# PARK NATIONAL CORP /OH/ (PRK) Informational only - not investment advice. CIK: 0000805676 SIC: 6021 National Commercial Banks SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6021 National Commercial Banks](/industry/6021/) Latest 10-K filed: 2026-02-23 SEC page: https://www.sec.gov/edgar/browse/?CIK=805676 Filing source: https://www.sec.gov/Archives/edgar/data/805676/000080567626000017/prk-20251231.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 664421000 | USD | 2025 | 2026-02-23 | | Net income | 180073000 | USD | 2025 | 2026-02-23 | | Assets | 9805013000 | USD | 2025 | 2026-02-23 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000805676.json. Derived margins are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | | | 514,182,000 | 564,304,000 | 645,553,000 | 664,421,000 | | Net income | 86,135,000 | 84,242,000 | 110,387,000 | 102,700,000 | 127,923,000 | 153,945,000 | 148,351,000 | 126,734,000 | 151,420,000 | 180,073,000 | | Diluted EPS | 5.59 | 5.47 | 7.07 | 6.29 | 7.80 | 9.37 | 9.06 | 7.80 | 9.32 | 11.11 | | Assets | 7,467,586,000 | 7,537,620,000 | 7,804,308,000 | 8,558,377,000 | 9,279,021,000 | 9,560,254,000 | 9,854,993,000 | 9,836,453,000 | 9,805,350,000 | 9,805,013,000 | | Liabilities | 6,725,346,000 | 6,781,519,000 | 6,971,802,000 | 7,589,363,000 | 8,238,765,000 | 8,449,495,000 | 8,785,767,000 | 8,691,160,000 | 8,561,502,000 | 8,452,220,000 | | Stockholders' equity | 742,240,000 | 756,101,000 | 832,506,000 | 969,014,000 | 1,040,256,000 | 1,110,759,000 | 1,069,226,000 | 1,145,293,000 | 1,243,848,000 | 1,352,793,000 | | Cash and cash equivalents | 146,446,000 | 169,112,000 | 167,214,000 | 159,956,000 | 370,474,000 | 219,180,000 | 189,728,000 | 218,268,000 | 160,566,000 | 233,513,000 | | Net margin | | | | | | | 28.85% | 22.46% | 23.46% | 27.10% | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000805676.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | 2.10 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 2.57 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 2.07 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 114,674,000 | 31,584,000 | 1.94 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 120,889,000 | 36,917,000 | 2.28 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 125,206,000 | 24,500,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 126,640,000 | 35,204,000 | 2.17 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 128,904,000 | 39,369,000 | 2.42 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 133,808,000 | 38,217,000 | 2.35 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 133,613,000 | 38,630,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 132,200,000 | 42,157,000 | 2.60 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 136,496,000 | 48,119,000 | 2.97 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 138,952,000 | 47,158,000 | 2.92 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 136,892,000 | 42,639,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 154,777,000 | 41,687,000 | 2.39 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/805676/000080567626000039/prk-20260331.htm Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high Filing date: 2026-05-11 Report date: 2026-03-31 ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Non-U.S. GAAP Financial Measures This Management's Discussion and Analysis of Financial Condition and Results of Operations (or "MD&A") contains non-U.S. GAAP financial measures where management believes them to be helpful in understanding Park’s results of operations or financial position. Where non-U.S. GAAP financial measures are used, the comparable U.S. GAAP financial measures, as well as the reconciliation from the comparable U.S. GAAP financial measures, can be found herein. Items Impacting Comparability of Period Results From time to time, revenue, expenses and/or taxes are impacted by items judged by management of Park to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their impact is believed by management of Park at that time to be infrequent or short-term in nature. Most often, these items impacting comparability of period results are due to merger and acquisition activities and revenue and expenses related to former Vision Bank loan relationships. In other cases, they may result from management's decisions associated with significant corporate actions outside of the ordinary course of business. Even though certain revenue and expense items are naturally subject to more volatility than others due to changes in market and economic environment conditions, as a general rule volatility alone does not result in the inclusion of an item as one impacting comparability of period results. For example, changes in the provision for/(recovery of) credit losses (aside from those related to former Vision Bank loan relationships), gains (losses) on equity securities, net, and asset valuation adjustments, reflect ordinary banking activities and are, therefore, typically excluded from consideration as items impacting comparability of period results. Management believes the disclosure of items impacting comparability of period results provides a better understanding of Park's performance and trends and allows management to ascertain which of such items, if any, to include or exclude from an analysis of Park's performance; i.e., within the context of determining how that performance differed from expectations, as well as how, if at all, to adjust estimates of future performance taking such items into account. Items impacting comparability of the results of particular periods are not intended to be a complete list of items that may materially impact current or future period performance. Calculation of Non-U.S. GAAP Financial Measures Park's management uses certain non-U.S. GAAP financial measures to evaluate Park's performance. Specifically, management reviews the return on average tangible equity, the return on average tangible assets and pre-tax, pre-provision net income. Management has included in the tables included within the "Items Impacting Comparability" section of this MD&A information relating to the annualized return on average tangible equity, the annualized return on average tangible assets and pre-tax, pre-provision net income for the three months ended March 31, 2026 and March 31, 2025. For the purpose of calculating the annualized return on average tangible equity, a non-U.S. GAAP financial measure, net income for each period is divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating the annualized return on average tangible assets, a non-U.S. GAAP financial measure, net income for each period is divided by average tangible assets during the period. Average tangible assets equals average assets during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating pre-tax, pre-provision net income, a non-U.S. GAAP financial measure, income taxes and the provision for credit losses are added back to net income, in each case during the applicable period. Management believes that the disclosure of the annualized return on average tangible equity, the annualized return on average tangible assets and pre-provision net income presents additional information to the reader of the condensed consolidated financial statements, which, when read in conjunction with the condensed consolidated financial statements prepared in accordance with U.S. GAAP, assists in analyzing Park's operating performance, ensures comparability of operating performance from period to period, and facilitates comparisons with the performance of Park's peer financial holding companies and bank holding companies, while eliminating certain non-operational effects of acquisitions. In the tables included within the "Items Impacting Comparability" section of this MD&A, Park has provided a reconciliation of average tangible equity from average shareholders' equity, average tangible assets from average assets and pre-tax, pre-provision net income from net income solely for the purpose of complying with SEC Regulation G and not as an indication that the annualized return on average tangible equity, the annualized return on average tangible assets and pre-tax, pre-provision net 72 Table of Contents income are substitutes for the annualized return on average equity, the annualized return on average assets and net income, respectively, as determined in accordance with U.S. GAAP. FTE (fully taxable equivalent) Financial Measures Interest income, yields, and ratios on a FTE basis are considered non-U.S. GAAP financial measures. Management believes net interest income on a FTE basis provides an insightful