Park National (PRK) 8-K Park National Corporation Reports First Quarter 2012

April 17, 2012 Exhibit 99.1

Park National Corporation Reports First Quarter 2012

Financial Results and Continues $0.94 Quarterly Dividend

NEWARK, Ohio – Park National Corporation (Park) (NYSE Amex: PRK) today reported financial results for the three months ended March 31, 2012 (first quarter). Also, Park's Board of Directors approved a $0.94 per common share quarterly cash dividend, payable on June 8, 2012 to common shareholders of record as of May 23, 2012.

Net income for the first quarter of 2012 was $31.5 million, a 41.8 percent increase from the $22.2 million in net income for the same period in 2011. Net income per diluted common share was $1.95, a 44.4 percent increase from the $1.35 net income per diluted common share reported in the first quarter of 2011.

Net income for the period ended March 31, 2012 included a pre-tax gain of $22.2 million from the sale of substantially all of the performing loans, operating assets and the liabilities of Vision Bank, which closed on February 16, 2012. Net income for the period ended March 31, 2011 included a pre-tax gain of $6.6 million from the sale of investment securities.

“We were pleased to complete the sale of Vision Bank assets during the first quarter of 2012. The continued success of our community banks and specialty finance companies in Ohio will be far more apparent without the negative impact we have endured over the past few years,” said Park Chairman C. Daniel DeLawder. “We look forward to having more flexibility to take advantage of opportunities that may come our way as 2012 unfolds.”

Park Completes Sale of Vision Bank

On February 16, 2012, Park completed the purchase and assumption transaction between Park, Home BancShares, Inc. (Home) (NASDAQ: HOMB) and their respective subsidiary banks. Home subsidiary Centennial Bank purchased certain assets and liabilities of Vision Bank for a purchase price of $27.9 million. Centennial purchased performing loans with an unpaid principal balance of approximately $354 million, assumed ownership or operation of all 17 Vision Bank office locations, and assumed deposit liabilities of approximately $520 million. Certain other miscellaneous assets and liabilities were also purchased by Centennial. The remaining assets and liabilities were retained by Vision, which Park subsequently merged with and into a non-bank subsidiary of Park, SE Property Holdings, LLC.

As a result of the transaction, Park recorded a pre-tax gain of $22.2 million (after anticipated expenses directly related to the transaction). The transaction also decreased Park’s total assets during the first quarter of 2012. As of March 31, 2012, Park had total assets of $6.8 billion, compared to $7.0 billion at December 31, 2011 and $7.3 billion at March 31, 2011.

Park National Bank Results

Park’s community-banking subsidiary in Ohio, The Park National Bank, reported net income of $21.6 million for the first quarter of 2012, compared to net income of $29.0 million ($24.7 million, excluding the gain on sale of securities) for the same period in 2011. The Park National Bank had total assets of $6.6 billion at March 31, 2012, compared to $6.5 billion at March 31, 2011. This performance resulted in return on assets of 1.32 percent and 1.82 percent (1.53 percent, excluding the gain on sale of securities) for The Park National Bank in the first quarter of 2012 and 2011, respectively.

Headquartered in Newark, Ohio, Park National Corporation has $6.8 billion in total assets (as of March 31, 2012). Park consists of 11 community bank divisions, a non-bank subsidiary 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 also includes Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC.

