorporated into the analysis for the commercial, financial, and agricultural, commercial real estate, construction real estate, and consumer portfolio segments.

Prior to 2025, only Park's own data was used for the commercial, financial and agricultural segment.

Park updated the LDA in the fourth quarter of 2025.

11 unchanged sentences

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

• Prepayments and curtailments – Prepayments and curtailments are calculated based on Park’s own data utilizing a three-year average.

• Prepayments and curtailments – Prepayments and curtailments are calculated based on Park’s own data utilizing a combination of three-year and four-year averages based on the weighted average remaining life of each segment.

Prior to 2025, only a three-year average was used.

A four-year average was incorporated in 2025 to improve the estimate of prepayments and curtailments rates over the life of loan for longer duration segments.

This analysis is updated annually in the fourth quarter and was last updated in the fourth quarter of 2025.

4 unchanged sentences

In determining the appropriate weighting of scenarios at December 31, 2025, management considered the range of forecasted unemployment as well as a number of economic indicators.

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

While some economic indications are showing stabilization or slight improvement, volatile and low levels of consumer confidence, higher unemployment rates, the impact of elevated inflation for several years with the impact of tariffs being still unknown, the interest rate environment, geopolitical conflict (including conflict related to tariffs), uncertainty regarding fiscal policy of the current political administration, including tariffs, and continued stress in the commercial real estate sector cause uncertainty to the overall economic environment.

Considering these factors, management determined it was appropriate to maintain the existing weighting, and weigh the "most likely" scenario 50% and the "moderate recession" scenario 50% at December 31, 2025.

Changes in forecasts, updates to the LDA model and prepayment and curtailment assumptions, as well as changes in the loan mix, resulted in a one basis point increase in the weighted quantitative allowance from December 31, 2024.

◦ As of December 31, 2024, the "most likely" scenario forecasted Ohio unemployment between 4.48% and 4.60% during the next four quarters.

2 unchanged sentences

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

Changes in forecasts, updates to the LDA model and prepayment and curtailment

assumptions, as well as changes in the loan mix, resulted in a five basis point increase in the weighted quantitative allowance from December 31, 2023.

Qualitative Considerations

18 unchanged sentences

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

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

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

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

Qualitative adjustments amounted to $ 3.2 million and $ 1.2 million at December 31, 2025 and December 31, 2024, respectively.

Qualitative adjustments included $ 561,000 and $ 757,000 at December 31, 2025 and December 31, 2024, respectively, related to Hurricane Helene which impacted borrowers in Park's Carolina region.

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

While Helene impacted this region in October 2024, many borrowers are still navigating the insurance claim process and local businesses are waiting to see the full economic impact on tourist season.

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

Qualitative adjustments also included a $ 2.3 million reserve at December 31, 2025 related to several special purpose mortgage loan programs to assist borrowers in attaining home ownership.

As of December 31, 2025, the total 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 activity in the allowance for credit losses for the years ended December 31, 2025, 2024, and 2023 is summarized in the following tables.

6 unchanged sentences

Net charge-offs (recoveries) 2,138 ( 1,699 ) ( 1,116 ) 110 7,049 ( 1 ) 6,481

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

Provision for (recovery of) credit losses 3,597 ( 3,093 ) ( 532 ) 5,099 6,361 56 11,488

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

3 unchanged sentences

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

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

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

1 unchanged sentence

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

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

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

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

3 unchanged sentences

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

ASU 2022-02 Adoption 222 181 — ( 20 ) — — 383

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

1 unchanged sentence

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

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

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

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

Loans collectively evaluated for impairment in the following tables include all performing loans at December 31, 2024 and December 31, 2023, as well as nonperforming loans internally classified as consumer loans.

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

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

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

(See Note 1-Significant Accounting Policies).

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

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 %

December 31, 2023

(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 $ 4,980 $ 3 $ — $ — $ — $ — $ 4,983

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

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

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

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

Loan balance:

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

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

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

Accruing loans acquired with deteriorated credit quality 22 1,870 626 317 — — 2,835

Total ending loan balance $ 1,295,640 $ 1,875,993 $ 305,099 $ 2,029,524 $ 1,945,936 $ 24,029 $ 7,476,221

ACL as a percentage of loan balance:

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

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

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

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

Total 1.20 % 0.87 % 1.71 % 0.93 % 1.42 % 0.49 % 1.12 %

Loans Held for Sale

5 unchanged sentences

None of these loans were 90 days or more past due or on nonaccrual status at December 31, 2025 or 2024.

