Park National (PRK)

Risks

• Cautionary Statement Regarding Forward-Looking Information
• The economic impact of COVID-19 or any other pandemic could adversely affect our business, financial condition, liquidity, and results of operations.
• Changes in economic and political conditions could adversely affect our earnings and capital through declines in deposits, quality of investment securities, loan demand, our borrowers’ ability to repay loans, and the value of the collateral securing our loans.
• Changes in interest rates could have a material adverse effect on our financial condition, results of operations and cash flows.
• Changes in the general economic conditions and real estate valuations in our primary market areas could adversely impact results of operations, financial condition and cash flows.
• The transition away from the London Interbank Offered Rate ("LIBOR") as a reference rate for financial instruments could negatively affect our income and expenses and the value of various financial instruments.
• We are exposed to operational risk.
• Failures or material breaches in security of our systems, or those of third-party service providers, may have a material adverse effect on our results of operations and financial condition and the price of our Common Shares.
• We extend credit to a variety of customers based on certain internal standards and the judgment of our loan officers. Our credit standards and on-going process of credit assessment might not protect us from significant credit losses.
• Our business and financial results are subject to risks associated with the creditworthiness of our customers and counterparties.
• Our allowance for credit losses may prove to be insufficient to absorb the expected, lifetime losses in our loan portfolio.
• We may be required to repurchase loans we have sold or to indemnify loan purchasers under the terms of the sale agreements, which could adversely affect our liquidity, results of operations and financial condition.
• We operate in a highly competitive environment, in terms of the products and services we offer and the geographic markets in which we conduct business, as well as in our labor markets where we compete for talented employees. Competition could adversely impact our customer acquisition, growth and retention, as well as our credit spreads and product pricing, causing us to lose market share and deposits and revenues.
• We may elect or be compelled to seek additional capital in the future, but that capital may not be available when it is needed.
• Our ability to pay dividends on our Common Shares is limited.
• Legislative or regulatory changes or actions could adversely impact us or the businesses in which we are engaged.
• Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks.
• Deposit insurance premiums assessed on Park National Bank may increase and have a negative effect on Park’s results of operations.
• Changes in accounting standards, policies, estimates or procedures could impact our reported financial condition or results of operations.
• Our accounting estimates and risk management processes rely on analytical and forecasting models.
• Future expansion may adversely affect our financial condition and results of operations as well as dilute the interests of our shareholders and negatively affect the price of our Common Shares.
• Changes in retail distribution strategies and consumer behavior may adversely impact our investments in our financial service office premises and equipment and other assets and may lead to increased expenditures to change our retail distribution channel.
• We may be a defendant from time to time in a variety of litigation and other actions, which could have a material adverse effect on our financial condition, results of operations and cash flows.
• A default by another larger financial institution could adversely affect financial markets generally.
• Changes in tax laws could adversely affect our performance.
• Adverse changes in the financial markets may adversely impact our results of operations.