Park National (PRK) 8-K Park National Corporation Reports Second Quarter 2011

News Release

July 25, 2011 Exhibit 99.1

Park National Corporation Reports Second Quarter 2011

Financial Results and Continues $0.94 Quarterly Dividend

NEWARK, Ohio – Park National Corporation (Park) (NYSE Amex: PRK) today reported financial results for the three and six months ended June 30, 2011 (second quarter and first half, respectively). Also, Park's board of directors declared a $0.94 per common share quarterly cash dividend, payable on September 9, 2011 to common shareholders of record as of August 24, 2011.

Net income for the second quarter of 2011 was $20.3 million, compared to $21.2 million in net income for the same period in 2010. Net income per diluted common share was $1.22, a 6.2 percent decline from Park’s net income per diluted common share of $1.30 for the second quarter of 2010.

Net income for the first half of 2011 was $41.7 million, compared to $41.9 million in net income for the same period in 2010. Net income per diluted common share was $2.52 for the first half of 2011, a 3.1 percent decline from the net income per diluted common share of $2.60 reported in the first half of 2010.

Park’s net income for the first halves of 2011 and 2010 included pre-tax gains of $22.0 million and $11.8 million, respectively, from the sale of investment securities. Excluding these gains, net income for the first half of 2011 was $27.4 million or $1.59 per diluted common share, compared to net income of $34.3 million or $2.09 per diluted common share in 2010.

Ohio-Based Operations

Park's Ohio-based operations reported net income of $62.2 million for the first half of 2011, compared to net income of $56.2 million for the same period in 2010. Park’s Ohio-based operations had total assets of $6.6 billion at June 30, 2011, compared to $6.2 billion at June 30, 2010. This performance resulted in return on assets of 1.91 percent and 1.82 percent for Park’s Ohio-based operations in the first half of 2011 and 2010, respectively.

“We are proud that our successful performance continues to generate above-average results in our industry,” said Park Chairman C. Daniel DeLawder. “Net income for the first six months in Ohio exceeded the same period a year ago. Results for the full-year 2010 set a new record for us in Ohio, so we are especially happy about the first half of 2011. We are grateful for the dedication and high-quality work of our associates, as well as for the loyal relationships we have with local families, businesses, and organizations.”

Credit Quality

Total nonperforming loans (including loans past due 90 days and still accruing) were $241.9 million at June 30, 2011, a 17.4 percent decline from the $292.9 million in nonperforming loans at December 31, 2010. Park's loan loss provision for the six months ended June 30, 2011 was $37.4 million, compared to $29.8 million for the same period in 2010. Of the $37.4 million loan loss provision recorded in the first half of 2011, $26.4 million was recorded at Vision Bank, with the remaining $11.0 million recorded within Park's Ohio-based operations.

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

News Release

Headquartered in Newark, Ohio, Park National Corporation has $7.3 billion in total assets (as of June 30, 2011). Park consists of 13 community bank divisions and two specialty finance companies. Park's Ohio-based banking operations are conducted through Park subsidiary The Park National Bank and its divisions which include Fairfield National Bank Division, Richland Bank Division, Century National Bank Division, First-Knox National Bank Division, Farmers & Savings Bank Division, United Bank Division, Second National Bank Division, Security National Bank Division, Unity National Bank Division, The Park National Bank of Southwest Ohio & Northern Kentucky Division and Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance). 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 Guardian Financial Services Company (d.b.a. Guardian Finance Company).

Media contacts: Bethany Lewis, 740.349.0421, blewis@parknationalbank.com or John Kozak, 740.349.3792

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

Park cautions that any forward-looking statements contained in this news release or made by management of Park 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 Park's loan portfolio may be worse than expected due to a number of factors, such as adverse changes in economic conditions that impair the ability of borrowers to repay their loans, the underlying value of the collateral could prove less valuable than assumed and cash flows may be worse than expected; Park’s ability to sell OREO properties at prices as favorable as anticipated; 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 and credit market, either nationally or in the states in which Park and its subsidiaries do business, may be worse than expected which could decrease the demand for loan, deposit and other financial services and increase loan delinquencies and defaults; the effects of the Gulf of Mexico oil spill; changes in market rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our consolidated balance sheet; changes in consumer spending, borrowing and saving habits; our liquidity requirements could be adversely affected by changes in our assets and liabilities; competitive factors among financial institutions increase significantly, including product and pricing pressures and our ability to attract, develop and retain qualified bank professionals; 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, including changes in laws and regulations concerning taxes, accounting, banking, securities and other aspects of the financial services industry, specifically the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of fiscal and governmental policies of the United States federal government; 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, 2010 and in “Item 1A. Risk Factors” of Part II of Park’s Quarterly Report on Form 10-Q for the period ended March 31, 2011. 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