During 2022, Park transferred certain commercial loans held for investment, previously nonperforming, with an amortized cost of $ 6.3 million, to the loans held for sale portfolio.

The transferred loans were recorded at the lower of cost or fair value, recording a charge-off in each instance where the fair value of an individual loan was deemed to be below the carrying cost at the time the loans were moved to the held for sale portfolio.

The sale of $ 3.9 million in loans held for sale was subsequently completed and Park recognized a gain on sale of $ 495,000 which is recorded within "Miscellaneous income" on the Consolidated Statements of Income.

The remaining $ 2.4 million in loans held for sale were transferred back to loans held for investment at the lower of cost or fair value.

No non-performing loans were held for sale or sold during 2024 or 2023.

Goodwill and Other Intangible Assets

40 unchanged sentences

Leased assets, net $ 979 $ 1,667

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

Depreciation expense on operating lease assets of $ 625,000 , $ 726,000 , and $ 693,000 was recorded for the years ended December 31, 2025, 2024 and 2023, respectively.

Investments in Qualified Affordable Housing

9 unchanged sentences

Park expects that the commitments as of December 31, 2025 will be funded between 2026 and 2039.

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

During the years ended December 31, 2025, 2024 and 2023, Park recognized amortization expense of $ 8.1 million, $ 8.1 million and $ 8.3 million, respectively, which was included within "Income taxes" on the Consolidated Statements of Income and within "Investment in qualified affordable housing tax credits amortization" on the Consolidated Statements of Cash Flows.

For the years ended December 31, 2025, 2024 and 2023, Park recognized tax credits and other benefits from its affordable housing tax credit investments of $ 10.6 million, $ 10.0 million and $ 9.8 million, respectively.

4 unchanged sentences

Commercial real estate $ 91 $ 938

Construction real estate 638 —

Total OREO $ 729 $ 938

2 unchanged sentences

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

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

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

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

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

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

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

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

As of December 31, 2024 and December 31, 2023, Park had $ 1.2 million and $ 1.1 million in other repossessed assets which are included in "Other assets" on the Consolidated Balance Sheets.

As of December 31, 2025 and 2024, Park had $ 0.9 million and $ 1.2 million in other repossessed assets which are included in "Other assets" on the Consolidated Balance Sheets.

Loan Servicing

41 unchanged sentences

Operating cash flows from operating leases (1)

$ 1,973 $ 2,530 $ 3,630

ROU assets obtained in exchange for new operating lease liabilities $ 1,853 $ 2,718 $ 545

Reductions to ROU assets resulting from reductions to lease obligations $ ( 1,819 ) $ ( 1,970 ) $ ( 3,062 )

(1) Includes a tenant improvement allowance of $524,000 related to the reimbursement of leasehold expenditures for the year ended December 31, 2025 .

Park's operating leases had a weighted average remaining term of 9.3 years and 9.8 years at December 31, 2025 and 2024, respectively.

6 unchanged sentences

Total lease liabilities $ 17,063

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

At December 31, 2025 and 2024, non-interest bearing and interest bearing deposits were as follows:

4 unchanged sentences

The table below details the maturities of time deposits at December 31, 2025.

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

Time deposits below include $ 17.0 million of BID CD deposits.

(In thousands)

12 unchanged sentences

These borrowings were collateralized with U.S.

government sponsored entities' asset-backed securities with a fair value of $ 124.1 million and $ 180.8 million at December 31, 2024 and December 31, 2023, respectively.

government sponsored entities' asset-backed securities

with a fair value of $ 110.3 million and $ 124.1 million at December 31, 2025 and December 31, 2024, respectively.

Declines in the value of the collateral would require Park to pledge additional securities.

