Park National (PRK) in Newark, Ohio, warned that a loan chargeoff may lower earnings per share for the third quarter by as much as 41%.
One of its loans may require a chargeoff and related loan-loss provision of as much as $13 million, the $6.7 billion-asset company said Tuesday. Diluted earnings per common share would be 78 cents for the third quarter and $3.82 for the nine months that ended Sept. 30 if the full charges are taken.
If no chargeoff or loan-loss provision is required, then earnings per share would be $1.33 for the third quarter and $4.37 for the first nine months of the year.
For the second quarter, Park National had reported earnings per share of $1.10 and net chargeoffs of $6.5 million.
Management is seeking additional information about the loan before the scheduled release of its third-quarter results on Oct. 29, Park National said.