Three months ended June 30, 2011, March 31, 2011, and June 30, 2010

	2011			2011			2010			Percent change vs.
(in thousands, except share and per share data)	2nd QTR			1st QTR			2nd QTR			1Q '11			2Q '10
INCOME STATEMENT:
Net interest income	$	70,022		$	69,313		$	68,721			1.0	%		1.9	%
Provision for loan losses		23,900			13,500			13,250			77.0	%		80.4	%
Other income		13,236			13,171			16,647			0.5	%		-20.5	%
Gain on sale of securities		15,362			6,635			3,515		N.M.			N.M.
Total other expense		47,007			46,346			47,001			1.4	%		0.0	%
Income before income taxes	$	27,713		$	29,273		$	28,632			-5.3	%		-3.2	%
Income taxes		7,396			7,895			7,466			-6.3	%		-0.9	%
Net income	$	20,317		$	21,378		$	21,166			-5.0	%		-4.0	%
Preferred stock dividends and accretion		1,464			1,464			1,451			0.0	%		0.9	%
Net income available to common shareholders	$	18,853		$	19,914		$	19,715			-5.3	%		-4.4	%
MARKET DATA:
Earnings per common share - basic (b)	$	1.22		$	1.29		$	1.30			-5.4	%		-6.2	%
Earnings per common share - diluted (b)		1.22			1.29			1.30			-5.4	%		-6.2	%
Cash dividends per common share		0.94			0.94			0.94			0.0	%		0.0	%
Common book value per common share at period end (h)		42.21			42.06			42.94			0.4	%		-1.7	%
Stock price per common share at period end		65.86			66.82			65.04			-1.4	%		1.3	%
Market capitalization at period end		1,014,172			1,028,956			989,054			-1.4	%		2.5	%
Weighted average common shares - basic (a)		15,398,919			15,398,930			15,114,846			0.0	%		1.9	%
Weighted average common shares - diluted (a)		15,399,593			15,403,420			15,114,846			0.0	%		1.9	%
Common shares outstanding at period end		15,398,913			15,398,923			15,206,854			0.0	%		1.3	%
PERFORMANCE RATIOS:
Annualized return on average assets (a)(b)		1.04	%		1.11	%		1.13	%		-6.3	%		-8.0	%
Annualized return on average common equity (a)(b)		11.51	%		12.42	%		12.27	%		-7.3	%		-6.2	%
Yield on loans		5.61	%		5.63	%		5.84	%		-0.4	%		-3.9	%
Yield on investments		3.83	%		3.95	%		4.44	%		-3.0	%		-13.7	%
Yield on earning assets		5.08	%		5.14	%		5.44	%		-1.2	%		-6.6	%
Cost of interest bearing deposits		0.67	%		0.74	%		1.04	%		-9.5	%		-35.6	%
Cost of borrowings		2.65	%		2.50	%		2.94	%		6.0	%		-9.9	%
Cost of paying liabilities		1.09	%		1.14	%		1.40	%		-4.4	%		-22.1	%
Net interest margin (annualized) (g)		4.19	%		4.21	%		4.29	%		-0.5	%		-2.3	%
Efficiency ratio (g)		56.13	%		55.84	%		54.75	%		0.5	%		2.5	%
OTHER RATIOS (NON GAAP):
Annualized return on average tangible assets (a)(b)(e)		1.05	%		1.12	%		1.14	%		-6.2	%		-7.9	%
Annualized return on average tangible common equity (a)(b)(c)		13.04	%		14.11	%		14.03	%		-7.6	%		-7.1	%
Tangible common equity per common share (d)	$	37.21		$	37.02		$	37.68			0.5	%		-1.2	%

PARK NATIONAL CORPORATION

Financial Highlights (continued)