15 unchanged sentences

$ 81,711 $ 90,432

FHLB advances — 220,000

Other borrowings — —

Total short-term borrowings $ 81,711 $ 90,432

The outstanding balances for all short-term borrowings as of December 31, 2025 and 2024 and the weighted-average interest rates as of and paid during each of the years then ended were as follows:

(In thousands) Repurchase agreements FHLB Advances

(In thousands) Repurchase agreements Other borrowings

Ending balance $ 81,711 $ —

10 unchanged sentences

Paid during the year 1.82 % 5.58 %

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

At December 31, 2024 and December 31, 2023, $ 3.9 million and $ 5.2 million, respectively, of investment securities were pledged as collateral for FHLB advances.

For the years ended December 31, 2025 and December 31, 2024, other borrowings included overnight FHLB and FRB borrowings and other overnight borrowings executed as part of the annual testing of our contingency funding plan.

Additionally, for the year ended December 31, 2024, other borrowings included overnight FHLB borrowings utilized to fund the balance sheet.

At December 31, 2024, $ 3.9 million of investment securities were pledged as collateral for FHLB advances.

No investment securities were pledged as collateral for FHLB advances at December 31, 2025.

At December 31, 2025 and December 31, 2024, $ 2,382 million and $ 2,112 million, respectively, of commercial real estate and residential mortgage loans were pledged under a blanket agreement to the FHLB by PNB.

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Subordinated Notes

As part of the acquisition of Vision's parent bank holding company ("Vision Parent") on March 9, 2007, Park became the successor to Vision Parent under (i) the Amended and Restated Trust Agreement of Vision Bancshares Trust I (the “Trust”), dated as of December 5, 2005, (ii) the Junior Subordinated Indenture, dated as of December 5, 2005, and (iii) the Guarantee Agreement, also dated as of December 5, 2005.

As part of the acquisition of Vision Bank's parent bank holding company ("Vision Parent") on March 9, 2007, Park became the successor to Vision Parent under (i) the Amended and Restated Trust Agreement of Vision Bancshares Trust I (the “Trust”), dated as of December 5, 2005, (ii) the Junior Subordinated Indenture, dated as of December 5, 2005, and (iii) the Guarantee Agreement, also dated as of December 5, 2005.

On December 1, 2005, Vision Parent formed a wholly-owned Delaware statutory business trust, Vision Bancshares Trust I (“Trust I”), which issued $ 15.0 million of Trust I's floating rate preferred securities (the “Trust Preferred Securities”) to institutional investors.

These Trust Preferred Securities qualify as Tier I capital under FRB guidelines.

All of the common securities of Trust I are owned by Park.

The proceeds from the issuance of the common securities and the Trust Preferred Securities were used by Trust I to purchase $ 15.5 million of junior subordinated notes, which, following the cessation of LIBOR on June 30, 2023, carry a floating rate based on three-month CME Term SOFR plus 174 basis points.

The junior subordinated notes represent the sole asset of Trust I.

The Trust Preferred Securities accrue and pay distributions at a floating rate of three-month CME Term SOFR plus 174 basis points per annum.

The Trust Preferred Securities are mandatorily redeemable upon maturity of the junior subordinated notes in December 2035, or upon earlier redemption as provided in the junior subordinated notes.

These Trust Preferred Securities qualified as Tier I capital under FRB guidelines.

All of the common securities of Trust I were owned by Park.

The proceeds from the issuance of the common securities and the Trust Preferred Securities were used by Trust I to purchase $ 15.5 million of junior subordinated notes, which, following the cessation of LIBOR on June 30, 2023, carried a floating rate based on three-month CME Term SOFR plus 174 basis points.

The junior subordinated notes represented the sole asset of Trust I.

The Trust Preferred Securities accrued and paid distributions at a floating rate of three-month CME Term SOFR plus 174 basis points per annum.

The Trust Preferred Securities were mandatorily redeemable upon maturity of the junior subordinated notes in December 2035, or upon earlier redemption as provided in the junior subordinated notes.

Since December 30, 2010, Park has had the right to redeem the junior subordinated notes purchased by Trust I in whole or in part.

As specified in the indenture, if the junior subordinated notes are redeemed prior to maturity, the redemption price will be the principal amount, plus any unpaid accrued interest.

In accordance with U.S.

GAAP, Trust I is not consolidated with Park’s financial statements, but rather the subordinated notes are reflected as a liability.