picture of the interest margin for comparison purposes. The FTE basis also allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The FTE basis assumes a federal corporate income tax rate of 21 percent. In the tables included within the "Items Impacting Comparability" section of this MD&A, Park has provided a reconciliation of FTE interest income solely for the purpose of complying with SEC Regulation G and not as an indication that FTE interest income, yields and ratios are substitutes for interest income, yields and ratios, as determined in accordance with U.S. GAAP. Critical Accounting Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. Allowance for Credit Losses: Park believes the determination of the allowance for credit losses involves a higher degree of judgment and complexity than its other significant accounting policies. The allowance for credit losses is calculated with the objective of maintaining a reserve level believed by management to be sufficient to absorb estimated credit losses over the life of an asset or an off-balance sheet credit exposure. Management’s determination of the adequacy of the allowance for credit losses is based on periodic evaluations of past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. However, this evaluation has subjective components requiring material estimates, including expected default probabilities, the expected loss given default, the amounts and timing of expected future cash flows on individually evaluated loans, and estimated losses based on historical loss experience and forecasted economic conditions. All of these factors may be susceptible to significant change. To the extent that actual results differ from management estimates, additional provisions for credit losses may be required that would adversely impact earnings in future periods. One of the significant judgments impacting the ACL estimate is the economic forecasts for Ohio unemployment, Ohio GDP, and Ohio HPI. These economic forecasts inform the regression model used to calculate cash flows during the reasonable and supportable forecast period. Additionally, multiple economic forecast scenarios are weighted to arrive at the quantitative reserve. Changes in the economic forecast or weighting could significantly affect the estimated credit losses which could potentially lead to materially different allowance levels from one reporting period to the next. As noted above, in calculating the ACL, management weighs different scenarios, including a baseline (most likely) scenario and an adverse scenario. At March 31, 2026, management applied a 50% weighting to the baseline scenario and applied a 50% weighting to the adverse scenario. To create hypothetical sensitivity analyses, management calculated a quantitative allowance using a 100% weighting applied to a baseline scenario and a quantitative allowance using a 100% weighting applied to an adverse scenario. The adverse scenario assumes among other things that: (1) Russia’s invasion of Ukraine will persist longer than expected. Risk increases that China might block the Taiwan Strait. Business and consumer confidence declines. Declines in European economies and retaliatory tariffs hurt US exports and corporate earnings in subsidiaries. (2) The conflict between the US and Iran results in the Strait of Hormuz being closed longer than expected causing oil prices to rise to $107 per barrel in Q2 2026 compared to $76 in baseline. (3) The combination of recession and rising inflation cause the Federal Reserve to lower federal funds rates in Q2 2026 but only slightly below baseline for a couple of quarters. As the recession persists and inflation subsides the Federal Reserve subsequently reduces the federal funds rate more significantly. (4) Europe goes into a recession as increased tariffs lower exports. Populism in Europe rises, raising uncertainties about longevity of the Euro zone and causes financial stress to highly indebted nations, especially Italy. These developments further lower US exports and corporate earnings of foreign subsidiaries of US companies. (5) The tariff rate rises to 19%, more than the 11% in baseline, and it remains there through the end of 2028. There is full and permanent extension of the Tax Cuts and Jobs Act with enhancements included in the One Big Beautiful Bill Act. Growth in Medicaid and food assistance funding is reduced but rising health care costs will keep upward pressure on public health spending and the discretionary non-defense budget is capped below historic average. Defense spending is expected to grow. Tax revenues are lower than in the baseline creating a higher deficit and concerns about national debt level raises uncertainty over the course of tax policy. Though no crisis materializes, business and consumer sentiment is damaged. (6) Recession Q1 2026 and lasts through Q4 2026 and real GDP declines by 2.6%. Unemployment rate rises to a peak of 8.5% Q2 2027. Stock market falls 35% from Q1 2026 to Q4 2026. Excluding consideration of qualitative adjustments, this sensitivity analysis would result in a hypothetical increase in Park's ACL of $32.5 million as of March 31, 73 Table of Contents 2026 if only the adverse scenario was used. Excluding consideration of qualitative adjustments, a corresponding $32.5 million decrease in Park's ACL would occur in a hypothetical scenario if only the baseline (most likely) scenario was used. Refer to the "Credit Metrics and Provision for Credit Losses" section of this MD&A for additional discussion. Pension Plan: The determination of pension plan obligations and related expenses requires the use of assumpti [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. NON-U.S. GAAP FINANCIAL MEASURES Management's discussion and analysis contains non-U.S. GAAP financial measures where management believes it to be helpful in understanding Park’s results of operations or financial position. Where non-U.S. GAAP financial measures are used, the comparable U.S. GAAP financial measures, as well as the reconciliation from the comparable U.S. GAAP financial measures, can be found herein. Items Impacting Comparability of Period Results From time to time, revenue, expenses and/or taxes are impacted by items judged by management of Park to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their impact is believed by management of Park at that time to be infrequent or short-term in nature. Most often, these items impacting comparability of period results are due to merger and acquisition activities and revenue and expenses related to former Vision Bank loan relationships. In other cases, they may result from management's decisions associated with significant corporate actions outside of the ordinary course of business. Even though certain revenue and expense items are naturally subject to more volatility than others due to changes in market and economic environment conditions, as a general rule volatility alone does not result in the inclusion of an item as one impacting comparability of period results. For example, changes in the provision for credit losses (aside from those related to former Vision Bank loan relationships), gains (losses) on equity securities, net, and asset valuation adjustments, reflect ordinary banking activities and are, therefore, typically excluded from consideration as items impacting comparability of period results. Management believes the disclosure of items impacting comparability of period results provides a better understanding of Park's performance and trends and allows management to ascertain which of such items, if any, to include or exclude from an analysis of Park's performance; i.e., within the context of determining how that performance differed from expectations, as well as how, if at all, to adjust estimates of future performance taking such items into account. Items impacting comparability of the results of particular periods are not intended to be a complete list of items that may materially impact current or future period performance. Non-U.S. GAAP Financial Measures Park's management uses certain non-U.S. GAAP financial measures to evaluate Park's performance. Specifically, management reviews the return on average tangible equity, the return on average tangible assets, the tangible equity to tangible assets ratio, and pre-tax, pre-provision net income ("PTPP"). Management has included in this Management's Discussion and Analysis of Financial Condition and Results of Operation, information relating to the return on average tangible equity, the return on average tangible assets, the tangible equity to tangible assets ratio, and pre-tax, pre-provision net income for the years ended December 31, 2025, December 31, 2024, and December 31, 2023. For the purpose of calculating the return on average tangible equity, a non-U.S. GAAP financial measure, net income for each period is divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating the return on average tangible assets, a non-U.S. GAAP financial measure, net income for each period is divided by average tangible assets during the period. Average tangible assets equals average assets during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating the tangible equity to tangible assets ratio, a non-U.S. GAAP financial measure, tangible equity is divided by tangible assets. Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at period end. Tangible assets equal total assets less goodwill and other intangible assets, in each case at period end. For the purpose of calculating pre-tax, pre-provision net income, a non-U.S. GAAP financial measure, income taxes and the provision for credit losses are added back to net income, in each case during the applicable period. Management believes that the disclosure of the return on average tangible equity, the return on average tangible assets, the tangible equity to tangible assets ratio, and pre-tax, pre-provision net income presents additional information to the reader of the consolidated financial statements, which, when read in conjunction with the consolidated financial statements prepared in accordance with U.S. GAAP, assists in analyzing Park's operating performance, ensures comparability of operating performance from period to period, and facilitates comparisons with the performance of Park's peer financial holding -35- companies and bank holding companies, while eliminating certain non-operational effects of acquisitions. In the tables included within the "ANALYSIS OF EARNINGS - Items Impacting Comparability" section of this Management's Discussion and Analysis of Financial Condition and Results of Operations, Park has provided a reconciliation of average tangible equity from average shareholders' equity, average tangible assets from average assets, tangible equity from total shareholders' equity, tangible assets from total assets, and pre-tax, pre-provision net income from net income solely for the purpose of complying with SEC Regulation G and not as an indication that the return on average tangible equity, the return on average tangible assets, the tangible equity to tangible assets ratio, and pre-tax, pre-provision net income are substitutes for the return on average equity, the return on average assets, the total shareholders' equity to total assets ratio, and net income, respectively, as determined in accordance with U.S. GAAP FTE (fully taxable equivalent) Financial Measures Interest income, yields, and ratios on a FTE basis are considered non-U.S. GAAP financial measures. Management believes net interest income on a FTE basis provides an insightful picture of the interest margin for comparison purposes. The FTE basis also allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The FTE basis assumes a corporate federal statutory tax rate of 21%. In the tables included within the "ANALYSIS OF EARNINGS - Net Interest Income" section of this Management's Discussion and Analysis of Financial Condition and Results of Operations, Park has provided detail of FTE interest income solely for the purpose of complying with SEC Regulation G and not as an indication that FTE interest income, yields and ratios are substitutes for interest income, yields and ratios, as determined in accordance with U.S. GAAP. OVERVIEW The table below reflects Park's net income for the years ended December 31, 2025, 2024 and 2023. Table 1 - Summary Income Statement (In thousands) 2025 2024 2023 Net interest income $ 437,311  $ 398,019  $ 373,113  Provision for credit losses 11,488  14,543  2,904  Other income 119,881  122,588  92,634  Other expense 324,381  321,339  309,239  Income before income taxes $ 221,323  $ 184,725  $ 153,604      Income tax expense 41,250  33,305  26,870  Net income $ 180,073  $ 151,420  $ 126,734  Pre-tax, pre-provision net income (1) $ 232,811  $ 199,268  $ 156,508  (1) PTPP net income is calculated as net income, plus income taxes, plus the provision for credit losses, in each case during the applicable period. Net income for the year ended December 31, 2025 of $180.1 million represented a $28.7 million, or 18.9% increase compared to $151.4 million for the year ended December 31, 2024. Net income for the year ended December 31, 2024 of $151.4 million represented a $24.7 million, or 19.5%, increase compared to $126.7 million for the year ended December 31, 2023. Pre-tax, pre-provision net income (non-U.S. GAAP) for the year ended December 31, 2025 of $232.8 million represented a $33.5 million, or 16.8%, increase compared to $199.3 million for the year ended December 31, 2024. Pre-tax, pre-provision net income (non-U.S. GAAP) for the year ended December 31, 2024 of $199.3 million represented a $42.8 million, or 27.3%, increase compared to $156.5 million for the year ended December 31, 2023. Net income for each of the years ended December 31, 2025, 2024 and 2023, included several items of income and expense that impacted comparability of period results. These items are detailed in the "ANALYSIS OF EARNINGS - Items Impacting Comparability" section of this Management's Discussion and Analysis of Financial Condition and Results of Operations. DIVIDENDS ON COMMON SHARES Cash dividends declared on Park's common shares were $5.53 in 2025, $4.74 in 2024 and $4.20 in 2023. Dividends declared as a percentage of net income was 50%, 51% and 54% for 2025, 2024 and 2023, respectively. Park has historically targeted a dividend payout ratio of 50% each year. -36- The quarterly cash dividend on Park's common shares was $1.07 per share for the first, second, third and fourth quarters of 2025. Additionally, in the fourth quarter of 2025 there was a special cash dividend of $1.25 per share. The quarterly cash dividend on Park's common shares was $1.06 per share for the first, second, third, and fourth quarters of 2024. Additionally, in fourth quarter of 2024 there was a special cash dividend of $0.50 per share. The quarterly cash dividend on Park's common shares was $1.05 per share for each of the quarters of 2023 and there was no special dividend in 2023. Please see the discussion of limitations on Park's ability to pay dividends in the section captioned "Supervision and Regulation of Park and its Subsidiaries – Limits on Dividends and Other Payments" in "ITEM 1. BUSINESS" of this Annual Report on Form 10-K. CRITICAL ACCOUNTING ESTIMATES The significant accounting estimates used in the development and presentation of Park’s consolidated financial statements are listed in "Note 1 - Summary of Significant Accounting Policies" of the Notes to Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA."  The accounting and reporting estimates of Park conform with U.S. GAAP and general practices within the financial services industry.  The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes.  Actual results could differ from those estimates. Allowance for Credit Losses: Park believes the determination of the allowance for credit losses involves a higher degree of judgment and complexity than its other significant accounting policies. The allowance for credit losses is calculated with the objective of maintaining a reserve level believed by management to be sufficient to absorb estimated credit losses over the life of an asset or an off-balance sheet credit exposure. Management’s determination of the adequacy of the allowance for credit losses is based on periodic evaluations of past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. However, this evaluation has subjective components requiring material estimates, including expected default probabilities, the expected loss given default, the amounts and timing of expected future cash flows on individually evaluated loans, and estimated losses based on historical loss experience and forecasted economic conditions. All of these factors may be susceptible to significant change. To the extent that actual results differ from management estimates, additional provisions for credit losses may be required that would adversely impact earnings in future periods. One of the significant judgments impacting the ACL estimate is the economic forecasts for Ohio unemployment, Ohio GDP, and Ohio HPI. These economic forecasts inform the regression model used to calculate cash flows during the reasonable and supportable forecast