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

Complete financial tables are listed below…

PARK NATIONAL CORPORATION

Financial Highlights

Three months ended March 31, 2012, December 31, 2011, and March 31, 2011

	2012			2011			2011			Percent change vs.
(in thousands, except share and per share data)	1st QTR			4th QTR			1st QTR			4Q '11			1Q '11
INCOME STATEMENT:
Net interest income	$	61,728		$	66,279		$	69,313			-6.9	%		-10.9	%
Provision for loan losses		9,000			20,218			14,100			-55.5	%		-36.2	%
Gain on sale of Vision Bank		22,167			-			-			N.M.			N.M.
Other income		17,453			17,885			15,030			-2.4	%		16.1	%
Gain on sale of securities		-			3,367			6,635			-100.0	%		N.M.
Total other expense		47,808			49,365			46,346			-3.2	%		3.2	%
Income before income taxes	$	44,540		$	17,948		$	30,532			148.2	%		45.9	%
Federal income taxes		13,065			1,251			8,336			944.4	%		56.7	%
State income taxes		-			6,088			-			N.M.			N.M.
Net income	$	31,475		$	10,609		$	22,196			196.7	%		41.8	%
Preferred stock dividends and accretion		1,477			1,464			1,464			0.9	%		0.9	%
Net income available to common shareholders	$	29,998		$	9,145		$	20,732			228.0	%		44.7	%
MARKET DATA:
Earnings per common share - basic (b)	$	1.95		$	0.59		$	1.35			230.5	%		44.4	%
Earnings per common share - diluted (b)		1.95			0.59			1.35			230.5	%		44.4	%
Cash dividends per common share		0.94			0.94			0.94			0.0	%		0.0	%
Common book value per common share at period end		42.71			41.82			41.07			2.1	%		4.0	%
Stock price per common share at period end		69.17			65.06			66.82			6.3	%		3.5	%
Market capitalization at period end		1,065,626			1,002,309			1,028,956			6.3	%		3.6	%
Weighted average common shares - basic (a)		15,405,910			15,403,861			15,398,930			0.0	%		0.0	%
Weighted average common shares - diluted (a)		15,417,745			15,403,861			15,403,420			0.1	%		0.1	%
Common shares outstanding at period end		15,405,905			15,405,912			15,398,923			0.0	%		0.0	%
PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b)		1.75	%		0.51	%		1.16	%		243.1	%		50.9	%
Return on average common equity (a)(b)		18.50	%		5.53	%		13.25	%		234.5	%		39.6	%
Yield on loans		5.52	%		5.59	%		5.63	%		-1.3	%		-2.0	%
Yield on investments		3.34	%		3.53	%		4.01	%		-5.4	%		-16.7	%
Yield on money markets		0.25	%		0.25	%		0.10	%		0.0	%		150.0	%
Yield on earning assets		4.81	%		4.93	%		5.14	%		-2.4	%		-6.4	%
Cost of interest bearing deposits		0.56	%		0.60	%		0.74	%		-6.7	%		-24.3	%
Cost of borrowings		2.73	%		2.68	%		2.50	%		1.9	%		9.2	%
Cost of paying liabilities		1.05	%		1.07	%		1.14	%		-1.9	%		-7.9	%
Net interest margin		3.97	%		4.08	%		4.21	%		-2.7	%		-5.7	%
Efficiency ratio (g)		60.05	%		58.34	%		54.61	%		2.9	%		10.0	%
OTHER RATIOS (NON GAAP):
Annualized return on average tangible assets (a)(b)(e)		1.77	%		0.52	%		1.17	%		240.4	%		51.3	%
Annualized return on average tangible common equity (a)(b)(c)		20.85	%		6.25	%		15.11	%		233.6	%		38.0	%
Tangible common book value per common share (d)	$	37.97		$	36.96		$	36.02			2.7	%		5.4	%

PARK NATIONAL CORPORATION

Financial Highlights (continued)