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

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

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

At December 31, 2024 and 2023, the Subordinated Notes, net of unamortized issuance costs, totaled $ 174.7 million and $ 174.1 million, and qualify as Tier 2 capital for Park under the Federal Reserve Board 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 $ 174.7 million and qualified as Tier 2 capital for Park under the Federal Reserve Board capital adequacy rules.

Park uses certain derivative financial instruments (or "derivatives") to meet the needs of its customers while managing the interest rate risk associated with certain transactions.

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The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

Borrowing Derivatives :

At each of December 31, 2024 and 2023 , Park had no borrowing derivatives.

Loan Derivatives :

In conjunction with the Carolina Alliance acquisition, Park acquired interest rate swaps related to certain commercial loans.

1 unchanged sentence

These interest rate swaps had a notional amount totaling $ 13.1 million and $ 15.4 million at December 31, 2025 and December 31, 2024, respectively.

All of the Company's interest rate swaps were determined to be fully effective during the years ended December 31, 2024 and 2023 .

As such, no amount of ineffectiveness has been included in net income.

Therefore, the aggregate fair value of the swaps is recorded in "Other assets" and "Other liabilities" with changes in fair value recorded in "Other comprehensive income (loss)".

The amount included in "Accumulated other comprehensive loss, net of tax" would be reclassified to net income should the hedges no longer be considered effective.

During the year ended December 31, 2022, Park recognized expense of $ 66,000 , or $ 52,000 , net of taxes, as the result of the early termination of a borrowing interest rate swap.

No expense related to early termination was recognized during the years ended December 31, 2024 and 2023 .

Park expects the outstanding hedges to remain fully effective during the remaining respective terms of the swaps.

While these derivatives represent economic hedges, they do not qualify as hedges for accounting purposes.

The aggregate fair value of the interest rate swaps is recorded in "Other assets" and "Other liabilities" with changes in fair value recorded in "Miscellaneous Other Income" and "Miscellaneous Other Expense".

During the years ended December 31, 2025 and 2024, no net gain or loss was recorded related to these interest rate swaps.

Summary information about Park's interest rate swaps as of December 31, 2025 and December 31, 2024 was as follows:

6 unchanged sentences

Weighted average maturity (years) 4.9 5.4

Unrealized losses $ — $ —

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

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

The following table reflects the interest rate swaps included in the Consolidated Balance Sheets as of December 31, 2025 and 2024:

61 unchanged sentences

As of December 31, 2025, an aggregate of 182,384 PBRSUs are expected to vest.

A summary of awards that vested during the twelve months ended December 31, 2024 and 2023 follows:

Twelve Months Ended

A summary of awards that vested during the years ended December 31, 2025 and 2024 follows:

PBRSUs and TBRSUs vested 51,833 58,056

20 unchanged sentences

Interest cost 5,911 6,443

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

Actuarial gain ( 297 ) ( 9,804 )

Benefits paid ( 6,648 ) ( 38,239 )

1 unchanged sentence

Funded status at end of year (fair value of plan assets less benefit obligation) $ 127,700 $ 121,238

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

The increase in the projected benefit obligation ("PBO") from $ 104.5 million as of December 31, 2024 to $ 110.0 million as of December 31, 2025, was largely the result of an additional year of plan progression, including an additional year of service, interest on the liability, and payments from the plan.

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

16 unchanged sentences

Rate of compensation increase

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

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

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

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

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

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

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

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

Interest crediting rate 4.64 % 3.89 % 4.07 %

Under age 25 7.50 % 7.50 % 7.50 %

Ages 25-29 7.00 % 7.00 % 7.00 %

Ages 30-34 6.75 % 6.75 % 6.75 %

Ages 35-39 6.00 % 6.00 % 6.00 %

Ages 40-44 5.25 % 5.25 % 5.25 %

Ages 45-54 4.75 % 4.75 % 4.75 %

Ages 55-69 3.75 % 3.75 % 3.75 %

Ages 70 and over 3.00 % 3.00 % 3.00 %

Interest crediting rate (2025 rate is for 2026 only) 4.87 % 4.64 % 3.89 %

Interest crediting rate (2027 and beyond) 4.70 % N/A N/A

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

8 unchanged sentences

Accumulated other comprehensive income $ 19,607 $ 16,754

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

Using actuarial measurement dates of December 31 for 2025, 2024 and 2023, components of net periodic benefit income and other amounts recognized in other comprehensive income were as follows:

(In thousands) 2025 2024 2023 Affected Line Item in the Consolidated Statements of Income

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

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

Service cost $ ( 6,526 ) $ ( 6,916 ) $ ( 6,236 ) Employee benefits

4 unchanged sentences

Net periodic benefit income $ 2,850 $ 8,495 $ 1,336

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

Net actuarial gain $ 3,563 $ 25,166 $ 10,549

Amortization of actuarial gain — ( 6,148 ) —

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

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

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

Amortization of prior service cost 48 48 48

Total recognized in other comprehensive income 3,611 19,066 10,597

Total recognized in net benefit income and other comprehensive income $ 6,461 $ 27,561 $ 11,933

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

2 unchanged sentences

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

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

There was no pension settlement gain recognized during the years ended December 31, 2025 or December 31, 2023.

The weighted average assumptions used to determine net periodic benefit income for the years ended December 31, 2025, 2024 and 2023 are listed below:

2 unchanged sentences

Rate of compensation increase

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

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

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

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

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

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

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

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

Interest crediting rate 3.89 % 4.07 % N/A

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

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

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

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

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

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

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

Ages 70 and over (for 2024 and 2025) 3.00 % 3.00 % N/A

Interest crediting rate 4.64 % 3.89 % 4.07 %

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

30 unchanged sentences

Total SERP expense $ 1,618 $ 1,955 $ 1,791

Park's pre-tax income for the year ended December 31, 2025 was as follows:

(In thousands) 2025

Domestic $ 221,323

Total pre-tax income $ 221,323

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

December 31, (In thousands) 2025 2024 2023

Current tax expense (benefit)

$ 31,984 $ 23,905 $ 18,118

2,285 1,360 1,190

Amortization of qualified affordable housing projects and historic tax credits 8,519 8,449 8,265

Deferred tax expense (benefit)

$ ( 1,439 ) $ ( 517 ) $ ( 708 )

Total income tax expense (benefit)

$ 39,064 $ 31,837 $ 25,675

2,186 1,468 1,195

Total $ 41,250 $ 33,305 $ 26,870

Income taxes paid for the year ended December 31, 2025 were as follows:

(In thousands) 2025

Federal $ 33,580

Total $ 36,043

(1) There were no payments made to an individual jurisdiction that exceeded 5% of the Company's total income taxes paid during the year ended December 31, 2025.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Significant components of the Corporation’s deferred tax assets and liabilities are as follows:

Significant components of the Corporation’s

deferred tax assets and liabilities are as follows:

December 31 (In thousands) 2025 2024

16 unchanged sentences

Deferred investment income — 1,226

Net deferred loan fees 266 —

Pension Plan 22,527 21,776

10 unchanged sentences

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

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

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

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

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

December 31, (In thousands) 2024 2023 2022

Currently payable

$ 23,905 $ 18,118 $ 22,574

1,360 1,190 1,180

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

( 517 ) ( 708 ) 464

At December 31, 2025, management determined that it was required to establish a $ 0.7 million state tax valuation allowance against certain deferred tax assets generated by one of its non-bank subsidiaries since it was not more likely than not that the deferred tax assets would be fully utilized in future periods.

A v aluation allowance of $ 0.6 million was required for the year ended December 31, 2024.

The following is a reconciliation of income tax expense to the amount computed at the statutory federal corporate income tax rate of 21 % for the year ended December 31, 2025.

(Dollars in thousands) Amount Percent

Statutory federal corporate income tax rate $ 46,478 21.0 %

Changes in rates resulting from:

Investments in qualified affordable housing projects, net of tax benefits ( 2,241 ) ( 1.1 ) %

Nontaxable or nondeductible items:

Tax exempt interest income, net of disallowed interest ( 2,056 ) ( 0.9 ) %

Bank owned life insurance ( 1,388 ) ( 0.6 ) %

KSOP dividend deduction ( 1,096 ) ( 0.5 ) %

Other nontaxable or nondeductible items 9 — %

Other reconciling items:

Compensation-related items ( 158 ) ( 0.1 ) %

Change in tax laws or rates enacted during the period — — %

Changes in unrecognized tax benefits ( 25 ) — %

State income taxes, net of federal benefit (1)

Total $ 41,250 18.6 %

(1) State tax in North Carolina, South Carolina, Kentucky, and California make up the majority (greater than 50%) of the tax effect in this category.