Three months ended June 30, 2011, March 31, 2011, and June 30, 2010

										Percent change vs.
BALANCE SHEET:	June 30, 2011			March 31, 2011			June 30, 2010			1Q '11			2Q '10
Investment securities	$	1,960,866		$	2,045,656		$	1,845,594			-4.1	%		6.2	%
Loans		4,710,513			4,750,975			4,655,997			-0.9	%		1.2	%
Allowance for loan losses		110,187			126,859			120,676			-13.1	%		-8.7	%
Goodwill and other intangibles		77,039			77,708			80,021			-0.9	%		-3.7	%
Other real estate owned		47,997			47,133			46,456			1.8	%		3.3	%
Total assets		7,328,686			7,338,403			7,093,098			-0.1	%		3.3	%
Total deposits		5,257,517			5,314,678			5,168,814			-1.1	%		1.7	%
Borrowings		1,130,564			1,178,678			1,008,748			-4.1	%		12.1	%
Stockholders' equity		747,760			745,238			749,939			0.3	%		-0.3	%
Common equity (h)		650,042			647,734			653,053			0.4	%		-0.5	%
Tangible common equity (d)		573,003			570,026			573,032			0.5	%		0.0	%
Nonperforming loans		238,723			279,079			237,854			-14.5	%		0.4	%
Nonperforming assets		286,720			326,212			284,310			-12.1	%		0.8	%
Past due 90 day loans and still accruing		3,142			2,228			17,283			41.0	%		-81.8	%
ASSET QUALITY RATIOS:
Loans as a % of period end assets		64.28	%		64.74	%		65.64	%		-0.7	%		-2.1	%
Nonperforming loans as a % of period end loans		5.07	%		5.87	%		5.11	%		-13.6	%		-0.8	%
Past due 90 day loans as a % of period end loans		0.07	%		0.05	%		0.37	%		40.0	%		-81.1	%
Nonperforming assets / Period end loans + OREO		6.03	%		6.80	%		6.05	%		-11.3	%		-0.3	%
Allowance for loan losses as a % of period end loans		2.34	%		2.67	%		2.59	%		-12.4	%		-9.7	%
Net loan charge-offs	$	40,572		$	8,038		$	12,248		N.M.			N.M.
Annualized net loan charge-offs as a % of average loans (a)		3.43	%		0.69	%		1.07	%	N.M.			N.M.
CAPITAL & LIQUIDITY:
Total equity / Period end assets		10.20	%		10.16	%		10.57	%		0.4	%		-3.5	%
Common equity / Period end assets		8.87	%		8.83	%		9.21	%		0.5	%		-3.7	%
Tangible common equity (d) / Tangible assets (f)		7.90	%		7.85	%		8.17	%		0.6	%		-3.3	%
Average equity / Average assets (a)		10.34	%		10.28	%		10.56	%		0.6	%		-2.1	%
Average equity / Average loans (a)		15.91	%		15.77	%		16.09	%		0.9	%		-1.1	%
Average loans / Average deposits (a)		89.67	%		91.19	%		88.85	%		-1.7	%		0.9	%

PARK NATIONAL CORPORATION

Financial Highlights

Six months ended June 30, 2011 and 2010

	Six months ended			Six months ended
(in thousands, except share and per share data)	June 30, 2011			June 30, 2010			Percent change
INCOME STATEMENT:
Net interest income	$	139,335		$	136,101			2.4	%
Provision for loan losses		37,400			29,800			25.5	%
Other income		26,407			33,357			-20.8	%
Gain on sale of securities		21,997			11,819			86.1	%
Total other expense		93,353			94,891			-1.6	%
Income before income taxes	$	56,986		$	56,586			0.7	%
Income taxes		15,291			14,641			4.4	%
Net income	$	41,695		$	41,945			-0.6	%
Preferred stock dividends and accretion		2,928			2,903			0.9	%
Net income available to common shareholders	$	38,767		$	39,042			-0.7	%
MARKET DATA:
Earnings per common share - basic (b)	$	2.52		$	2.60			-3.1	%
Earnings per common share - diluted (b)		2.52			2.60			-3.1	%
Cash dividends per common share		1.88			1.88			0.0	%
Weighted average common shares - basic (a)		15,398,925			14,998,810			2.7	%
Weighted average common shares - diluted (a)		15,401,506			14,998,810			2.7	%
PERFORMANCE RATIOS:
Annualized return on average assets (a)(b)		1.07	%		1.12	%		-4.5	%
Annualized return on average common equity (a)(b)		11.96	%		12.35	%		-3.2	%
Yield on loans		5.62	%		5.86	%		-4.1	%
Yield on investments		3.89	%		4.44	%		-12.4	%
Yield on earning assets		5.11	%		5.44	%		-6.1	%
Cost of interest bearing deposits		0.70	%		1.10	%		-36.4	%
Cost of borrowings		2.57	%		2.92	%		-12.0	%
Cost of paying liabilities		1.11	%		1.44	%		-22.9	%
Net interest margin (annualized) (g)		4.20	%		4.25	%		-1.2	%
Efficiency ratio (g)		55.98	%		55.68	%		0.5	%
ASSET QUALITY RATIOS:
Net loan charge-offs	$	48,610		$	25,841			88.1	%
Annualized net loan charge-offs as a % of average loans (a)		2.07	%		1.13	%		83.2	%
CAPITAL & LIQUIDITY:
Average equity / Average assets (a)		10.31	%		10.41	%		-1.0	%
Average equity / Average loans (a)		15.84	%		15.92	%		-0.5	%
Average loans / Average deposits (a)		90.42	%		88.52	%		2.1	%
OTHER RATIOS (NON GAAP):
Annualized return on average tangible assets (a)(b)(e)		1.08	%		1.13	%		-4.4	%
Annualized return on average tangible common equity (a)(b)(c)		13.57	%		14.15	%		-4.1	%

