Park National in Newark, Ohio, reporter lower quarterly profit that reflected declines in service charges and higher expenses.

The $7.4 billion-asset company said in a press release Monday that its second-quarter net income fell 5% from a year earlier, to $20 million, or $1.30 a share.

Noninterest income declined 2.4% to $18.7 million because of lower service charges on deposits and ATM fees. Noninterest expense rose 1.4% to $45.3 million, with increases across several categories including marketing, employee benefits and insurance.

Net interest income rose by 1.7% to $57.4 million. Total loans rose 4.6% to $5 billion, while deposits increased 2% to $5.6 billion. The net interest margin widened by 3 basis points to 3.43%.

The loan-loss provision increased by 64% to $2.6 million. The company had $886,000 in net chargeoffs, which contrasted with $407,000 in net recoveries a year earlier.

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