Park National Corporation Releases Q2 2026 Financial Results and Details Non-GAAP Performance Metrics

Summary of Financial Results Announcement

Headquartered in Newark, Ohio, Park National Corporation, a financial holding company, disclosed its financial results for the three- and six-month periods ended June 30, 2026. The announcement was made public via a news release on July 27, 2026, and filed as a Current Report with the Securities and Exchange Commission. The disclosure covers performance metrics for the quarter ending June 30, 2026, along with cumulative figures for the first half of 2026, including comparative data for the same periods in 2025 and the first quarter of 2026.

The filing highlights that Park’s management uses both U.S. GAAP and non-U.S. GAAP financial measures to assess company performance. Management believes this dual approach offers readers a more comprehensive view of operational trends and financial position. Detailed reconciliations between U.S. GAAP and non-U.S. GAAP measures are included in the Financial Results News Release attached as an exhibit to the current report.

Framework for Non-U.S. GAAP Performance Metrics

Park National disclosed that management reviews several non-U.S. GAAP financial metrics to evaluate performance, such as annualized return on average tangible equity, annualized return on average tangible assets, tangible equity to tangible assets ratio, tangible book value per common share, and pre-tax, pre-provision net income. The company provided calculation methodologies for each metric, enabling investors to understand how these supplementary measures are derived from U.S. GAAP data.

The filing states management believes these non-U.S. GAAP measures offer additional insights that aid in analyzing Park’s operating performance. These metrics enhance comparability across periods and facilitate benchmarking with peer financial and bank holding companies by excluding certain acquisition-related non-operational effects. The company emphasizes these measures supplement rather than replace U.S. GAAP financial metrics.

Calculations for Return on Tangible Equity and Assets

Park outlined the calculation of annualized return on average tangible equity as net income divided by average tangible equity for the period. Average tangible equity is computed by subtracting average goodwill and other intangible assets from average shareholders’ equity. This method excludes acquisition-related intangible assets, providing a clearer view of returns on tangible shareholder capital.

Similarly, annualized return on average tangible assets is calculated by dividing net income by average tangible assets, where average tangible assets equal average total assets less average goodwill and intangible assets. Using tangible measures helps investors assess returns on a normalized basis, excluding acquisition accounting effects that can distort equity and asset bases amid banking sector consolidations.

Tangible Equity Ratio and Tangible Book Value per Share

The tangible equity to tangible assets ratio is calculated by dividing tangible equity by tangible assets at period end. Tangible equity equals total shareholders’ equity less goodwill and intangible assets, while tangible assets equal total assets less goodwill and intangible assets. This ratio measures the company’s capital strength on a tangible basis, helping investors evaluate the cushion of tangible assets supporting obligations.

Tangible book value per common share is derived by dividing tangible equity by the number of common shares outstanding at period end. This metric is widely used by investors and analysts to value financial institutions on a per-share basis without distortion from acquired intangible assets. Park provides this normalized valuation metric to reflect intrinsic book value per share.

Pre-Tax, Pre-Provision Net Income Metric

Park defines pre-tax, pre-provision net income as net income plus income taxes and provision for credit losses for the period. Management reviews this non-U.S. GAAP measure to evaluate underlying profitability before credit quality changes and tax impacts. It highlights core operational earnings by isolating credit provisioning and tax effects, which can vary due to economic and regulatory factors.

The company includes a reconciliation of this measure from net income in the news release, enabling investors to understand the influence of credit provisioning and taxes on reported earnings across reporting periods.

Fully Taxable Equivalent Basis Adjustments

Park uses fully taxable equivalent (FTE) basis measures for interest income, yields, and ratios as non-U.S. GAAP metrics. FTE interest income adjusts for tax-exempt income, providing a clearer view of interest margin comparability across taxable and tax-exempt sources. Calculations assume a federal corporate tax rate of 21%.

The filing includes a reconciliation of FTE interest income in the news release to comply with SEC Regulation G. Presenting net interest income on an FTE basis allows meaningful comparisons of interest margin performance regardless of changes in tax-exempt asset proportions, a common practice among financial institutions with significant municipal bond holdings.

Factors Affecting Comparability of Results

Park disclosed that certain revenues, expenses, and taxes may be influenced by items considered outside ordinary banking activities or unusually large, such as merger and acquisition costs and items related to former Vision Bank loan relationships. Management may exclude these from comparability analyses to better reflect ongoing operations.

The company clarifies that volatility alone does not classify an item as impacting comparability. Ordinary banking activities like credit loss provisions, equity securities gains or losses, and asset valuation adjustments are generally excluded from such items. This approach helps investors distinguish recurring earnings components from non-recurring ones.

Regulatory Compliance and Reconciliation Details

Park confirmed that its non-U.S. GAAP financial measures comply with SEC Regulation G, requiring reconciliations to comparable U.S. GAAP measures. The company provides reconciliations for average tangible equity, average tangible assets, tangible equity, tangible assets, and pre-tax, pre-provision net income in the Financial Results News Release.

The filing stresses these non-U.S. GAAP measures are supplemental and not substitutes for U.S. GAAP figures. By offering full reconciliations, Park ensures transparency and allows investors to bridge reported results with management’s performance metrics.

Scope and Comparative Financial Data

Park presented comparative financial information and non-U.S. GAAP metrics for multiple periods, including the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, as well as for the six months ended June 30, 2026, and June 30, 2025. This multi-period data enables investors to analyze year-over-year and sequential trends in profitability, capital ratios, and operational performance.

The comprehensive disclosure equips shareholders and analysts with detailed data to evaluate Park’s financial trajectory and management effectiveness relative to prior periods and peer institutions, facilitating thorough reviews of second quarter and first-half 2026 results.