PARK NATIONAL CORPORATION

Financial Highlights (continued)

N.M.- Not Meaningful

(a) Averages are for the quarters ended June 30, 2011, March 31, 2011, and June 30, 2010, and the six-month periods ended June 30, 2011 and June 30, 2010, as applicable.

(b) Reported measure uses net income available to common shareholders.

(c) Annualized return on average tangible common equity equals net income available to common shareholders for each period divided by average tangible common equity during the period.  Average tangible common equity equals average stockholders' equity during the applicable period less (i) average preferred stock during the applicable period and (ii) average goodwill and other intangibles during the applicable period.

RECONCILIATION OF AVERAGE STOCKHOLDERS' EQUITY TO AVERAGE TANGIBLE COMMON EQUITY:

	THREE MONTHS ENDED						SIX MONTHS ENDED
	June 30, 2011		March 31, 2011		June 30, 2010		June 30, 2011		June 30, 2010
AVERAGE STOCKHOLDERS' EQUITY	$	754,788	$	747,896	$	741,006	$	751,361	$	734,160
Less: Average preferred stock		97,595		97,380		96,770		97,488		96,670
Average goodwill and other intangibles		77,404		78,067		80,469		77,734		80,920
AVERAGE TANGIBLE COMMON EQUITY	$	579,789	$	572,449	$	563,767	$	576,139	$	556,570

(d) Tangible common equity equals ending stockholders' equity less preferred stock and goodwill and other intangibles, in each case at the end of the period.

RECONCILIATION OF STOCKHOLDERS' EQUITY TO TANGIBLE COMMON EQUITY:

	June 30, 2011		March 31, 2011		June 30, 2010
STOCKHOLDERS' EQUITY	$	747,760	$	745,238	$	749,939
Less: Preferred stock		97,718		97,504		96,886
Goodwill and other intangibles		77,039		77,708		80,021
TANGIBLE COMMON EQUITY	$	573,003	$	570,026	$	573,032

(e) Annualized return on average tangible assets equals net income available to common shareholders for each period divided by average tangible assets during the period.  Average tangible assets equals average assets less average goodwill and other intangibles, in each case during the applicable period.

RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS:

	THREE MONTHS ENDED						SIX MONTHS ENDED
	June 30, 2011		March 31, 2011		June 30, 2010		June 30, 2011		June 30, 2010
AVERAGE ASSETS	$	7,300,149	$	7,274,527	$	7,018,710	$	7,287,409	$	7,052,335
Less: Average goodwill and other intangibles		77,404		78,067		80,469		77,734		80,920
AVERAGE TANGIBLE ASSETS	$	7,222,745	$	7,196,460	$	6,938,241	$	7,209,675	$	6,971,415

(f) Tangible common equity divided by tangible assets. Tangible assets equals total assets less goodwill and other intangibles.

RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:

	June 30, 2011		March 31, 2011		June 30, 2010
TOTAL ASSETS	$	7,328,686	$	7,338,403	$	7,093,098
Less: Goodwill and other intangibles		77,039		77,708		80,021
TANGIBLE ASSETS	$	7,251,647	$	7,260,695	$	7,013,077

PARK NATIONAL CORPORATION

Financial Highlights (continued)

(g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown below assuming a 35% tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis.

RECONCILIATION OF INTEREST INCOME TO FULLY TAXABLE EQUIVALENT NET INTEREST INCOME

	THREE MONTHS ENDED						SIX MONTHS ENDED
	June 30, 2011		March 31, 2011		June 30, 2010		June 30, 2011		June 30, 2010
Interest income	$	84,922	$	84,662	$	87,242	$	169,584	$	174,444
Fully taxable equivalent adjustment		490		518		473		1,008		954
Fully taxable equivalent interest income	$	85,412	$	85,180	$	87,715	$	170,592	$	175,398
Interest expense		14,900		15,349		18,521		30,249		38,343
Fully taxable equivalent net interest income	$	70,512	$	69,831	$	69,194	$	140,343	$	137,055

(h) Common book value per common share at period end equals common equity divided by common shares outstanding at period end. Common equity equals stockholders' equity less preferred stock, in each case at the end of the period.