period. Additionally, multiple economic forecast scenarios are weighted to arrive at the quantitative reserve. Changes in the economic forecast or weighting could significantly affect the estimated credit losses which could potentially lead to materially different allowance levels from one reporting period to the next. As noted above, in calculating the ACL, management weighs different scenarios, including a baseline (most likely) scenario and an adverse scenario. At December 31, 2025, management applied a 50% weighting to the baseline scenario and applied a 50% weighting to the adverse scenario. To create hypothetical sensitivity analyses, management calculated a quantitative allowance using a 100% weighting applied to a baseline scenario and a quantitative allowance using a 100% weighting applied to an adverse scenario. The adverse scenario assumes among other things that: (1) Worries that the Israel-Hamas conflict will widen and Russia’s invasion of the Ukraine will persist longer than expected. Risk grows that China may block the Taiwan Strait, causing business and consumer confidence to decline. Retaliatory tariffs reduce US exports and lead to a global downturn. (2) The combination of a recession and rising inflation causes the Federal Reserve to lower federal funds rates in Q1 2026 but only slightly below baseline for a couple of quarters. As a recession persists and inflation subsides, the Federal Reserve subsequently reduces the federal funds rate more significantly. (3) Europe goes into a recession as increased tariffs lower exports. Populism in Europe rises, raising uncertainties about longevity of the Euro zone and causes financial stress to highly indebted nations, especially Italy. These developments further lower US exports and corporate earnings of foreign subsidiaries of US companies. (4) Impacts of tariffs and deportations are significantly worse than expected. Tariff rate rises from about 19% and it remains there through the end of 2028. Retaliatory tariffs reduce US exports and lead to global turndown. Tax revenues are lower than in the baseline creating a higher deficit and concerns about national debt level raise uncertainty about the course of tax policy. Full extensions of the Tax Cuts and Jobs Act personal provisions are passed as well as increased state/local tax deductions, certain business tax provisions, and other tax credits/deductions do not expire. Growth in Medicaid funding is reduced and foreign aid funding remains capped. Defense and immigration spending will continue to rise. (5) Recession Q1 2026 and lasts through Q3 2026 and real GDP declines by 2.6%. Unemployment rate rises to a peak of 8.4% Q1 2027. Stock market falls 35% from Q1 2026 to Q3 2026. Excluding consideration of qualitative adjustments, this sensitivity analysis would result in a hypothetical increase in Park's ACL of $30.0 million as of December 31, 2025 if only the -37- adverse scenario was used. Excluding consideration of qualitative adjustments, a corresponding $30.0 million decrease in Park's ACL would occur in a hypothetical scenario if only the baseline (most likely) scenario was used. Refer to the “CREDIT METRICS AND PROVISION FOR CREDIT LOSSES” section within this "ITEM 7: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" for additional discussion. Pension Plan: The determination of pension plan obligations and related expenses requires the use of assumptions to estimate the amount of benefits that employees will earn while working, as well as the present value of those benefits. Annual pension income/expense is principally based on four components: (1) the value of benefits earned by employees for working during the year (service cost), (2) the increase in the liability due to the passage of time (interest cost), and (3) other gains and losses, reduced by (4) the expected return on plan assets for our pension plan. During the year ended December 31, 2024, Park exceeded the pension settlement threshold established in ASC 715-30 and recognized in income a pro-rata portion of the unamortized gain in accumulated other comprehensive loss (pension settlement gain). Significant assumptions used to measure our annual pension expense include: •the interest rate used to determine the present value of liabilities (discount rate); •certain employee-related factors, such as turnover, retirement age and mortality; •the expected return on assets in our funded pension plan; and •the rate of salary increases where benefits are based on earnings. The most significant of these assumptions is the discount rate and the expected return on assets. The discount rate utilized for the December 31, 2025 calculation was 5.95% and the expected return on plan assets was 6.92%. This compares to the discount rate utilized for the December 31, 2024 calculation of 5.89% and the expected return on plan assets of 6.92%. Presented below is the estimated impact on Park's projected benefit obligation ("PBO") and 2025 pension expense assuming changes in the significant assumptions. Table 2 - Pension Sensitivity Discount Rate Expected Return on Plan Assets (In thousands) - 25 BPS +25 BPS - 50 BPS +50 BPS Change in PBO $ 2,870  $ (2,730) N.A. N.A. Change in Pension Expense $ 260  $ (420) $ 1,170  $ (1,170) Our assumptions reflect our historical experience and management’s best judgment regarding future expectations. Due to the significant management judgment involved, our assumptions could have a material impact on the measurement of our pension plan income/expense and obligation.  ABOUT OUR BUSINESS Through our national bank subsidiary, PNB, Park is engaged in a general commercial banking and trust and wealth management business, primarily in Ohio, Kentucky, North Carolina, South Carolina, and, as of February 1, 2026, Tennessee, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies. Management believes there are a significant number of consumers and businesses that seek long-term relationships with community-based financial institutions of quality and strength.  While not engaging in activities such as foreign lending, nationally syndicated loans or investment banking, Park attempts to meet the needs of our customers for commercial, real estate and consumer loans, and investment, fiduciary and deposit services. Park’s subsidiaries compete for deposits and loans with other banks, savings associations, credit unions and other types of financial institutions.  At December 31, 2025, Park operated 87 financial service offices (including those of PNB and Scope Leasing, Inc. ("Scope Aircraft Finance")) and a network of 107 automated teller machines in 24 Ohio counties, five North Carolina counties, four South Carolina counties and one Kentucky county. SEPH operated one administrative office, located in Newark, Ohio. -38- SOURCE OF FUNDS Deposits: Park’s major source of funds is deposits from individuals, businesses and local government entities.  These deposits consist of non-interest bearing and interest bearing deposits. Average total deposits were $8,462 million in 2025, compared to $8,260 million in 2024 and compared to $8,360 million in 2023. The average interest rate paid on interest bearing deposits was 1.71% in 2025, 1.97% in 2024 and 1.52% in 2023. The average cost of interest bearing deposits for each quarter of 2025 was 1.61% for the fourth quarter, 1.74% for the third quarter, 1.73% for the second quarter and 1.76% for the first quarter.  