Three months ended March 31, 2012, December 31, 2011, and March 31, 2011

										Percent change vs.
BALANCE SHEET:	March 31, 2012			December 31, 2011			March 31, 2011			4Q '11			1Q '11
Investment securities	$	1,857,335		$	1,708,473		$	2,045,656			8.7	%		-9.2	%
Loans		4,324,383			4,317,099			4,750,975			0.2	%		-9.0	%
Allowance for loan losses		59,758			68,444			148,530			-12.7	%		-59.8	%
Goodwill and other intangibles		73,088			74,843			77,708			-2.3	%		-5.9	%
Other real estate owned		41,965			42,272			45,268			-0.7	%		-7.3	%
Assets HFS		-			382,462			-			N.M.			N.M.
Total assets		6,776,851			6,972,245			7,323,105			-2.8	%		-7.5	%
Total deposits		4,817,388			4,465,114			5,314,678			7.9	%		-9.4	%
Borrowings		1,133,738			1,162,026			1,178,678			-2.4	%		-3.8	%
Liabilities HFS		-			536,186			-			N.M.			N.M.
Stockholders' equity		756,429			742,364			729,940			1.9	%		3.6	%
Common equity		658,057			644,218			632,436			2.1	%		4.1	%
Tangible common equity (d)		584,969			569,375			554,728			2.7	%		5.5	%
Nonperforming loans		217,663			224,575			279,079			-3.1	%		-22.0	%
Nonperforming assets		259,628			266,847			324,347			-2.7	%		-20.0	%
Past due 90 day loans and still accruing		2,281			3,489			2,228			-34.6	%		2.4	%
ASSET QUALITY RATIOS:
Loans as a % of period end assets		63.81	%		61.92	%		64.88	%		3.1	%		-1.6	%
Nonperforming loans as a % of period end loans		5.03	%		5.20	%		5.87	%		-3.3	%		-14.3	%
Past due 90 day loans as a % of period end loans		0.05	%		0.08	%		0.05	%		-37.5	%		0.0	%
Nonperforming assets / Period end loans + OREO		5.95	%		6.12	%		6.76	%		-2.8	%		-12.0	%
Allowance for loan losses as a % of period end loans		1.38	%		1.58	%		3.13	%		-12.7	%		-55.9	%
Net loan charge-offs	$	17,024		$	45,764		$	9,146			-62.8	%		86.1	%
Annualized net loan charge-offs as a % of average loans (a)		1.53	%		3.88	%		0.78	%		-60.6	%		96.2	%
CAPITAL & LIQUIDITY:
Total equity / Period end assets		11.16	%		10.65	%		9.97	%		4.8	%		11.9	%
Common equity / Period end assets		9.71	%		9.24	%		8.64	%		5.1	%		12.4	%
Tangible common equity (d) / Tangible assets (f)		8.73	%		8.25	%		7.66	%		5.8	%		14.0	%
Average equity / Average assets (a)		10.88	%		10.63	%		10.08	%		2.4	%		7.9	%
Average equity / Average loans (a)		16.73	%		16.13	%		15.43	%		3.7	%		8.4	%
Average loans / Average deposits (a)		90.82	%		91.96	%		91.19	%		-1.2	%		-0.4	%
N.M. - Not meaningful

PARK NATIONAL CORPORATION

Financial Highlights (continued)

a) Averages are for the quarters ended March 31, 2012, December 31, 2011, and March 31, 2011.

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

(c) 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
	March 31, 2012		December 31, 2011		March 31, 2011
AVERAGE STOCKHOLDERS' EQUITY	$	750,505	$	754,168	$	731,789
Less:  Average preferred stock		98,242		98,023		97,380
Average goodwill and other intangibles		73,619		76,041		78,067
AVERAGE TANGIBLE COMMON EQUITY	$	578,644	$	580,104	$	556,342

(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: 

	March 31, 2012		December 31, 2011		March 31, 2011
STOCKHOLDERS' EQUITY	$	756,429	$	742,364	$	729,940
Less: Preferred stock		98,372		98,146		97,504
Goodwill and other intangibles		73,088		74,843		77,708
TANGIBLE COMMON EQUITY	$	584,969	$	569,375	$	554,728

(e) 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.

RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS: 

	THREE MONTHS ENDED
	March 31, 2012		December 31, 2011		March 31, 2011
AVERAGE ASSETS	$	6,896,548	$	7,092,437	$	7,258,420
Less:  Average goodwill and other intangibles		73,619		76,041		78,067
AVERAGE TANGIBLE ASSETS	$	6,822,929	$	7,016,396	$	7,180,353

(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: 

	March 31, 2012		December 31, 2011		March 31, 2011
TOTAL ASSETS	$	6,776,851	$	6,972,245	$	7,323,105
Less: Goodwill and other intangibles		73,088		74,843		77,708
TANGIBLE ASSETS	$	6,703,763	$	6,897,402	$	7,245,397

PARK NATIONAL CORPORATION

Financial Highlights (continued)

(g) Efficiency ratio is calculated by taking total other expense divided 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 FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME 

	THREE MONTHS ENDED
	March 31, 2012		December 31, 2011		March 31, 2011
Interest income	$	74,838	$	80,231	$	84,662
Fully taxable equivalent adjustment		427		456		518
Fully taxable equivalent interest income	$	75,265	$	80,687	$	85,180
Interest expense		13,110		13,952		15,349
Fully taxable equivalent net interest income	$	62,155	$	66,735	$	69,831