RECONCILIATION OF STOCKHOLDERS' EQUITY TO COMMON EQUITY

	June 30, 2011		March 31, 2011		June 30, 2010
STOCKHOLDERS' EQUITY	$	747,760	$	745,238	$	749,939
Less: Preferred stock		97,718		97,504		96,886
COMMON EQUITY	$	650,042	$	647,734	$	653,053

PARK NATIONAL CORPORATION

Consolidated Statements of Income

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands, except share and per share data)	2011		2010		2011		2010
Interest income:
Interest and fees on loans	$	65,862	$	66,723	$	131,316	$	133,164
Interest on:
Obligations of U.S. Government, its agencies
and other securities		18,960		20,263		38,013		40,738
Obligations of states and political subdivisions		92		204		241		421
Other interest income		8		52		14		121
Total interest income		84,922		87,242		169,584		174,444
Interest expense:
Interest on deposits:
Demand and savings deposits		951		1,582		1,942		3,357
Time deposits		6,200		9,518		12,934		20,168
Interest on borrowings		7,749		7,421		15,373		14,818
Total interest expense		14,900		18,521		30,249		38,343
Net interest income		70,022		68,721		139,335		136,101
Provision for loan losses		23,900		13,250		37,400		29,800
Net interest income after provision for loan losses		46,122		55,471		101,935		106,301
Other income		13,236		16,647		26,407		33,357
Gain on sale of securities		15,362		3,515		21,997		11,819
Other expense:
Salaries and employee benefits		25,253		24,013		50,317		49,184
Occupancy expense		2,764		2,793		5,764		5,910
Furniture and equipment expense		2,785		2,564		5,442		5,196
Other expense		16,205		17,631		31,830		34,601
Total other expense		47,007		47,001		93,353		94,891
Income before income taxes		27,713		28,632		56,986		56,586
Income taxes		7,396		7,466		15,291		14,641
Net income	$	20,317	$	21,166	$	41,695	$	41,945
Preferred stock dividends and accretion		1,464		1,451		2,928		2,903
Net income available to common shareholders	$	18,853	$	19,715	$	38,767	$	39,042
Per Common Share:
Net income - basic	$	1.22	$	1.30	$	2.52	$	2.60
Net income - diluted	$	1.22	$	1.30	$	2.52	$	2.60
Weighted average shares - basic		15,398,919		15,114,846		15,398,925		14,998,810
Weighted average shares - diluted		15,399,593		15,114,846		15,401,506		14,998,810

PARK NATIONAL CORPORATION

Consolidated Balance Sheets

(in thousands, except share data)	June 30, 2011			December 31, 2010			June 30, 2010
Assets
Cash and due from banks	$	131,604		$	109,058		$	126,222
Money market instruments		85,512			24,722			75,323
Investment securities		1,960,866			2,039,791			1,845,594
Loans		4,710,513			4,732,685			4,655,997
Allowance for loan losses		110,187			121,397			120,676
Loans, net		4,600,326			4,611,288			4,535,321
Bank premises and equipment, net		69,830			69,567			68,929
Goodwill and other intangibles		77,039			78,377			80,021
Other real estate owned		47,997			44,325			46,456
Other assets		355,512			321,249			315,232
Total assets	$	7,328,686		$	7,298,377		$	7,093,098
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing	$	984,160		$	937,719		$	884,912
Interest bearing		4,273,357			4,157,701			4,283,902
Total deposits		5,257,517			5,095,420			5,168,814
Borrowings		1,130,564			1,375,652			1,008,748
Other liabilities		192,845			81,481			165,597
Total liabilities	$	6,580,926		$	6,552,553		$	6,343,159
Stockholders' Equity:
Preferred Stock (200,000 shares authorized in 2011 and 2010;
100,000 shares issued in 2011 and 2010)	$	97,718		$	97,290		$	96,886
Common stock (No par value; 20,000,000 shares authorized
in 2011 and 2010;  16,151,042 shares issued at June 30, 2011,
16,151,062 at December 31, 2010, and 16,151,086 at June 30, 2010)		301,203			301,204			301,206
Common stock warrants		4,406			4,473			4,761
Accumulated other comprehensive (loss) income, net of taxes		(10,175	)		(1,868	)		15,879
Retained earnings		432,341			422,458			427,236
Treasury stock (752,129 shares at June 30, 2011, 752,128 shares
at December 31, 2010, and 944,232 at June 30, 2010)		(77,733	)		(77,733	)		(96,029	)
Total stockholders' equity	$	747,760		$	745,824		$	749,939
Total liabilities and stockholders' equity	$	7,328,686		$	7,298,377		$	7,093,098