The table below provides a summary of deposit balances as of December 31, 2025 and 2024, along with the change over the past year. Table 3 - Year-End Deposits December 31 (In thousands) 2025 2024 Change Non-interest bearing checking $ 2,656,093  $ 2,612,708  $ 43,385  Interest bearing transaction accounts 2,032,497  1,939,755  92,742  Savings 2,765,171  2,679,280  85,891  Time deposits 772,952  735,297  37,655  Brokered deposits and Bid Ohio CDs 17,000  176,486  (159,486) Total $ 8,243,713  $ 8,143,526  $ 100,187  Off balance sheet deposits 105,265  115,186  (9,921) Total deposits including off balance sheet deposits $ 8,348,978  $ 8,258,712  $ 90,266  During the years ended December 31, 2025 and 2024, Park decided to continue participation in a program to transfer deposits off-balance sheet in order to manage growth of the balance sheet. Park is able to increase or decrease the amount of deposit balances transferred off balance sheet based on its balance sheet management strategies and liquidity needs. At December 31, 2025 and December 31, 2024, Park had $105.3 million and $115.2 million, respectively, in off balance sheet deposits. The table below breaks out the change in deposit balances, by deposit type, for Park. Table 4 - Retail and Commercial Deposits December 31 (In thousands) 2025 2024 2023 2022 2021 Retail deposits $ 4,081,871  $ 4,035,351  $ 4,080,372  $ 4,388,394  $ 4,416,228  Commercial deposits 4,144,842  3,931,689  3,797,209  3,846,321  3,488,300  Brokered and bid CD deposits 17,000  176,486  164,985  —  —  Total deposits $ 8,243,713  $ 8,143,526  $ 8,042,566  $ 8,234,715  $ 7,904,528  Off balance sheet deposits 105,265  115,186  1,185  195,937  983,053  Total deposits including off balance sheet deposits $ 8,348,978  $ 8,258,712  $ 8,043,751  $ 8,430,652  $ 8,887,581  $ change from prior period end $ 90,266  $ 214,961  $ (386,901) $ (456,929) % change from prior period end 1.1  % 2.7  % (4.6) % (5.1) % Noninterest bearing deposits to total deposits 32.2  % 32.1  % 32.7  % 37.3  % 38.8  % During the year ended December 31, 2025, total deposits including off balance sheet deposits increased by $90.3 million, or 1.1%. This increase consisted of a $213.2 million increase in total commercial deposits and a $46.5 million increase in retail deposits, partially offset by a $159.5 million decrease in brokered and bid CD deposits and a $9.9 million decrease in off balance sheet deposits. The majority of off balance sheet deposits are commercial and thus impact the change in commercial deposits as the deposits are moved on or off the balance sheet. Included in the total commercial deposits and off balance sheet deposits shown in the previous table are public fund deposits. These balances fluctuate based on seasonality and the cycle of collection and remittance of tax funds. Public funds include Bid -39- Ohio CDs. The following table details the change in public fund deposits held on and off Park's balance sheet. Table 5 - Public Fund Deposits (Dollars in thousands) 2025 2024 2023 2022 2021 Public funds included in commercial deposits $ 1,320,070  $ 1,278,325  $ 1,198,418  $ 1,335,400  $ 1,548,217  Bid Ohio CDs 17,000  76,497  15,000  —  —  Total public fund deposits $ 1,337,070  $ 1,354,822  $ 1,213,418  $ 1,335,400  $ 1,548,217  $ change from prior period end $ (17,752) $ 141,404  $ (121,982) $ (212,817) % change from prior period end (1.3) % 11.7  % (9.1) % (13.7) % Cost of public fund deposits 1.94  % 2.36  % 2.24  % 0.60  % 0.11  % Cost of total interest bearing deposits 1.71  % 1.97  % 1.52  % 0.39  % 0.12  % As of December 31, 2025, Park had approximately $1.5 billion of uninsured deposits, which was 18.5% of total deposits. Uninsured deposits of $1.5 billion included $382.6 million of deposits that were over $250,000, but were fully collateralized by Park's investment securities portfolio. As of December 31, 2024, Park had approximately $1.4 billion of uninsured deposits, which was 17.6% of total deposits. Uninsured deposits of $1.4 billion included $395.4 million of deposits that were over $250,000, but were fully collateralized by Park's investment securities portfolio. The uninsured amounts, those in excess of the $250,000 FDIC insurance limit, are estimates based on the methodologies used for the Corporation's regulatory reporting requirements. The following table provides a summary of the portion of the Corporation's time deposits, by account, that are in excess of the FDIC insurance limit of $250,000, by remaining time until maturity, as of December 31, 2025: Table 6 - Maturities of Time Deposits in Excess of FDIC Insurance Limit December 31 (In thousands) 2025 3 months or less $ 94,754  Over 3 months through 6 months 50,287  Over 6 months through 12 months 63,058  Over 12 months 39,070  Total $ 247,169  Short-Term Borrowings: Short-term borrowings consist of securities sold under agreements to repurchase, Federal Home Loan Bank advances, Federal Funds purchased and other borrowings.  These funds are used to manage the Corporation’s liquidity needs and interest rate sensitivity risk.  The average rate paid on short-term borrowings generally moves closely with changes in market interest rates for short-term investments.  The average rate paid on short-term borrowings was 1.45% in 2025, compared to 2.60% in 2024 and 2.58% in 2023. The year-end balance for short-term borrowings was $82 million at December 31, 2025, compared to $90 million at December 31, 2024 and $328 million at December 31, 2023.  Subordinated Notes: Park assumed, with the 2007 acquisition of Vision Bank's parent holding company, $15.5 million of floating rate junior subordinated notes.  The $15.5 million of junior subordinated notes were purchased by Vision Bancshares Trust I ("Trust I") following the issuance of Trust I's $15.0 million of floating rate preferred securities. The interest rate on these junior subordinated notes adjusted every quarter at 174 basis points above the three-month CME Term SOFR.  The maturity date for the junior subordinated notes was December 30, 2035, and, since December 30, 2010, Park has had the right to prepay the junior subordinated notes, without penalty. On September 30, 2025, Park redeemed in full, $15.0 million in Trust Preferred Securities at a redemption price in cash equal to 100% of the principal amount of the Trust Preferred Securities, plus accrued and unpaid interest.  On August 20, 2020, Park completed the issuance and sale of $175 million aggregate principal amount of its 4.50% Fixed-to-Floating Rate Subordinated Notes due 2030 (the "Subordinated Notes"). Beginning on September 1, 2025, Park had the right to redeem the Subordinated Notes, in whole or in part. On September 1, 2025, Park redeemed in full, $175 million outstanding of the Subordinated Notes at a redemption price in cash equal to 100% of the principal amount of the Notes, plus accrued and unpaid interest. The repayments were made using available cash on hand and did not involve any refinancing or issuance of new debt. -40- As of December 31, 2025, Park has no subordinated debt outstanding. At December 31, 2024, the Subordinated Notes, net of unamortized issuance costs, totaled $189.7 million and qualified as Tier 2 capital for Park under the Federal Reserve Board capital adequacy rules. In 2025, the average balance of subordinated notes was $128 million, compared to $189 million in 2024 and $189 million in 2023. The average interest rate paid on subordinated notes was 4.91% in 2025, compared to 4.98% in 2024 and 4.97% in 2023.  See "Note 17 - Subordinated Notes" of the Notes to Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K for additional information about the Subordinated Notes. Total Debt: Average total debt (subordinated notes and short-term) was $208 million in 2025, compared to $310 million in 2024 and $372 million in 2023. Average total debt decreased by $101.6 million, or 32.8% in 2025 compared to 2024 and decreased $62.0 million, or 16.7% in 2024 compared to 2023. Average long term subordinated notes were 61% of average total debt in 2025, compared to 61% of average total debt in 2024 and 51% of average total debt in 2023. Shareholders' Equity: The ratio of total shareholders' equity to total assets was 13.80% at December 31, 2025, compared to 12.69% at December 31, 2024 and 11.64% at December 31, 2023. The non-GAAP ratio of tangible shareholders’ equity [shareholders' equity ($1,352.8 million) less goodwill ($159.6 million) and other intangible assets ($2.4 million)] to tangible assets [total assets ($9,805.0 million) less goodwill ($159.6 million) and other intangible assets ($2.4 million)] was 12.35% at December 31, 2025, compared to 11.21% at December 31, 2024 and 10.14% at December 31, 2023. In accordance with U.S. GAAP, Park reflects any unrealized holding gain or loss on AFS debt securities and any change in the funded status of Park's pension plan, in each case, net of income taxes, as accumulated other comprehensive (loss) income which is part of Park’s shareholders’ equity.   The unrealized net holding loss, net of income taxes, on AFS debt securities was $32.3 million at year-end 2025, compared to an unrealized net holding loss, net of income taxes, of $62.9 million at year-end 2024 and an unrealized net holding loss, net of income taxes, $67.9 million at year-end 2023. The unrealized net holding loss on AFS debt securities at December 31, 2025 was impacted by the realization of $1.8 million in losses, net of income taxes, during the year ended December 31, 2025 as the result of the sale of $79.1 million in AFS debt securities. The unrealized net holding loss on AFS debt securities at December 31, 2024 was impacted by the realization of $415,000 in losses, net of income taxes, during the year ended December 31, 2024 as the result of the sale of $44.6 million in AFS debt securities. The unrealized net holding loss on AFS debt securities at December 31, 2023 was impacted by the realization of $6.2 million in losses, net of income taxes, during the year ended December 31, 2023 as the result of the sale of $291.0 million in AFS debt securities. In accordance with U.S. GAAP, Park adjusts accumulated other comprehensive (loss) income to recognize the net actuarial gain or loss and prior service cost reflected in the funding status of Park’s pension plan.  