The following is a reconciliation of income tax expense to the amount computed at the statutory federal corporate income tax rate of 21 % for the years ended December 31, 2024 and 2023.

2024 2023 2022

Statutory federal corporate income tax rate 21.0 % 21.0 %

22 unchanged sentences

Park does not expect the total amount of unrecognized tax benefits to significantly increase or decrease during 2026.

The expense (income) related to interest and penalties recorded on unrecognized tax benefits in the Consolidated Statements of Income for the years ended December 31, 2024, 2023, and 2022 was $ 1,500 , $ 1,500 , and $( 56,000 ), respectively.

The income (expense) related to interest and penalties recorded on unrecognized tax benefits in the Consolidated Statements of Income for the years ended December 31, 2025, 2024, and 2023 was $ 2,000 , $( 1,500 ), and $( 1,500 ), respectively.

The amount accrued for interest and penalties at December 31, 2025, 2024 and 2023 was $ 10,500 , $ 12,500 and $ 11,000 , respectively.

6 unchanged sentences

Other comprehensive income (loss) components, net of income tax, are shown in the following table for the years ended December 31, 2025, 2024 and 2023.

(in thousands) Changes in Pension Plan assets and benefit obligations Unrealized (losses) gains on AFS debt securities Unrealized net holding loss on cash flow hedge Total

(in thousands) Changes in Pension Plan assets and benefit obligations Unrealized (losses) gains on AFS debt securities Total

Beginning balance at January 1, 2025 $ 16,754 $ ( 62,929 ) $ ( 46,175 )

9 unchanged sentences

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

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

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

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

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

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

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

The following table provides information concerning amounts reclassified out of accumulated other comprehensive income (loss) for the years ended December 31, 2025, 2024 and 2023:

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

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

(In thousands) 2025 2024 2023

Amortization of defined benefit pension items

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

Amortization of prior service cost $ 48 $ 48 $ 48 Other components of net periodic pension benefit income

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

7 unchanged sentences

Net of income tax $ 1,777 $ 415 $ 6,221 Net income

Unrealized net holding loss on cash flow hedge

Loss due to early termination of borrowing interest rate swap $ — $ — $ 66 Miscellaneous expense

Loss before income taxes — — 66 Income before income taxes

Income tax effect — — 14 Income taxes

Net of income tax $ — $ — $ 52 Net income

Earnings Per Common Share

15 unchanged sentences

Park awarded 49,350 , 59,165 and 54,698 PBRSUs to certain employees during the years ended December 31, 2025, 2024 and 2023, respectively.

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

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

During the years ended December 31, 2023 and December 31, 2025, Park repurchased 199,000 and 120,000 common shares, respectively, to fund the PBRSUs, TBRSUs and common shares awarded to directors of Park and to directors of PNB (and its divisions) as well as pursuant to Park's previously announced stock repurchase authorizations.

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

Dividend Restrictions

6 unchanged sentences

The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those financial instruments.

The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments, including the amount of collateral obtained, if deemed necessary by the Corporation.

Since many of the loan commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

6 unchanged sentences

Commitments to originate new loans are generally made for periods of 180 days or less.

The Corporation grants retail, commercial and commercial real estate loans to customers primarily located in Ohio, Kentucky, North Carolina and South Carolina with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies.

The Corporation evaluates each customer’s creditworthiness on a case-by-case basis.

The amount of collateral obtained, if deemed necessary by the Corporation upon the extension of credit, is based on management’s credit evaluation of the customer.

Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and real estate.

Although the Corporation has a diversified loan portfolio, a substantial portion of the borrowers’ ability to honor their contracts is dependent upon the economic conditions of the borrowers' respective geographic locations and industries.

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

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

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

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Investment securities:

Obligations of U.S.