PARK NATIONAL CORPORATION

Consolidated Average Balance Sheets

	Three Months Ended									Six Months Ended
	June 30,			December 31,			June 30,			June 30,			June 30,
(in thousands)	2011			2010			2010			2011			2010
Assets
Cash and due from banks	$	122,298		$	119,982		$	110,450		$	121,324		$	112,660
Money market instruments		21,239			84,379			94,669			24,078			110,146
Investment securities		2,002,676			1,707,321			1,814,859			1,986,901			1,826,563
Loans		4,743,696			4,695,257			4,604,481			4,743,387			4,610,944
Allowance for loan losses		127,682			118,101			120,424			126,108			118,857
Loans, net		4,616,014			4,577,156			4,484,057			4,617,279			4,492,087
Bank premises and equipment, net		69,554			70,299			69,286			69,723			69,419
Goodwill and other intangibles		77,404			78,823			80,469			77,734			80,920
Other real estate owned		46,823			53,424			46,127			47,298			44,061
Other assets		344,141			322,468			318,793			343,072			316,479
Total assets	$	7,300,149		$	7,013,852		$	7,018,710		$	7,287,409		$	7,052,335
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing	$	988,028		$	959,685		$	893,962		$	972,132		$	881,575
Interest bearing		4,301,872			4,161,547			4,288,551			4,273,720			4,327,568
Total deposits		5,289,900			5,121,232			5,182,513			5,245,852			5,209,143
Borrowings		1,171,827			1,041,920			1,013,006			1,205,310			1,024,382
Other liabilities		83,634			90,144			82,185			84,886			84,650
Total liabilities	$	6,545,361		$	6,253,296		$	6,277,704		$	6,536,048		$	6,318,175
Stockholders' Equity:
Preferred stock	$	97,595		$	97,174		$	96,770		$	97,488		$	96,670
Common stock		301,202			301,317			301,246			301,202			301,226
Common stock warrants		4,458			4,405			4,943			4,466			5,151
Accumulated other comprehensive (loss) income, net of taxes		(2,717	)		11,169			15,217			(3,729	)		17,676
Retained earnings		431,983			430,578			427,363			429,667			428,306
Treasury stock		(77,733	)		(84,087	)		(104,533	)		(77,733	)		(114,869	)
Total stockholders' equity	$	754,788		$	760,556		$	741,006		$	751,361		$	734,160
Total liabilities and stockholders' equity	$	7,300,149		$	7,013,852		$	7,018,710		$	7,287,409		$	7,052,335

PARK NATIONAL CORPORATION

Consolidated Statements of Income - Linked Quarters

	2011		2011		2010		2010		2010
(in thousands, except per share data)	2nd QTR		1st QTR		4th QTR		3rd QTR		2nd QTR
Interest income:
Interest and fees on loans	$	65,862	$	65,454	$	67,405	$	67,123	$	66,723
Interest on:
Obligations of U.S. Government, its agencies
and other securities		18,960		19,053		16,768		19,333		20,263
Obligations of states and political subdivisions		92		149		173		192		204
Other interest income		8		6		45		34		52
Total interest income		84,922		84,662		84,391		86,682		87,242
Interest expense:
Interest on deposits:
Demand and savings deposits		951		991		1,133		1,263		1,582
Time deposits		6,200		6,734		7,512		8,532		9,518
Interest on borrowings		7,749		7,624		7,248		7,442		7,421
Total interest expense		14,900		15,349		15,893		17,237		18,521
Net interest income		70,022		69,313		68,498		69,445		68,721
Provision for loan losses		23,900		13,500		20,448		14,654		13,250
Net interest income after provision for loan losses		46,122		55,813		48,050		54,791		55,471
Other income		13,236		13,171		14,745		17,530		16,647
Gain on sale of securities		15,362		6,635		45		-		3,515
Other expense:
Salaries and employee benefits		25,253		25,064		24,631		24,500		24,013
Occupancy expense		2,764		3,000		2,760		2,840		2,793
Furniture and equipment expense		2,785		2,657		2,615		2,624		2,564
Other expense		16,205		15,625		16,514		15,732		17,631
Total other expense		47,007		46,346		46,520		45,696		47,001
Income before income taxes		27,713		29,273		16,320		26,625		28,632
Income taxes		7,396		7,895		3,625		7,048		7,466
Net income	$	20,317	$	21,378	$	12,695	$	19,577	$	21,166
Preferred stock dividends and accretion		1,464		1,464		1,452		1,452		1,451
Net income available to common shareholders	$	18,853	$	19,914	$	11,243	$	18,125	$	19,715
Per Common Share:
Net income - basic	$	1.22	$	1.29	$	0.73	$	1.19	$	1.30
Net income - diluted	$	1.22	$	1.29	$	0.73	$	1.19	$	1.30