See "Note 20 - Benefit Plans" of the Notes to Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K for additional information on the accounting for Park’s pension plan. At year-end 2025, the balance in accumulated other comprehensive loss pertaining to the pension plan was unrealized income of $19.6 million, compared to unrealized income of $16.8 million at December 31, 2024 and compared to unrealized income of $1.7 million at December 31, 2023. The net other comprehensive income in 2025 was largely due to a $3.6 million ($2.8 million, net of taxes) net actuarial gain. The gain was due to asset returns greater than expected and an increase in the discount rate, partially offset by assumption updates for a change in the mortality table for lump sum distributions, reflecting updates for the 2025 assumption study, demographic losses and an increase in the interest credit rate. The net other comprehensive income in 2024 was largely due to a $25.2 million ($19.9 million, net of taxes) net unrealized actuarial gain, partially offset by a $6.1 million ($4.9 million, net of taxes) realized pension settlement gain. The unrealized gain was due to asset returns greater than expected, an increase in the discount rate and assumption updates for a change in the mortality table for lump sum distributions, reflecting updates for the 2024 assumption study, partially offset by demographic losses and an increase in the interest credit rate. The realized pension settlement gain was recognized as a result of a combination of lump sum payouts as well as the purchase of a nonparticipating annuity contract which will provide ongoing benefits to vested participants. -41- The net other comprehensive income in 2023 was largely due to a $10.5 million ($8.3 million, net of taxes) net actuarial gain. The gain was due to asset returns greater than expected, partially offset by the impact of demographic losses driven by salary increases greater than assumed and a decrease in the discount rate. INVESTMENT OF FUNDS Loans:  Average loans were $7,924 million in 2025, compared to $7,627 million in 2024 and $7,222 million in 2023. The average yield on loans was 6.33% in 2025, compared to 6.14% in 2024 and 5.55% in 2023. Approximately 46% of Park’s loan balances mature or reprice within one year (see Table 32).  The average yield on loans for each quarter of 2025 was 6.34% for the fourth quarter, 6.34% for the third quarter, 6.37% for the second quarter and 6.26% for the first quarter.   Loan interest income for 2025, 2024, and 2023 included $2.0 million, $54,000 and $631,000, respectively, related to payments received on certain SEPH nonaccrual loan relationships, some of which are participated with PNB. In addition, loan interest income included $668,000, $1.2 million and $633,000, respectively, of the accretion of loan purchase accounting adjustments related to the acquisitions of NewDominion and Carolina Alliance. Loan interest income for 2023 included interest and fee income related to PPP loans of $69,000. Excluding the impact of the purchase accounting accretion, SEPH income, and PPP income, the average yield on loans was 6.29%, 6.13% and 5.53%, for the years ended December 31, 2025, 2024, and 2023. Excluding the impact of the purchase accounting accretion, SEPH income, and PPP income, the average yield on loans was 6.33% for the fourth quarter of 2025, 6.33% for the third quarter of 2025, 6.32% for the second quarter of 2025, and 6.21% for the first quarter of 2025. At December 31, 2025, loan balances were $8,051 million compared to $7,817 million at year-end 2024, an increase of $234 million, or 3.0%. At December 31, 2024, loan balances were $7,817 million, compared to $7,476 million at year-end 2023, an increase of $341 million, or 4.6%. The table below reports year-end loan balances by type of loan for the past three years. Table 7  -  Loans by Type December 31 (In thousands) 2025 2024 2023 Commercial, financial and agricultural $ 1,212,150  $ 1,269,585  $ 1,295,640  Construction real estate 399,425  412,577  305,099  Residential real estate 2,375,382  2,200,433  2,029,524  Commercial real estate 2,208,660  1,994,332  1,875,993  Consumer 1,823,247  1,910,372  1,945,936  Leases 32,378  29,829  24,029  Total loans $ 8,051,242  $ 7,817,128  $ 7,476,221  On a combined basis, year-end commercial, financial and agricultural loans, construction real estate loans and commercial real estate loans increased by $143.7 million, or 3.9%, in 2025. The increase in 2025 was due to an increase in commercial real estate loans of $214.3 million, which were partially offset by an decrease in commercial, financial and agricultural loans of $57.4 million and a decrease in construction real estate loans of $13.2 million. On a combined basis, year-end commercial, financial and agricultural loans, construction real estate loans and commercial real estate loans increased by $199.8 million, or 5.7%, in 2024. The increase in 2024 was due to an increase in commercial real estate loans of $118.3 million and an increase in construction real estate loans of $107.5 million, which were partially offset by a decrease in commercial, financial and agricultural loans of $26.1 million. Consumer loans decreased by $87.1 million, or 4.6% in 2025 and decreased by $35.6 million, or 1.8% in 2024. The change in consumer loans in 2025 and 2024 was primarily due to decreases in automobile lending in Ohio due to strategic balance sheet management. Residential real estate loans increased by $174.9 million, or 8.0% in 2025 and increased by $170.9 million, or 8.4% in 2024. The increase in 2025 was due to an increase in commercial loans secured by residential real estate of $108.3 million, an increase in home equity loans secured by residential real estate of $37.6 million and an increase in mortgage loans secured by residential real estate of $29.1 million. The increase in 2024 was due to an increase in mortgage loans secured by residential -42- real estate of $106.7 million, an increase in commercial loans secured by residential real estate of $35.0 million and an increase in home equity loans secured by residential real estate of $29.1 million. Leases increased by $2.5 million to $32.4 million in 2025 and increased by $5.8 million to $29.8 million in 2024. The table below summarizes the distribution of maturities for loan segments as of December 31, 2025: Table 8 - Loan Maturity Distribution One Year or Less (1) Over One Through Five Years Over Five Through Fifteen Years Over  Fifteen  Years Total December 31, 2025 (In thousands) Commercial, financial and agricultural $ 423,768  $ 545,561  $ 139,721  $ 103,100  $ 1,212,150  Construction real estate 82,098  159,094  68,251  89,982  399,425  Residential real estate 79,600  268,202  790,049  1,237,531  2,375,382  Commercial real estate 121,274  566,093  839,522  681,771  2,208,660  Consumer 22,757  866,155  899,227  35,108  1,823,247  Leases 2,577  29,767  34  —  32,378     Total loans and leases $ 732,074  $ 2,434,872  $ 2,736,804  $ 2,147,492  $ 8,051,242  (1) Nonaccrual loans of $66.5 million are included within the one year or less classification above. The table below summarizes the composition of the loan portfolio by fixed and adjustable rate as of December 31, 2025 that are contractually due after December 31, 2026: Table 9 - Amounts Due After One Year (In thousands) Fixed Adjustable Total Commercial, financial and agricultural $ 459,604  $ 328,778  $ 788,382  Construction real estate 49,703  267,624  317,327  Residential real estate 700,075  1,595,707  2,295,782  Commercial real estate 452,201  1,635,185  2,087,386  Consumer 1,792,324  8,166  1,800,490  Leases 29,801  —  29,801  Total loans and leases $ 3,483,708  $ 3,835,460  $ 7,319,168  Investment Securities: Park’s investment securities portfolio is structured to minimize credit risk, provide liquidity and contribute to earnings. As conditions change over time, Park’s overall interest rate risk, liquidity needs and potential return on the investment portfolio will change.  Management regularly evaluates the securities in the investment portfolio as circumstances evolve.  