Park National (PRK) 8-K Park National Corporation reports year-end 2008 results Ohio banking divisions post record year despite U.S. economic turbulence

Exhibit 99.1

	News Release
January 26, 2008

Park National Corporation reports year-end 2008 results
Ohio banking divisions post record year despite U.S. economic turbulence

NEWARK, Ohio— Park National Corporation (Park) (NYSE Alternext US:PRK) today reported results for the fourth quarter 2008 and for the 12 months ended December 31, 2008.

Net income results:

Park’s net income for the 12 months ended December 31, 2008 was $13.7 million or $0.97 per common diluted share, compared to $22.7 million or $1.60 per diluted share for the same period in 2007. Park’s fourth quarter net income (three months ended December 31, 2008) was $11.0 million or $0.77 per common diluted share. For the same period in 2007, Park reported a net loss of $43.2 million or $3.08 per diluted share.

These data reflect two impairment charges (fourth quarter 2007 and third quarter 2008) that Park recorded to the goodwill value of its subsidiary Vision Bank. Vision Bank operates in the Gulf Shore region of Florida and Alabama and continues to experience severely depressed real estate market values and credit deterioration. An impairment charge is a special accounting entry that does not affect a financial institution’s regulatory capital, cash flow or ability to pay dividends. As previously reported, all goodwill value related to Vision Bank was written off.

Without the goodwill impairment charge in the third quarter of 2008, Park’s net income available to common shareholders for 2008 was $68.6 million or $4.91 per common diluted share (compared to $76.7 million or $5.40 per diluted share for the 12 months ended December 31, 2007 without the goodwill impairment charge in the fourth quarter of 2007). Without the goodwill impairment charge in the fourth quarter of 2007, Park’s net income available to common shareholders for that quarter was $10.9 million or $0.77 per diluted share, compared to $10.8 million or $0.77 per common diluted share in net income in the fourth quarter of 2008.

Park’s 12 Ohio-based divisions reported record net income for the 12 months ended December 31, 2008. Net income for this period in 2008 was $94.9 million, a 13.8 percent increase over 2007’s year-end net income of $83.4 million for the Ohio-based divisions. As reported on January 9, 2009, Park’s loans in Ohio increased by more than $31 million in the past month (November 30, 2008 to December 31, 2008) or ten percent annualized. Park’s Ohio-based divisions grew total loans in the year 2008 by more than $215 million, or six percent, compared to 2007.

Loan loss data:

Park’s loan loss provisions for the year 2008 totaled $70.5 million compared to $29.5 million for the year 2007. Vision Bank’s loan loss provision for 2008 was $47 million (compared to $19.4 million for 2007) and Park’s Ohio-based divisions had a loan loss provision of $23.5 million for 2008 (compared to $10.1 million in 2007).

Park’s net loan charge-offs for the year ended December 31, 2008 were $57.5 million, or 1.32 percent of total loans. For that same one-year period, Vision Bank had net loan charge-offs of $38.5 million, or 5.69 percent of total loans and Park’s Ohio-based divisions had net loan charge-offs of $19.0 million, or 0.52 percent of loans.

Additional information:

On December 23, 2008, Park received $100 million of new equity capital from the U.S. Department of the Treasury’s Capital Purchase Program (CPP) established under the Emergency Economic Stabilization Act of 2008. With the additional capital, Park’s total equity to assets ratio improved to 9.09 percent at December 31, 2008 compared to a ratio of 7.79 percent at September 30, 2008. Park continues to easily exceed the “well capitalized” regulatory capital guidelines for financial institutions and as a result has a keen interest in continuing to make loans to qualified borrowers.

Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com

News Release

At its meeting earlier today, the Park board of directors declared a cash dividend for the first quarter of 2009 of $0.94 per share, payable on March 10, 2009 to shareholders of record as of February 26, 2009. This dividend is one cent less than the previous quarter’s dividend and is consistent with Park’s dividend amount in the quarters prior to October 14, 2008 as required of financial institutions which have received U.S. Treasury investments under the CPP.

