Park National Corporation Reports Second Quarter 2010 Financial Results And Declares Quarterly Cash Dividend
Exercise of common share warrants and issuance of common shares
Over the past five quarters, common shares outstanding have increased by 1,228,172 or 8.8 percent, as a result of capital raising activities. During 2009, Park sold 904,072 common shares and Series A and Series B Common Share Warrants covering an aggregate of 500,000 common shares at a weighted average price per share of $61.20 for gross proceeds of $55.3 million. Net of selling expenses and professional fees, Park raised $53.5 million of common equity from these capital raising activities in 2009. During the second quarter of 2010, 324,100 common shares were issued upon the exercise of the Series A and Series B Common Share Warrants at a price of $67.75 per common share. Net of all expenses, Park raised an additional $21.3 million of common equity from the sale of these 324,100 common shares. Series B Common Share Warrants covering 175,900 common shares, with an exercise price of $67.75 per common share and an expiration date of October 30, 2010, remain outstanding.
Loan portfolio information
Park's loan portfolio experienced solid growth during the 2010 second quarter, increasing $58.7 million to end the quarter at $4.66 billion. For the first half of 2010, Park's loans have increased by $15.6 million. Park's Ohio-based operations experienced loan growth of approximately $61.5 million and $20.9 million in the second quarter and first half of 2010, respectively.Net charge-offs for the first half of 2010 were $25.8 million, or an annualized 1.13 percent of average loans outstanding. This compares to $23.4 million, or an annualized 1.03 percent of average loans outstanding, for the same period in 2009. Park's loan loss provision for the first half of 2010 was $29.8 million, compared to $28.1 million for the same period in 2009. Of the $29.8 million loan loss provision, $20.2 million was recorded at Vision Bank, with the remaining $9.6 million recorded within Park's Ohio-based operations. Overall, the allowance for loan losses increased by $4.0 million during the first half of 2010, ending the period at $120.7 million, or 2.59 percent of period-end loans.
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