Circumstances that could result in the sale of a security include: to better manage interest rate risk; to meet liquidity needs; or to improve the overall net interest margin. AFS debt securities are carried on the books at their estimated fair value with the unrealized holding gain or loss, net of income taxes, accounted for as accumulated other comprehensive (loss) income. The debt securities that are classified as AFS are free to be sold in future periods in carrying out Park’s investment strategies. Beginning in 2021, Park began investing in the AAA and AA rated tranches of Collateralized Loan Obligations ("CLOs"). CLOs had a fair value as of December 31, 2025 of $56.1 million. Management closely monitors the credit status of these securities. At December 31, 2025, the market value of overcollateralization was greater than 125% for each CLO. The market value of overcollateralization is a measure of the underlying collateral value of the instrument relative to our specific tranche position, and our AAA or AA rated senior tranches are supported by subordinate tranches. Average taxable debt investment securities were $785 million in 2025, compared to $1,082 million in 2024 and $1,387 million in 2023. The average yield on taxable debt investment securities was 3.02% in 2025 compared to 3.86% in 2024 and 3.81% in 2023. Average tax-exempt debt investment securities were $218 million in 2025 compared to $219 million in 2024 and $400 million in 2023. The average tax-equivalent yield on tax-exempt debt investment securities was 3.36% in 2025, compared to 3.19% in 2024 and 3.47% in 2023. -43- Total debt securities (at amortized cost) were $730 million at December 31, 2025, compared to $1,076 million at December 31, 2024 and $1,419 million at December 31, 2023. Management purchased debt securities totaling $88 million in 2025, $3 million in 2024 and $4 million in 2023. Proceeds from repayments, redemptions and maturities of debt securities were $355 million in 2025, $300 million in 2024 and $145 million in 2023.   During 2025, Park sold certain AFS debt securities with a book value of $79.1 million at a gross loss of $2.3 million. During 2024, Park sold certain AFS debt securities with a book value of $42.3 million at a gross loss of $553,000 and sold certain AFS debt securities with a book value of $2.3 million for a gross gain of $27,000. During 2023, Park sold certain AFS debt securities with a book value of $291.0 million at a gross loss of $7.9 million. For the years ended December 31, 2025, 2024, and 2023, the average tax-equivalent yield on the total investment portfolio was 3.10%, 3.74% and 3.73%, respectively.  The weighted average remaining maturity of the total investment portfolio was 4.9 years at December 31, 2025, 4.7 years at December 31, 2024 and 4.8 years at December 31, 2023. Obligations of U.S. Government sponsored entities and U.S. Government sponsored entities' asset-backed securities were approximately 49.9% of the total investment portfolio at year-end 2025, 47.1% of the total investment portfolio at year-end 2024 and 44.4% of the total investment portfolio at year-end 2023. Other investment securities (as shown on Park's Consolidated Balance Sheets) consist of restricted stock investments in the FHLB and the FRB and equity securities which include equity investments in other financial institutions and equity investments in limited partnerships which provide mezzanine funding.  Total other investment securities were $113 million at December 31, 2025, $104 million at December 31, 2024 and $96 million at December 31, 2023. There were $494,000 in FHLB stock purchases in 2025, $9.2 million in FHLB stock purchases in 2024 and $18.2 million in FHLB stock purchases in 2023. Proceeds from the redemption/repurchase of FHLB stock were $1.1 million in 2025, compared to $18.4 million in 2024, and $11.7 million in 2023. No shares of FRB stock were purchased or sold in any of the years ended December 31, 2025, 2024, or 2023. Management purchased equity securities totaling $5.8 million in 2025, $10.2 million in 2024 and $2.2 million in 2023. During the years ended December 31, 2025, 2024, and 2023, Park entered into partnership agreements with commitments totaling $157,000, $2.5 million and $2.7 million, respectively. Funding of limited partnerships totaled $8.1 million, $7.5 million and $5.6 million during the years ended December 31, 2025, 2024, and 2023, respectively. "Gain on equity securities, net" on Park's Consolidated Statements of Income were $4.7 million, $3.1 million and $971,000 for the years ended December 31, 2025, 2024 and 2023, respectively. These gains on equity securities were made up of gains (losses) on equity investments carried at fair value or modified cost as well as gains (losses) on equity investments carried at modified cost and gains (losses) on partnership investments carried at NAV. For the years ended December 31, 2025, 2024 and 2023, $3.5 million, $2.6 million and $600,000, respectively, of gains on equity investments carried at fair value or modified cost were recorded within "Gain on equity securities, net" on Park's Consolidated Statements of Income. For the years ended December 31, 2025, 2024 and 2023, $1.2 million, $468,000 and $371,000, respectively, of gains on equity investments carried at NAV were recorded within "Gain on equity securities, net" on Park's Consolidated Statements of Income. The average maturity of the investment portfolio would lengthen if long-term interest rates were to increase as principal repayments from mortgage-backed securities and CMOs would decrease and callable securities would price to their maturity dates.  At year-end 2025, management estimated that the average maturity of the investment portfolio would lengthen to 5.4 years with a 100 basis point increase in long-term interest rates and would lengthen to 5.7 years with a 200 basis point increase in long-term interest rates. Likewise, the average maturity of the investment portfolio would shorten if long-term interest rates were to decrease as the principal repayments from mortgage-backed securities and CMOs would increase and callable securities would price to their call dates. At year-end 2025, management estimated that the average maturity of the investment portfolio would decrease to 4.3 years with a 100 basis point decrease in long-term interest rates and to 4.2 years with a 200 basis point decrease in long-term interest rates. -44- The table below sets forth the carrying value of investment securities, as well as the percentage held within each category at year-end 2025, 2024 and 2023: Table 10  -  Investment Securities December 31 (In thousands) 2025 2024 2023 Obligations of U.S. Government sponsored entities $ —  $ 249  $ —  Obligations of states and political subdivisions 211,823  186,883  241,184  U.S. Government sponsored entities' asset-backed securities 399,964  518,576  635,475  Collateralized loan obligations 56,143  271,833  438,286  Corporate debt securities 20,738  19,083  17,897  FHLB stock 8,013  8,607  17,754  FRB stock 14,653  14,653  14,653  Equities 90,808  80,977  63,895       Total $ 802,142  $ 1,100,861  $ 1,429,144  Investments by category as a percentage of total investment securities Obligations of U.S. Government sponsored entities —  % —  % —  % Obligations of states and political subdivisions 26.4  % 17.0  % 16.9  % U.S. Government sponsored entities' asset-backed securities 49.9  % 47.1  % 44.4  % Collateralized loan obligations 7.0  % 24.7  % 30.7  % Corporate debt securities 2.6  % 1.7  % 1.3  % FHLB stock 1.0  % 0.8  % 1.2  % FRB stock 1.8  % 1.3  % 1.0  % Equities 11.3  % 7.4  % 4.5  %      Total 100.0  % 100.0  % 100.0  % The carrying value of investments in debt securities at December 31, 2025, is shown in the following table by contractual maturity, except for asset-backed securities and collateralized loan obligations, which are shown as a single total, due to the unpredictability of the timing in principal repayments. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Table 11 - Investment Maturity Distribution One Year or under Over One Through Five Years Over Five Through Ten Years Over  Ten  Years Total December 31, 2025 (In thousands) Corporate debt securities $ —  $ 1,956  $ 18,782  $ —  $ 20,738  Obligations of states and political subdivisions —  —  98,360  113,463  211,823  Total $ —  $ 1,956  $ 117,142  $ 113,463  $ 232,561  U.S. Government sponsored entities' asset-backed securities $ 399,964  Collateralized loan obligations 56,143  ANALYSIS OF EARNINGS Net Interest Income: Park’s principal source of earnings is net interest income, the difference between total interest income and total interest expense.  