Headquartered in Newark, Ohio, Park National Corporation holds $7.1 billion in assets (as of December 31, 2008). Park consists of 14 community bank divisions, a data processing and information technology division, two specialty finance companies and a title company. Park’s Ohio-based banking operations are conducted through Park subsidiary The Park National Bank and its divisions which include Fairfield National Bank, Richland Bank, Century National Bank, First-Knox National Bank, Farmers and Savings Bank, United Bank, Second National Bank, Security National Bank, Unity National Bank, Citizens National Bank and The Park National Bank of Southwest Ohio & Northern Kentucky. Park’s other banking subsidiary is Vision Bank (headquartered in Panama City, Florida), and its Vision Bank Division (of Gulf Shores, Alabama). Park also includes Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), Guardian Finance Company and Park Title Agency.

Complete Financial Tables are below...

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Media Contacts: Bethany Lewis, Communication Specialist, 740.349.3754 or John Kozak, Chief Financial Officer, 740.349.3792

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation: deterioration in the asset value of Vision Bank’s loan portfolio may be worse than expected; Park’s ability to execute its business plan successfully and within the expected timeframe; general economic and financial market conditions, and weakening in the economy, specifically, the real estate market, either national or in the states in which Park and its subsidiaries do business, are worse than expected; changes in the interest rate environment reduce net interest margins; competitive pressures among financial institutions increase significantly; the nature, timing and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and its subsidiaries; demand for loans in the respective market areas served by Park and its subsidiaries, and other risk factors relating to the banking industry as detailed from time to time in Park’s reports filed with the Securities and Exchange Commission including those described in “Item 1A. Risk Factors” of Part I of Park’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007 and in our other filings with the Securities and Exchange Commission in “Item 1A. Risk Factors” of Part II of Park’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2008. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Park does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com

PARK NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)

	THREE MONTHS ENDED									TWELVE MONTHS ENDED
	DECEMBER 31,									DECEMBER 31,
							PERCENT									PERCENT
	2008			2007			CHANGE			2008			2007			CHANGE
INCOME STATEMENT AND RATIOS
NET INTEREST INCOME	$	64,835		$	59,953			8.14	%	$	255,873		$	234,677			9.03	%
PROVISION FOR LOAN LOSSES		32,618			18,597			75.39	%		70,487			29,476			139.13	%
OTHER INCOME		27,049			17,944			50.74	%		83,719			71,640			16.86	%
GAIN ON SALE OF SECURITIES		219			—						1,115			—
GOODWILL IMPAIRMENT CHARGE		—			54,035						54,986			54,035
OTHER EXPENSE		47,312			45,523			3.93	%		179,515			170,129			5.52	%
INCOME (LOSS) BEFORE TAXES		12,173			(40,258	)		130.24	%		35,719			52,677			-32.19	%
NET INCOME (LOSS)		10,951			(43,170	)		125.37	%		13,708			22,707			-39.63	%
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS (x)		10,809			(43,170	)		125.04	%		13,566			22,707			-40.26	%
NET INCOME (LOSS) PER COMMON SHARE-BASIC (x)		0.77			(3.08	)		125.00	%		0.97			1.60			-39.38	%
NET INCOME (LOSS) PER COMMON SHARE-DILUTED (x)		0.77			(3.08	)		125.00	%		0.97			1.60			-39.38	%
RETURN ON AVERAGE ASSETS (x)		0.63	%		-2.63	%					0.20	%		0.37	%
RETURN ON AVERAGE COMMON EQUITY (x)		8.10	%		-27.14	%					2.40	%		3.67	%
CASH DIVIDENDS DECLARED PER SHARE		0.95			0.94			1.06	%		3.77			3.73			1.07	%
INCOME STATEMENT AND RATIOS (NON GAAP)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS BEFORE IMPAIRMENT CHARGE (a)(x)		10,809			10,865			-0.52	%		68,552			76,742			-10.67	%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS BEFORE IMPAIRMENT CHARGE PER SHARE-DILUTED (a)(x)		0.77			0.77			0.00	%		4.91			5.40			-9.07	%
RETURN ON AVERAGE TANGIBLE ASSETS BEFORE IMPAIRMENT CHARGE (e)(x)		0.64	%		0.68	%					1.04	%		1.28	%
RETURN ON AVERAGE ASSETS BEFORE IMPAIRMENT CHARGE (a)(x)		0.63	%		0.66	%					1.02	%		1.24	%
RETURN ON AVERAGE TANGIBLE REALIZED COMMON EQUITY BEFORE IMPAIRMENT CHARGE (b)(x)		9.56	%		9.68	%					15.66	%		16.55	%
RETURN ON AVERAGE COMMON EQUITY BEFORE IMPAIRMENT CHARGE (a)(x)		8.10	%		6.83	%					12.12	%		12.40	%
EFFICIENCY RATIO BEFORE IMPAIRMENT CHARGE (d)		51.27	%		58.10	%					52.59	%		55.21	%
OTHER RATIOS
YIELD ON EARNING ASSETS		5.99	%		7.02	%					6.35	%		7.18	%
COST OF PAYING LIABILITIES		2.21	%		3.47	%					2.55	%		3.50	%
NET INTEREST MARGIN		4.11	%		4.04	%					4.16	%		4.20	%
NET LOAN CHARGE-OFFS	$	21,725		$	11,342					$	57,501		$	22,208
NET CHARGE-OFFS AS A PERCENT OF LOANS		1.94	%		1.07	%					1.32	%		0.55	%