PARK NATIONAL CORPORATION

Detail of other income and other expense - Linked Quarters

	2011			2011			2010			2010			2010
(in thousands)	2nd QTR			1st QTR			4th QTR			3rd QTR			2nd QTR
Other income:
Income from fiduciary activities	$	3,929		$	3,722		$	3,609		$	3,314		$	3,528
Service charges on deposits		4,525			4,245			4,853			5,026			5,092
Other service income		2,734			2,301			3,449			3,909			3,476
Checkcard fee income		3,251			2,976			3,068			2,900			2,765
Bank owned life insurance income		1,228			1,229			1,195			1,313			1,254
ATM fees		682			654			655			699			832
OREO devaluations		(5,257	)		(4,394	)		(5,971	)		(1,555	)		(1,919	)
Other		2,144			2,438			3,887			1,924			1,619
Total other income	$	13,236		$	13,171		$	14,745		$	17,530		$	16,647
Other expense:
Salaries and employee benefits	$	25,253		$	25,064		$	24,631		$	24,500		$	24,013
Net occupancy expense		2,764			3,000			2,760			2,840			2,793
Furniture and equipment expense		2,785			2,657			2,615			2,624			2,564
Data processing fees		1,135			1,253			1,339			1,403			1,394
Professional fees and services		5,320			4,874			5,341			4,477			5,299
Amortization of intangibles		669			669			822			822			842
Marketing		728			623			968			840			946
Insurance		2,345			2,269			2,136			2,316			2,333
Communication		1,485			1,556			1,536			1,696			1,647
State taxes		488			457			622			865			838
Other		4,035			3,924			3,750			3,313			4,332
Total other expense	$	47,007		$	46,346		$	46,520		$	45,696		$	47,001

PARK NATIONAL CORPORATION

Asset Quality Information

	Quarter ended						Year ended December 31,
(in thousands, except ratios)	June 30, 2011			March 31, 2011			2010			2009			2008
Allowance for loan losses:
Allowance for loan losses, beginning of period	$	126,859		$	121,397		$	116,717		$	100,088		$	87,102
Charge-offs		42,005			10,399			66,314			59,022			62,916
Recoveries		1,433			2,361			6,092			6,830			5,415
Net charge-offs		40,572			8,038			60,222			52,192			57,501
Provision for loan losses		23,900			13,500			64,902			68,821			70,487
Allowance for loan losses, end of period	$	110,187		$	126,859		$	121,397		$	116,717		$	100,088
General reserve trends:
Allowance for loan losses, end of period	$	110,187		$	126,859		$	121,397		$	116,717		$	100,088
Specific reserves		32,810			47,287			43,459			36,721			8,875
General reserves	$	77,377		$	79,572		$	77,938		$	79,996		$	91,213
Total loans	$	4,710,513		$	4,750,975		$	4,732,685		$	4,640,432		$	4,491,337
Impaired commercial loans		200,400			238,959			250,933			201,143			141,343
Non-impaired loans	$	4,510,113		$	4,512,016		$	4,481,752		$	4,439,289		$	4,349,994
Asset Quality Ratios:
Net charge-offs as a % of average loans (annualized for quarterly periods)		3.43	%		0.69	%		1.30	%		1.14	%		1.32	%
Allowance for loan losses as a % of period end loans		2.34	%		2.67	%		2.57	%		2.52	%		2.23	%
General reserves as a % of non-impaired loans		1.72	%		1.76	%		1.74	%		1.80	%		2.10	%
Nonperforming Assets - Park National Corporation:
Nonaccrual loans	$	238,690		$	278,819		$	289,268		$	233,544		$	159,512
Renegotiated loans		33			260			-			142			2,845
Loans past due 90 days or more		3,142			2,228			3,590			14,773			5,421
Total nonperforming loans	$	241,865		$	281,307		$	292,858		$	248,459		$	167,778
Other real estate owned - Park National Bank		10,309			9,788			8,385			6,037			6,149
Other real estate owned - SE Property Holdings, LLC		32,638			13,004			-			-			-
Other real estate owned - Vision Bank		5,050			24,341			35,940			35,203			19,699
Total nonperforming assets	$	289,862		$	328,440		$	337,183		$	289,699		$	193,626
Percentage of nonperforming loans to period end loans		5.13	%		5.92	%		6.19	%		5.35	%		3.74	%
Percentage of nonperforming assets to period end loans		6.15	%		6.91	%		7.12	%		6.24	%		4.31	%
Percentage of nonperforming assets to period end assets		3.96	%		4.48	%		4.62	%		4.11	%		2.74	%

