Park National Corp. in Newark, Ohio, announced late Tuesday that it would take a $54 million goodwill impairment charge for the fourth quarter because of the deteriorating loan portfolio of a Florida bank it acquired last year.
The $6.5 billion-asset Park National, a 12-bank holding company, acquired Vision Bank in Panama City in March for $171.1 million in cash and stock. In a press release, Park National executives said that they were aware real estate conditions were softening Panama City and Gulf Shores, Ala., when their company bought Vision but were caught off guard by the swiftness of the decline.
Park National has yet to report fourth-quarter earnings, but it said it expects to report a net loss of $9.5 million for Vision.
"We understood the risks associated with potential negative changes in market conditions, but we did not anticipate the abruptness nor the severity of changes experienced since last summer," said C. Daniel DeLawder, Park National's chairman. "We reaffirm our belief in the long-term value of the two Vision Bank divisions."
