Park National Q2 net income rises 22% on loan growth

Overview

• U.S. regional bank's Q2 net income rose 22% yr/yr, driven by loan and deposit growth

• Q2 diluted EPS climbed nearly 9% yr/yr to $3.23, including merger-related expenses

• Loan and deposit growth in Q2 mainly reflects First Citizens acquisition impact

Outlook

• Company expects First Citizens systems conversion to complete in third qtr

• Park National says systems conversion will support long-term growth strategy

Result Drivers

• FIRST CITIZENS ACQUISITION - Loan and deposit growth in Q2 was mainly due to the acquisition of First Citizens Bancshares

• MERGER-RELATED EXPENSES - Q2 results included $4.1 mln in expenses related to the First Citizens merger

• HIGHER NET INTEREST INCOME - Net interest income rose 27% yr/yr, reflecting increased loan balances and yields

Company press release: ID:nGNX95wGln

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Park National Corp is $184.00, about 2.4% below its July 24 closing price of $188.58

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• July 27 - Ohio Valley Banc Q2 net interest income rises on higher average earning assets

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• July 27 - HBT Financial Q2 adjusted EPS beats on CNB acquisition; raises dividend

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)