	December 31,			September 30,			December 31,
	2008			2008			2007
BALANCE SHEET
INVESTMENTS	$	2,059,051		$	1,807,464		$	1,703,103
LOANS		4,491,337			4,466,671			4,224,134
LOAN LOSS RESERVE		100,088			89,195			87,102
GOODWILL AND OTHER INTANGIBLES		85,545			86,551			144,556
TOTAL ASSETS		7,070,720			6,799,733			6,501,102
TOTAL DEPOSITS		4,761,750			4,774,509			4,439,239
BORROWINGS		1,554,754			1,404,746			1,389,727
EQUITY		642,663			529,685			580,012
COMMON EQUITY		546,942			529,685			580,012
TANGIBLE COMMON EQUITY		461,397			443,134			435,456
COMMON BOOK VALUE PER SHARE		39.15			37.93			41.54
TANGIBLE COMMON BOOK VALUE PER SHARE (c)		33.02			31.73			31.18
NONPERFORMING LOANS		162,357			126,336			103,932
NONPERFORMING ASSETS		188,205			146,086			117,375
PAST DUE 90 DAY LOANS		5,421			4,388			4,545
RATIOS
LOANS/ASSETS		63.52	%		65.69	%		64.98	%
NONPERFORMING LOANS/LOANS		3.61	%		2.83	%		2.46	%
PAST DUE 90 DAY LOANS/LOANS		0.12	%		0.10	%		0.11	%
LOAN LOSS RESERVE/LOANS		2.23	%		2.00	%		2.06	%
TOTAL EQUITY/ASSETS		9.09	%		7.79	%		8.92	%
COMMON EQUITY/ASSETS		7.74	%		7.79	%		8.92	%

(x) Reported measure includes the impact of the preferred stock issued to the U.S. Treasury under the Capital Purchase Program and uses net income (loss) available to common shareholders.

(a)   Net income (loss) available to common shareholders for the periods presented has been adjusted for the impairment charge to goodwill. Net income (loss) available to common shareholders before impairment charge equals net income (loss) available to common shareholders for the period plus the impairment charge to goodwill of $54,986 for 2008 and $54,035 for 2007.

	THREE MONTHS ENDED					TWELVE MONTHS ENDED
	DECEMBER 31,					DECEMBER 31,
	2008		2007			2008		2007
RECONCILIATION OF NET INCOME (LOSS) TO NET INCOME BEFORE IMPAIRMENT CHARGE:
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	10,809		($43,170	)	$	13,566	$	22,707
Plus goodwill impairment charge		—		54,035			54,986		54,035
NET INCOME AVAILABLE TO COMMON SHAREHOLDER’S BEFORE IMPAIRMENT CHARGE	$	10,809		$10,865		$	68,552	$	76,742
RECONCILIATION OF NET INCOME (LOSS) PER COMMON SHARE-DILUTED TO NET INCOME BEFORE IMPAIRMENT CHARGE PER COMMON SHARE-DILUTED:
NET INCOME (LOSS) PER COMMON SHARE-DILUTED	$	0.77		($3.08	)	$	0.97	$	1.60
Plus impairment charge to goodwill per share-diluted		—		3.85			3.94		3.80
NET INCOME BEFORE IMPAIRMENT CHARGE PER COMMON SHARE-DILUTED	$	0.77	$	0.77		$	4.91	$	5.40

(b)   Net Income (loss) available to common shareholders before impairment charge for each period divided by average tangible realized common equity during the period. Average tangible realized common equity equals average stockholders’ equity during the applicable period less (i) average goodwill and other intangible assets during the period, (ii) average accumulated other comprehensive income (loss), net of taxes, during the period, and (iii) Preferred stock.