PARK NATIONAL CORPORATION

Consolidated Statements of Income

	Three Months Ended
	March 31,
(in thousands, except share and per share data)	2012		2011
Interest income:
Interest and fees on loans	$	61,105	$	65,454
Interest on:
Obligations of U.S. Government, its agencies and other securities		13,584		19,053
Obligations of states and political subdivisions		46		149
Other interest income		103		6
Total interest income		74,838		84,662
Interest expense:
Interest on deposits:
Demand and savings deposits		754		991
Time deposits		4,639		6,734
Interest on borrowings		7,717		7,624
Total interest expense		13,110		15,349
Net interest income		61,728		69,313
Provision for loan losses		9,000		14,100
Net interest income after provision for loan losses		52,728		55,213
Gain on sale of Vision Bank		22,167
Other income		17,453		15,030
Gain on sale of securities		-		6,635
Other expense:
Salaries and employee benefits		24,823		25,064
Occupancy expense		2,670		3,000
Furniture and equipment expense		2,621		2,657
Other expense		17,694		15,625
Total other expense		47,808		46,346
Income before income taxes		44,540		30,532
Income taxes		13,065		8,336
Net income	$	31,475	$	22,196
Preferred stock dividends and accretion		1,477		1,464
Net income available to common shareholders	$	29,998	$	20,732
Per Common Share:
Net income  - basic	$	1.95	$	1.35
Net income  - diluted	$	1.95	$	1.35
Weighted average shares - basic		15,405,910		15,398,930
Weighted average shares - diluted		15,417,745		15,403,420

PARK NATIONAL CORPORATION

Consolidated Balance Sheets

(in thousands, except share data)	March 31, 2012			December 31, 2011
Assets
Cash and due from banks	$	121,730		$	137,770
Money market instruments		39,400			19,716
Investment securities		1,857,335			1,708,473
Loans		4,324,383			4,317,099
Allowance for loan losses		59,758			68,444
Loans, net		4,264,625			4,248,655
Bank premises and equipment, net		52,157			53,741
Goodwill and other intangibles		73,088			74,843
Other real estate owned		41,965			42,272
Other assets		326,551			304,313
Assets held for sale		0			382,462
Total assets	$	6,776,851		$	6,972,245
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing	$	1,055,745		$	995,733
Interest bearing		3,761,643			3,469,381
Total deposits		4,817,388			4,465,114
Borrowings		1,133,738			1,162,026
Other liabilities		69,296			66,555
Liabilities held for sale		0			536,186
Total liabilities	$	6,020,422		$	6,229,881
Stockholders' Equity:
Preferred Stock (200,000 shares authorized in 2011 and 2010; 100,000 shares issued in 2011 and 2010)	$	98,372		$	98,146
Common stock (No par value; 20,000,000 shares authorized in 2011 and 2010;  16,151,014 shares issued at March 31, 2012, and 16,151,021 at December 31, 2011)		301,201			301,202
Common stock warrants		4,297			4,297
Accumulated other comprehensive loss, net of taxes		(10,508	)		(8,831	)
Retained earnings		440,074			424,557
Treasury stock (745,109 shares at March 31, 2012, and 745,109 shares at December 31, 2011)		(77,007	)		(77,007	)
Total stockholders' equity	$	756,429		$	742,364
Total liabilities and stockholders' equity	$	6,776,851		$	6,972,245

PARK NATIONAL CORPORATION

Consolidated Average Balance Sheets

	Three Months Ended
	March 31,
(in thousands)	2012			2011
Assets
Cash and due from banks	$	136,480		$	120,339
Money market instruments		168,880			26,948
Investment securities		1,663,891			1,970,950
Loans		4,485,074			4,743,075
Allowance for loan losses		70,441			146,689
Loans, net		4,414,633			4,596,386
Bank premises and equipment, net		60,398			69,894
Goodwill and other intangibles		73,619			78,067
Other real estate owned		42,663			45,171
Other assets		335,984			350,665
Total assets	$	6,896,548		$	7,258,420
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing	$	1,047,062		$	956,059
Interest bearing		3,891,482			4,245,255
Total deposits		4,938,544			5,201,314
Borrowings		1,139,028			1,239,166
Other liabilities		68,471			86,151
Total liabilities	$	6,146,043		$	6,526,631
Stockholders' Equity:
Preferred stock	$	98,242		$	97,380
Common stock		301,202			301,204
Common stock warrants		4,297			4,473
Accumulated other comprehensive loss, net of taxes		(8,357	)		(4,753	)
Retained earnings		432,128			411,218
Treasury stock		(77,007	)		(77,733	)
Total stockholders' equity	$	750,505		$	731,789
Total liabilities and stockholders' equity	$	6,896,548		$	7,258,420