PARK NATIONAL CORPORATION

Asset Quality Information

	Quarter ended						Year ended December 31,
(in thousands, except ratios)	June 30, 2011			March 31, 2011			2010			2009			2008
Nonperforming Assets - Ohio-based operations:
Nonaccrual loans	$	121,128		$	115,476		$	117,815		$	85,197		$	68,306
Renegotiated loans		33			260			-			142			-
Loans past due 90 days or more		2,162			2,228			3,226			3,496			4,777
Total nonperforming loans	$	123,323		$	117,964		$	121,041		$	88,835		$	73,083
Other real estate owned - Park National Bank		10,309			9,788			8,385			6,037			6,149
Other real estate owned - SE Property Holdings, LLC		32,638			13,004			-			-			-
Total nonperforming assets	$	166,270		$	140,756		$	129,426		$	94,872		$	79,232
Percentage of nonperforming loans to period end loans		2.97	%		2.86	%		2.96	%		2.24	%		1.92	%
Percentage of nonperforming assets to period end loans		4.01	%		3.41	%		3.16	%		2.39	%		2.08	%
Percentage of nonperforming assets to period end assets		2.53	%		2.15	%		1.99	%		1.54	%		1.29	%
Nonperforming Assets - Vision Bank:
Nonaccrual loans	$	117,562		$	163,343		$	171,453		$	148,347		$	91,206
Renegotiated loans		-			-			-			-			2,845
Loans past due 90 days or more		980			-			364			11,277			644
Total nonperforming loans	$	118,542		$	163,343		$	171,817		$	159,624		$	94,695
Other real estate owned		5,050			24,341			35,940			35,203			19,699
Total nonperforming assets	$	123,592		$	187,684		$	207,757		$	194,827		$	114,394
Percentage of nonperforming loans to period end loans		20.97	%		26.06	%		26.82	%		23.58	%		13.71	%
Percentage of nonperforming assets to period end loans		21.87	%		29.95	%		32.43	%		28.78	%		16.57	%
Percentage of nonperforming assets to period end assets		16.46	%		23.40	%		25.71	%		21.70	%		12.47	%
New nonaccrual loan information:
Nonaccrual loans, beginning of period	$	278,819		$	289,268		$	233,544		$	159,512		$	101,128
New nonaccrual loans - Ohio-based operations		22,439			8,674			85,081			57,641			58,161
New nonaccrual loans - Vision Bank		2,980			5,994			90,094			126,540			83,588
Resolved nonaccrual loans		65,548			25,117			119,451			110,149			83,365
Nonaccrual loans, end of period	$	238,690		$	278,819		$	289,268		$	233,544		$	159,512
Impaired Commercial Loan Portfolio Information (period end):
Unpaid principal balance	$	289,090		$	294,355		$	304,534		$	245,092		$	171,310
Prior charge-offs		88,690			55,396			53,601			43,949			29,967
Remaining principal balance		200,400			238,959			250,933			201,143			141,343
Specific reserves		32,810			47,287			43,459			36,721			8,875
Book value, after specific reserve	$	167,590		$	191,672		$	207,474		$	164,422		$	132,468
Vision Bank Commercial Land & Development (CL&D) Loan Portfolio Information:
CL&D loans	$	111,054		$	161,140		$	170,989		$	218,263		$	251,443
Performing CL&D loans		64,207			79,080			84,498			132,380			191,712
Impaired CL&D loans		46,847			82,060			86,491			85,883			59,731
Specific reserve on impaired CL&D loans		11,763			25,543			23,585			21,802			3,134
Cumulative charge-offs on impaired CL&D loans		49,692			30,538			28,652			24,931			18,839
Specific reserves plus cumulative charge-offs	$	61,455		$	56,081		$	52,237		$	46,733		$	21,973
Specific reserves plus cumulative charge-offs as a % of impaired CL&D loans plus cumulative charge-offs		63.7	%		49.8	%		45.4	%		42.2	%		28.0	%