RECONCILIATION OF AVERAGE STOCKHOLDERS’ EQUITY TO AVERAGE TANGIBLE REALIZED COMMON EQUITY:

	THREE MONTHS ENDED				TWELVE MONTHS ENDED
	DECEMBER 31,				DECEMBER 31,
	2008		2007		2008		2007
AVERAGE STOCKHOLDERS’ EQUITY	$	540,287	$	631,061	$	567,965	$	618,758
Less: Preferred Stock		9,362		—		2,353		—
Average Goodwill and Other Intangible Assets		86,118		198,595		128,635		176,262
Plus: Average Accumulated Other Comprehensive (Income) Loss, Net of Taxes		4,847		12,925		876		21,333
AVERAGE TANGIBLE REALIZED COMMON EQUITY	$	449,654	$	445,391	$	437,853	$	463,829

(c)   Tangible common book value per share equals ending equity less preferred stock and goodwill and other intangibles at the end of the period, divided by actual common shares outstanding at the end of the period.

RECONCILIATION OF EQUITY TO TANGIBLE COMMON EQUITY:

	December 31,		September 30,		December 31,
	2008		2008		2007
STOCKHOLDERS’ EQUITY	$	642,663	$	529,685	$	580,012
Less: Preferred Stock		95,721		—		—
Goodwill and Other Intangible Assets		85,545		86,551		144,556
TANGIBLE COMMON EQUITY	$	461,397	$	443,134	$	435,456

(d)   Efficiency ratio before impairment charge is calculated by reducing non-interest expense by the goodwill impairment charge, and dividing by non-interest income and net interest income (on a tax equivalent basis).

RECONCILIATION OF NON-INTEREST EXPENSE TO NON-INTEREST EXPENSE BEFORE IMPAIRMENT CHARGE

	THREE MONTHS ENDED				TWELVE MONTHS ENDED
	DECEMBER 31,				DECEMBER 31,
	2008		2007		2008		2007
NON-INTEREST EXPENSE	$	47,312	$	99,558	$	234,501	$	224,164
Less Goodwill Impairment Charge		—		54,035		54,986		54,035
NON-INTEREST EXPENSE BEFORE IMPAIRMENT CHARGE	$	47,312	$	45,523	$	179,515	$	170,129

(e)   Net income available to common shareholders before impairment charge divided by average tangible assets. Average tangible assets equals average assets less goodwill and other intangibles.

RECONCILIATION OF AVERAGE ASSETS TO TANGIBLE AVERAGE ASSETS

	THREE MONTHS ENDED				TWELVE MONTHS ENDED
	DECEMBER 31,				DECEMBER 31,
	2008		2007		2008		2007
AVERAGE ASSETS	$	6,789,083	$	6,513,350	$	6,708,086	$	6,169,156
Less Average Goodwill and Other Intangible Assets		86,118		198,595		128,635		176,262
AVERAGE TANGIBLE ASSETS	$	6,702,965	$	6,314,755	$	6,579,451	$	5,992,894

PARK NATIONAL CORPORATION
Consolidated Statements of Income
(dollars in thousands, except per share data)

	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
	2008		2007			2008		2007
						—
Interest income:
Interest and fees on loans	$	72,054	$	82,202		$	301,163	$	320,827
						—
Interest on:
Obligations of U.S. Government, its agencies and other securities		22,173		21,365			87,711		77,016
Obligations of states and political subdivisions		464		712			2,171		3,061
Other interest income		32		118			294		920
Total interest income		94,723		104,397			391,339		401,824
Interest expense:
Interest on deposits:
Demand and savings deposits		4,367		9,861			22,633		39,797
Time deposits		15,915		20,975			67,259		81,224
Interest on borrowings		9,606		13,608			45,574		46,126
Total interest expense		29,888		44,444			135,466		167,147
Net interest income		64,835		59,953			255,873		234,677
Provision for loan losses		32,618		18,597			70,487		29,476
Net interest income after provision for loan losses		32,217		41,356			185,386		205,201
Other income		27,049		17,944			83,719		71,640
Gain (loss) on sale of securities		219		—			1,115		—
Other expense:
Salaries and employee benefits		24,756		24,936			99,018		97,712
Occupancy expense		2,776		2,663			11,534		10,717
Furniture and equipment expense		2,451		2,295			9,756		9,259
Goodwill Impairment Charge		—		54,035			54,986		54,035
Other expense		17,329		15,629			59,207		52,441
Total other expense		47,312		99,558			234,501		224,164
Income (loss) before income taxes		12,173		(40,258	)		35,719		52,677
Income taxes		1,222		2,912			22,011		29,970
Net income (loss)	$	10,951		($43,170	)	$	13,708	$	22,707
Preferred Stock dividends		142		—			142		—
Income (loss) available to common shareholders	$	10,809		($43,170	)	$	13,566	$	22,707
Per Common Share:
Net income (loss) — basic	$	0.77		($3.08	)	$	0.97	$	1.60
Net income (loss) — diluted	$	0.77		($3.08	)	$	0.97	$	1.60
Weighted average shares — basic		13,967,194		14,029,944			13,965,219		14,212,805
Weighted average shares — diluted		13,967,650		14,030,499			13,965,333		14,217,483

PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except share data)

	December 31,
	2008			2007
Assets
Cash and due from banks	$	150,298		$	183,165
Money market instruments		20,963			10,232
Interest bearing deposits		1			1
Investment securities		2,059,051			1,703,103
Loans		4,491,337			4,224,134
Allowance for loan losses		100,088			87,102
Loans, net		4,391,249			4,137,032
Bank premises and equipment, net		68,553			66,634
Goodwill		72,334			127,320
Other intangibles		13,211			17,236
Other assets		295,060			256,379
Total assets	$	7,070,720		$	6,501,102
Liabilities and Stockholders’ Equity
Deposits:
Noninterest bearing	$	782,625		$	695,466
Interest bearing		3,979,125			3,743,773
Total deposits		4,761,750			4,439,239
Borrowings		1,554,754			1,389,727
Other liabilities		111,553			92,124
Total liabilities		6,428,057			5,921,090
Stockholders’ Equity:
Preferred Stock (200,000 shares authorized in 2008 and -0- in 2007; 100,000 shares issued in 2008 and -0- in 2007)		95,721			—
Common stock (No par value; 20,000,000 shares authorized in 2008 and 2007; 16,151,151 shares issued in 2008 and 16,151,200 in 2007)		301,210			301,213
Common Stock Warrants		4,297			—
Accumulated other comprehensive income (loss), net of taxes		10,596			(2,608	)
Retained earnings		438,504			489,511
Treasury stock (2,179,424 shares in 2008 and 2,186,624 shares in 2007)		(207,665	)		(208,104	)
Total stockholders’ equity		642,663			580,012
Total liabilities and stockholders’ equity	$	7,070,720		$	6,501,102

PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
(dollars in thousands)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2008			2007			2008			2007
Assets
Cash and due from banks	$	138,004		$	148,912		$	143,151		$	151,219
Money market instruments		19,695			10,806			15,501			17,837
Interest bearing deposits		1			1			1			1
Investment securities		1,815,033			1,710,357			1,806,317			1,573,882
Loans		4,465,655			4,196,367			4,354,520			4,011,307
Allowance for loan losses		88,567			80,673			86,485			78,255
Loans, net		4,377,088			4,115,694			4,268,035			3,933,052
Bank premises and equipment, net		69,375			66,782			69,278			61,604
Other assets		369,887			460,798			405,803			431,561
Total assets	$	6,789,083		$	6,513,350		$	6,708,086		$	6,169,156
Liabilities and Stockholders’ Equity
Deposits:
Noninterest bearing	$	770,364		$	717,778		$	739,994		$	697,247
Interest bearing		4,039,670			3,789,396			3,862,780			3,706,231
Total deposits		4,810,034			4,507,174			4,602,774			4,403,478
Borrowings		1,350,520			1,289,179			1,444,741			1,062,735
Other liabilities		88,242			85,936			92,606			84,185
Total liabilities		6,248,796			5,882,289			6,140,121			5,550,398
Stockholders’ Equity:
Preferred stock		9,362			—			2,353			—
Common stock		301,211			300,476			301,211			284,626
Common Stock Warrants		420			—			106			—
Accumulated other comprehensive (loss), net of taxes		(4,847	)		(12,925	)		(876	)		(21,333	)
Retained earnings		442,092			546,636			473,236			530,324
Treasury stock		(207,951	)		(203,126	)		(208,065	)		(174,859	)
Total stockholders’ equity		540,287			631,061			567,965			618,758
Total liabilities and stockholders’ equity	$	6,789,083		$	6,513,350		$	6,708,086		$	6,169,156