Note: The average balances for the quarter ended March 31, 2012 include those assets and liabilities held for sale as part of the sale of Vision Bank assets and assumption of Vision Bank liabilities to Centennial Bank.

PARK NATIONAL CORPORATION

Consolidated Statements of Income - Linked Quarters

	2012		2011		2011		2011		2011
(in thousands, except per share data)	1st QTR		4th QTR		3rd QTR		2nd QTR		1st QTR
Interest income:
Interest and fees on loans	$	61,105	$	65,497	$	65,645	$	65,862	$	65,454
Interest on:
Obligations of U.S. Government, its agencies and other securities		13,584		14,571		16,289		18,960		19,053
Obligations of states and political subdivisions		46		61		69		92		149
Other interest income		103		102		62		8		6
Total interest income		74,838		80,231		82,065		84,922		84,662
Interest expense:
Interest on deposits:
Demand and savings deposits		754		894		976		951		991
Time deposits		4,639		5,247		5,661		6,200		6,734
Interest on borrowings		7,717		7,811		7,808		7,749		7,624
Total interest expense		13,110		13,952		14,445		14,900		15,349
Net interest income		61,728		66,279		67,620		70,022		69,313
Provision for loan losses		9,000		20,218		16,438		12,516		14,100
Net interest income after provision for loan losses		52,728		46,061		51,182		57,506		55,213
Gain on sale of Vision Bank		22,167
Other income		17,453		17,885		18,027		15,139		15,030
Gain on sale of securities		-		3,367		3,465		15,362		6,635
Other expense:
Salaries and employee benefits		24,823		25,952		25,799		25,253		25,064
Occupancy expense		2,670		2,866		2,665		2,764		3,000
Furniture and equipment expense		2,621		2,643		2,688		2,785		2,657
Other expense		17,694		17,904		14,447		16,205		15,625
Total other expense		47,808		49,365		45,599		47,007		46,346
Income before income taxes		44,540		17,948		27,075		41,000		30,532
Income taxes		13,065		7,339		6,694		12,046		8,336
Net income	$	31,475	$	10,609	$	20,381	$	28,954	$	22,196
Preferred stock dividends and accretion		1,477		1,464		1,464		1,464		1,464
Net income available to common shareholders	$	29,998	$	9,145	$	18,917	$	27,490	$	20,732
Per Common Share:
Net income  - basic	$	1.95	$	0.59	$	1.23	$	1.79	$	1.35
Net income  - diluted	$	1.95	$	0.59	$	1.23	$	1.79	$	1.35

PARK NATIONAL CORPORATION

Detail of other income and other expense - Linked Quarters

	2012			2011			2011			2011			2011
(in thousands)	1st QTR			4th QTR			3rd QTR			2nd QTR			1st QTR
Other income:
Income from fiduciary activities	$	3,828		$	3,699		$	3,615		$	3,929		$	3,722
Service charges on deposits		4,071			4,643			4,894			4,525			4,245
Other service income		2,734			2,484			3,087			2,734			2,301
Checkcard fee income		3,172			3,115			3,154			3,251			2,976
Bank owned life insurance income		1,202			1,403			1,229			1,228			1,229
ATM fees		608			641			726			682			654
OREO devaluations		(1,359	)		(1,742	)		(588	)		(3,354	)		(2,535	)
Gain on sale of Vision Bank		22,167			-			-			-			-
Other		3,197			3,642			1,910			2,144			2,438
Total other income	$	39,620		$	17,885		$	18,027		$	15,139		$	15,030
Other expense:
Salaries and employee benefits	$	24,823		$	25,952		$	25,799		$	25,253		$	25,064
Net occupancy expense		2,670			2,866			2,665			2,764			3,000
Furniture and equipment expense		2,621			2,643			2,688			2,785			2,657
Data processing fees		1,200			1,393			1,184			1,135			1,253
Professional fees and services		5,581			5,920			5,005			5,320			4,874
Amortization of intangibles		1,754			1,528			669			669			669
Marketing		843			852			764			728			623
Insurance		1,490			1,526			681			2,345			2,269
Communication		1,537			1,544			1,475			1,485			1,556
Other		5,289			5,141			4,669			4,523			4,381
Total other expense	$	47,808		$	49,365		$	45,599		$	47,007		$	46,346