Government sponsored entities $ — $ 249 $ — $ 249

Obligations of states and political subdivisions $ — $ 211,823 $ — $ 211,823

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Investment securities:

Obligations of U.S.

Government sponsored entities $ — $ 249 $ — $ 249

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

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

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

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

For equity securities where quoted prices or market prices of similar securities are not available, fair values are calculated using alternative valuation techniques, based on unobservable inputs (Level 3).

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

Mortgage interest rate lock commitments:

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Balance at January 1, 2025 $ 6,664 $ 603 $ ( 103 )

Transfers into (out of) level 3, net — — —

Transfers into level 3 404 — —

Total gains / (losses)

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Balance at January 1, 2024 $ 6,349 $ 473 $ ( 123 )

Transfers into level 3 11 — —

Transfers into (out of) level 3, net — — —

Total gains / (losses)

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Balance at December 31, 2024 $ 6,664 $ 603 $ ( 103 )

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

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

One corporate debt security with a fair value of $ 404,000 as of December 31, 2025, was transferred out of Level 2 and into Level 3 because of a lack of observable market data for this investment.

Level 3 corporate debt securities consisted of two debt securities at December 31, 2025 and a single debt security at December 31, 2024, which were valued using a discounted cash flow calculation.

Significant unobservable inputs included a credit spread assumption which ranged from 3.67% and 4.45% at December 31, 2025, and was 3.67% at December 31, 2024.

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

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

Adjustments are routinely made in the appraisal

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

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

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

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OREO properties are carried at fair value if a devaluation has been taken with respect to the property's value subsequent to the initial measurement.

There were no OREO properties recorded at fair value as of December 31, 2025.

Fair Value Measurements at December 31, 2025 Using:

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Nonaccrual, individually evaluated, collateral-dependent loans recorded at fair value:

Commercial, financial and agricultural (1)

$ — $ — $ 3,674 $ 3,674

Commercial real estate — — 370 370

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MSRs $ — $ 35 $ — $ 35

OREO recorded at fair value:

Commercial real estate $ — $ — $ 938 $ 938

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

(1) Includes commercial, financial and agricultural loans in which real estate collateral was obtained subsequent to loan origination.

Fair Value Measurements at December 31, 2024 Using:

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MSRs totaled $ 13.7 million at December 31, 2025.

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

Of this $ 13.7 million MSR carrying balance, $ 35,000 was recorded at fair value and included a valuation allowance of $ 3,000 .

The remaining $ 13.7 million was recorded at cost, as the fair value exceeded cost at December 31, 2025.

At December 31, 2024, MSRs totaled $ 13.9 million.

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

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

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

The income related to MSRs carried at fair value for the years ended December 31, 2024, 2023 and 2022 was $ 0.1 million, $ 0.1 million and $ 1.4 million, respectively.

The income related to MSRs carried at fair value for the years ended December 31, 2025, 2024 and 2023 was $ 16,000 , $ 75,000 and $ 88,000 , respectively.

Total OREO held by Park at December 31, 2025 and 2024 was $ 0.7 million and $ 0.9 million, respectively.

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

The net income (expense) related to OREO fair value

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

At December 31, 2025, there was no OREO held by Park that was carried at fair value due to fair value adjustments made subsequent to the initial OREO measurement.

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

The expense related to OREO fair value adjustments was $ 60,000 and $ 493,000 for the years ended December 31, 2025 and 2023, respectively.

There was no expense related to OREO carried at fair value during the year ended December 31, 2024.

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2025 and December 31, 2024:

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Nonaccrual, individually evaluated, collateral-dependent loans:

Commercial, financial and agricultural $ 3,674 Sales comparison approach Adj to comparables 5.0 % - 46.0 % ( 25.5 %)

Commercial real estate $ 370 Sales comparison approach Adj to comparables 0.0 % - 10.0 % ( 3.8 %)

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Residential real estate $ 17 Sales comparison approach Adj to comparables 11.9 % - 38.9 % ( 25.4 %)

Income approach Capitalization rate 6.3 % ( 6.3 %)

Other real estate owned:

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

Cost approach Entrepreneurial profit 5.0 % ( 5.0 %)

Cost approach Accumulated depreciation 50.0 % ( 50.0 %)

December 31, 2024

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

Income approach Capitalization rate 6.3 % ( 6.3 %)

Other real estate owned:

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At December 31, 2025 and December 31, 2024, Park had Partnership Investments with a NAV of $ 39.3 million and $ 32.6 million, respectively.

