Park National Corp. (PRK) in Newark, Ohio, beat quarterly earnings estimates after its asset quality improved.
The $6.7 billion-asset company earned $19 million in the third quarter, up 59% from a year earlier, it said Monday. Earnings per share of $1.23 were 5 cents higher than the average expectation of analysts polled by Bloomberg.
Park National's provision for loan losses declined 85%, to $2.5 million. It recovered $285,000 of previously charged-off loans, after recording net chargeoffs of $19.8 million a year earlier.
Park National's net interest income declined by 5%, to $55 million, as its net interest margin fell 25 basis points, to 3.61%.
Its noninterest income declined by 4%, to $17.4 million, after recording a $2 million loss related to its real estate holdings. Service charges and card income ticked up slightly from a year earlier. Noninterest expense dropped by 2%, to $44.7 million, as insurance costs and professional fees declined.
Park National's subsidiaries include 11 community banks and two specialty-finance companies. It sold off its Vision Bank unit last year. In July, Park National announced that Daniel Trautman would become its chief executive next year.