PARK NATIONAL CORPORATION

Asset Quality Information

	Quarter ended				Year ended December 31,
(in thousands, except ratios)	March 31, 2012				2011			2010			2009			2008
Allowance for loan losses:
Allowance for loan losses, beginning of period	$	68,444			$	143,575		$	116,717		$	100,088		$	87,102
Transfer of loans at fair value						(219	)
Transfer of allowance to held for sale						(13,100	)
Charge-offs		18,967	(A)			133,882			66,314			59,022			62,916
Recoveries		1,943				8,798			6,092			6,830			5,415
Net charge-offs		17,024				125,084			60,222			52,192			57,501
Provision for loan losses		8,338				63,272			87,080			68,821			70,487
Allowance for loan losses, end of period	$	59,758			$	68,444		$	143,575		$	116,717		$	100,088
Provision for Centennial Bank loan put		662
Allowance for credit losses, end of period	$	60,420			$	68,444		$	143,575		$	116,717		$	100,088
				��
(A)Includes the full charge-off of the Vision Bank ALLL of $12.1 million to bring the retained Vision Bank loan portfolio to fair value prior to the merger of Vision Bank (as constituted following the transaction with Centennial Bank and Home BancShares, Inc.) with and into SE Property Holdings, LLC ("SE LLC"), the non-bank subsidiary of Park, on February 16, 2012.
General reserve trends:
Allowance for loan losses, end of period	$	59,758			$	68,444		$	143,575		$	116,717		$	100,088
Specific reserves		9,505				15,935			66,904			36,721			8,875
General reserves	$	50,253			$	52,509		$	76,671		$	79,996		$	91,213
Total loans	$	4,324,383			$	4,317,099		$	4,732,685		$	4,640,432		$	4,491,337
Impaired commercial loans		179,293				187,074			250,933			201,143			141,343
Non-impaired loans	$	4,145,090			$	4,130,025		$	4,481,752		$	4,439,289		$	4,349,994
Asset Quality Ratios:
Net charge-offs as a % of average loans  (annualized for quarterly periods)		1.53	%			2.65	%		1.30	%		1.14	%		1.32	%
Allowance for loan losses as a % of period end loans		1.38	%			1.59	%		3.03	%		2.52	%		2.23	%
General reserves as a % of non-impaired loans		1.21	%			1.27	%		1.71	%		1.80	%		2.10	%
Nonperforming Assets - Park National Corporation:
Nonaccrual loans	$	183,227			$	195,106		$	289,268		$	233,544		$	159,512
Accruing renegotiated loans		34,436				28,607			-			142			2,845
Loans past due 90 days or more		2,281				3,489			3,590			14,773			5,421
Total nonperforming loans	$	219,944			$	227,202		$	292,858		$	248,459		$	167,778
Other real estate owned - Park National Bank		13,387				13,240			8,385			6,037			6,149
Other real estate owned - SE LLC		28,578				29,032			-			-			-
Other real estate owned - Vision Bank		-				-			33,324			35,203			19,699
Total nonperforming assets	$	261,909			$	269,474		$	334,567		$	289,699		$	193,626
Percentage of nonaccrual loans to period end loans		4.24	%			4.52	%		6.11	%		5.03	%		3.55	%
Percentage of nonperforming loans to period end loans		5.09	%			5.26	%		6.19	%		5.35	%		3.74	%
Percentage of nonperforming assets to period end loans		6.06	%			6.24	%		7.07	%		6.24	%		4.31	%
Percentage of nonperforming assets to period end assets		3.86	%			3.86	%		4.59	%		4.11	%		2.74	%