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

commitments related to these Partnership Investments.

At December 31, 2025 and December 31, 2024, Park had $ 12.6 million and $ 17.6 million in unfunded commitments related to these Partnership Investments.

For the years ended December 31, 2025, 2024 and 2023, Park recognized income of $ 1.2 million, $ 0.5 million and $ 0.4 million, respectively, related to these Partnership Investments.

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

Subordinated notes 189,651 — 185,599 — 185,599

Derivative financial instruments - assets:

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Segment Information

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

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

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

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Net income $ 180,073 $ 151,420 $ 126,734

Other comprehensive income (loss) (1)

Other comprehensive income (1)

33,436 20,016 36,203

Comprehensive income $ 213,509 $ 171,436 $ 162,937

(1) See Consolidated Statements of Comprehensive Income for other comprehensive income (loss) detail.

(1) See Consolidated Statements of Comprehensive Income for other comprehensive income detail.

Statements of Cash Flows

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(Gain) loss on equity securities, net ( 4,074 ) ( 1,872 ) 151

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

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

Decrease (increase) in other assets 1,573 ( 23 ) 828

Decrease in other liabilities ( 3,148 ) ( 1,770 ) ( 2,752 )

Net cash provided by operating activities 115,047 87,082 103,355

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Repurchase of common shares to be held as treasury shares ( 20,134 ) — ( 23,017 )

Cash payment for fractional shares — — ( 2 )

Repayment of subordinated notes ( 190,000 ) — —

Value of common shares withheld to pay employee income taxes ( 2,948 ) ( 3,116 ) ( 2,844 )

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Pension settlement gain (2)

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

OREO valuation markup 30 60 12,039

Loss on the sale of debt securities, net (2)

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Other service income :

Other service income includes income from (1) the sale and servicing of loans sold to the secondary market, (2) incentive income from third-party credit card issuers, and (3) loan customers for various loan-related activities and services.

Income related to the sale and servicing of loans sold to the secondary market is included within "Other service income", but is not within the scope of ASC 606.

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Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, net of card network fees, concurrently with the transaction processing services provided to the cardholder.

Gain or loss on sale of OREO, net :

The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of delivery of an executed deed.

When Park finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform the buyer's obligation under the contract and whether collectability of the transaction price is probable.

Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer.

In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.

OREO valuation markup :

The Corporation records an OREO valuation markup immediately prior to the transfer of a loan to OREO when the fair market value of the property less costs to sell exceeds the principal balance of the loan.

Subsequent Events (Unaudited)

On February 1, 2026 , First Citizens Bancshares, Inc., a Tennessee corporation (“First Citizens”) merged into Park, with Park continuing as the surviving corporation.

Immediately following the merger, First Citizens National Bank, a national banking association and a wholly-owned subsidiary of First Citizens, was merged into PNB, with PNB as the surviving bank.

As of January 31, 2026, First Citizens had $ 2.6 billion in total assets, $ 1.6 billion in total loans and leases, and $ 2.2 billion in total deposits.

The acquisition was valued at $ 324.1 million and resulted in Park issuing 1,988,131 Park common shares as consideration for the First Citizens common stock acquired from First Citizens shareholders.

The assets and liabilities of First Citizens' will be recorded on Park's consolidated balance sheet at their preliminary estimated fair values as of February 1, 2026, the acquisition date, and First Citizens' results of operations will be included in Park's consolidated statement of income from that date.

The initial accounting and determination of the fair values of the assets acquired and liabilities assumed in the acquisition was incomplete at the time of the filing of Park's Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K") due to the timing of the closing of the acquisition in relation to the deadline for the filing of Park's 2025 Form 10-K.

A more complete disclosure of the business combination is expected to be reported in Park's Quarterly Report on Form 10-Q for the quarterly period ending March 31, 2026.

For the year ended December 31, 2025, Park recorded merger-related expenses of $ 1.6 million associated with the First Citizens acquisition.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data