PARK NATIONAL CORPORATION

Asset Quality Information

	Quarter ended			Year ended December 31,
(in thousands, except ratios)	March 31, 2012			2011			2010			2009			2008
Nonperforming Assets - Park National Bank and Guardian:
Nonaccrual loans	$	102,886		$	96,113		$	117,815		$	85,197		$	68,306
Accruing renegotiated loans		32,451			26,342			-			142			-
Loans past due 90 days or more		2,281			3,367			3,226			3,496			4,777
Total nonperforming loans	$	137,618		$	125,822		$	121,041		$	88,835		$	73,083
Other real estate owned - Park National Bank		13,387			13,240			8,385			6,037			6,149
Total nonperforming assets	$	151,005		$	139,062		$	129,426		$	94,872		$	79,232
Percentage of nonaccrual loans to period end loans		2.43	%		2.29	%		2.88	%		2.15	%		1.80	%
Percentage of nonperforming loans to period end loans		3.26	%		3.00	%		2.96	%		2.24	%		1.92	%
Percentage of nonperforming assets to period end loans		3.57	%		3.32	%		3.16	%		2.39	%		2.08	%
Percentage of nonperforming assets to period end assets		2.29	%		2.21	%		1.99	%		1.53	%		1.27	%
Nonperforming Assets -SE LLC/Vision Bank (retained portfolio as of March 31, 2012 and December 31, 2011):
Nonaccrual loans	$	80,341		$	98,993		$	171,453		$	148,347		$	91,206
Accruing renegotiated loans		1,985			2,265			-			-			2,845
Loans past due 90 days or more		-			122			364			11,277			644
Total nonperforming loans	$	82,326		$	101,380		$	171,817		$	159,624		$	94,695
Other real estate owned - Vision Bank		-			-			33,324			35,023			19,699
Other real estate owned - SE LLC		28,578			29,032			-			-			-
Total nonperforming assets	$	110,904		$	130,412		$	205,141		$	194,647		$	114,394
Percentage of nonaccrual loans to period end loans		N.M.			N.M.			26.77	%		21.91	%		13.21	%
Percentage of nonperforming loans to period end loans		N.M.			N.M.			26.82	%		23.58	%		13.71	%
Percentage of nonperforming assets to period end loans		N.M.			N.M.			32.02	%		28.78	%		16.57	%
Percentage of nonperforming assets to period end assets		N.M.			N.M.			25.90	%		21.70	%		12.47	%
New nonaccrual loan information:
Nonaccrual loans, beginning of period	$	195,106		$	289,268		$	233,544		$	159,512		$	101,128
New nonaccrual loans - Ohio-based operations		21,210			78,316			85,081			57,641			58,161
New nonaccrual loans - SE LLC/Vision Bank (SE LLC as of March 31, 2012)		568			45,842			90,094			126,540			83,588
Resolved nonaccrual loans		33,657			218,320			119,451			110,149			83,365
Nonaccrual loans, end of period	$	183,227		$	195,106		$	289,268		$	233,544		$	159,512
Impaired Commercial Loan Portfolio Information (period end):
Unpaid principal balance	$	287,623		$	290,908		$	304,534		$	245,092		$	171,310
Prior charge-offs		108,330			103,834			53,601			43,949			29,967
Remaining principal balance		179,293			187,074			250,933			201,143			141,343
Specific reserves		9,505			15,935			66,904			36,721			8,875
Book value, after specific reserve	$	169,788		$	171,139		$	184,029		$	164,422		$	132,468

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 the 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; changes in interest 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; changes in unemployment; asset/liability repricing risks and liquidity risks; our liquidity requirements could be adversely affected by changes in our assets and liabilities; competitive factors among financial service organizations 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 “Dodd-Frank Act”), as well as future regulations which will be adopted by the relevant regulatory agencies, including the Consumer Financial Protection Bureau, to implement the Dodd-Frank Act’s provisions; the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board, the SEC, the Public Company Accounting Oversight Board and other regulatory agencies, and the accuracy of our assumptions and estimates used to prepare our financial statements; the effect of fiscal and governmental policies of the United States federal government; adequacy of our risk management program; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors and other service providers, including as a result of cyber attacks; 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, 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