Net interest income results from average balances outstanding for interest earning assets and interest bearing liabilities in conjunction with the average rates earned and paid on them.  (See the table below for three years of history on the average balances of the balance sheet categories as well as the average rates earned on interest earning assets and the average rates paid on interest bearing liabilities.) -45- Table 12 - Distribution of Assets, Liabilities and Shareholders' Equity December 31, 2025 2024 2023 (In thousands) Daily Average Interest Average Rate Daily Average Interest Average Rate Daily Average Interest Average Rate ASSETS Loans (1)(2) $ 7,924,342  $ 501,400  6.33  % $ 7,627,419  $ 468,566  6.14  % $ 7,222,479  $ 400,606  5.55  % Taxable investment securities 784,610  23,734  3.02  % 1,081,906  41,718  3.86  % 1,386,670  52,786  3.81  % Tax-exempt investment securities (3) 217,999  7,315  3.36  % 219,233  6,992  3.19  % 400,028  13,881  3.47  % Money market instruments 343,612  14,745  4.29  % 157,292  8,121  5.16  % 162,544  8,123  5.00  % Total interest earning assets 9,270,563  547,194  5.90  % 9,085,850  525,397  5.78  % 9,171,721  475,396  5.18  % Non-interest earning assets: Allowance for credit losses (90,254) (85,930) (87,002) Cash and due from banks 119,607  129,070  147,414  Premises and equipment, net 65,272  72,689  79,443  Other assets 742,628  699,585  645,978        TOTAL $ 10,107,816  $ 9,901,264  $ 9,957,554  LIABILITIES AND SHAREHOLDERS' EQUITY Interest bearing liabilities:    Transaction accounts $ 2,151,861  $ 29,917  1.39  % $ 2,156,400  $ 36,351  1.69  % $ 2,209,846  $ 32,633  1.48  %    Savings deposits 2,868,307  46,504  1.62  % 2,688,773  46,438  1.73  % 2,727,299  39,143  1.44  %    Time deposits 767,751  21,405  2.79  % 690,938  21,531  3.12  % 572,918  10,699  1.87  % Brokered/bid CD deposits 45,441  1,954  4.30  % 160,074  8,063  5.04  % 35,952  1,978  5.50  % Total interest bearing deposits 5,833,360  99,780  1.71  % 5,696,185  112,383  1.97  % 5,546,015  84,453  1.52  % Repurchase agreements 80,207  1,156  1.44  % 95,680  1,746  1.82  % 146,388  2,583  1.76  % Other short-term borrowings 164  8  4.62  % 24,917  1,389  5.58  % 36,659  2,138  5.83  %    Subordinated notes 128,049  6,285  4.91  % 189,399  9,428  4.98  % 188,908  9,383  4.97  % Total interest bearing liabilities 6,041,780  107,229  1.77  % 6,006,181  124,946  2.08  % 5,917,970  98,557  1.67  % Non-interest bearing liabilities:    Demand deposits 2,629,132  2,564,009  2,814,259     Other 131,679  133,954  128,182  Total non-interest bearing liabilities 2,760,811  2,697,963  2,942,441     Shareholders' equity 1,305,225  1,197,120  1,097,143        TOTAL $ 10,107,816  $ 9,901,264  $ 9,957,554  Tax equivalent net interest income $ 439,965  $ 400,451  $ 376,839  Net interest spread 4.13  % 3.70  % 3.51  % Net yield on interest earning assets (net interest margin) 4.75  % 4.41  % 4.11  % (1)Loan income includes net loan-related origination fee (expense) income, purchase accounting accretion and origination expense in the aggregate amount of $(11.1) million in 2025, $(11.6) million in 2024 and $(12.1) million in 2023.  Loan income also includes the effects of taxable equivalent adjustments -46- using a 21% federal corporate income tax rate in 2025, 2024 and 2023. The taxable equivalent adjustments were $1.1 million in 2025, $964,000 in 2024 and $811,000 in 2023. (2)For the purpose of the computation for loans, nonaccrual loans are included in the daily average loans outstanding. (3)Interest income on tax-exempt investment securities includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate in 2025, 2024 and 2023. The taxable equivalent adjustments were $1.5 million in 2025, $1.5 million in 2024 and $2.9 million in 2023. Average interest earning assets for 2025 increased $185 million, or 2.0% to $9,271 million, compared to $9,086 million for 2024. The increase was largely due to a $297 million increase in average loans and a $186 million increase in average money markets, partially offset by a $299 million decrease in average investment securities. Average interest earning assets for 2024 decreased $86 million, or 0.9% to $9,086 million, compared to $9,172 million for 2023. The average yield on interest earning assets increased by 12 basis points to 5.90% for 2025, compared to 5.78% for 2024 and 5.18% for 2023. Loan interest income for 2025, 2024, and 2023 included $2.0 million, $54,000 and $631,000, respectively, related to payments received on certain SEPH nonaccrual loan relationships, some of which are participated with PNB. In addition, loan interest income included $668,000, $1.2 million and $633,000, respectively, of the accretion of loan purchase accounting adjustments related to the acquisitions of NewDominion and Carolina Alliance. Loan interest income for 2023 included interest and fee income related to PPP loans of $69,000. Excluding the impact of the purchase accounting accretion, SEPH income, and PPP income, the average yield on loans was 6.29%, 6.13% and 5.53%, for the years ended December 31, 2025, 2024, and 2023. Excluding the impact of the purchase accounting accretion, SEPH income, and PPP income, the average yield on earning assets was 5.87%, 5.77% and 5.17%, for the years ended December 31, 2025, 2024, and 2023, respectively, and the net interest margin was 4.72%, 4.39% and 4.09%, for the years ended December 31, 2025, 2024, and 2023, respectively. Average interest bearing liabilities for 2025 increased by $36 million, or 0.6%, to $6,042 million, compared to $6,006 million for 2024. Average interest bearing liabilities for 2024 increased by $88 million, or 1.5%, to $6,006 million, compared to $5,918 million for 2023. The average cost of interest bearing liabilities decreased by 31 basis points to 1.77% for 2025, compared to 2.08% for 2024 and 1.67% for 2023. The table below shows for the years ended December 31, 2025, 2024, and 2023, the average balance and tax equivalent yield by type of loan. Table 13 - Average Loans and Tax Equivalent Yield Year Ended December 31, 2025 2024 2023 (Dollars in thousands) Average balance Tax equivalent  yield Average balance Tax equivalent  yield Average balance Tax equivalent  yield Home equity $ 220,197  7.32  % $ 186,466  8.34  % $ 169,570  8.17  % Installment loans 1,886,584  6.94  % 1,946,060  6.46  % 1,942,428  5.49  % Real estate loans 1,481,522  5.50  % 1,389,914  5.08  % 1,253,919  4.38  % Commercial loans (1) 4,332,962  6.29  % 4,099,623  6.25  % 3,852,174  5.83  % Other 3,077  10.06  % 5,356  6.26  % 4,388  8.07  % Total loans and leases before allowance for credit losses $ 7,924,342  6.33  % $ 7,627,419  6.14  % $ 7,222,479  5.55  % (1) Commercial loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate in 2025, 2024 and 2023. The taxable equivalent adjustments were $1.1 million in 2025, $964,000 in 2024 and $811,000 in 2023. Loan interest income for 2025, 2024 and 2023 included $2.0 million, $54,000 and $631,000, respectively, related to payments received on certain SEPH nonaccrual loan relationships, some of which are participated with PNB, as well as $668,000, $1.2 million and $633,000 of purchase accounting accretion for 2025, 2024 and 2023, respectively. Interest income for 2023 included interest and fee income related to PPP loans of $69,000. Below is a summary of the impact of these items on the tax equivalent yield of loans. •The amount of interest related to purchase accounting accretion included in home equity loan interest income for 2025, 2024 and 2023 was $73,000, $184,000 and $79,000, respectively. Excluding the impact of these items, the average tax equivalent yield on home equity loans was 7.29%, 8.23% and 8.11%, respectively. •The amount of interest related to purchase accounting accretion included in real estate loan interest income for 2024 and 2023 was $80,000 and $4,000, respectively. Excluding the impact of these items, the average tax equivalent yield on real estate loans was 5.07% and 4.38%, respectively. There was no purchase accounting accretion included in real estate loan interest income for 2025. -47- •The amount of interest related to PPP income, SEPH nonaccrual loan relationships and purchase accounting accretion included in commercial loan interest income for 2025, 2024 and 2023 was $2.0 million, $935,000 and $1.2 million, respectively. Excluding the impact of these items, the average tax equivalent yield on commercial loans was 6.23%, 6.23% and 5.80%, for 2025, 2024 and 2023, respectively. •Excluding the impact of interest related to PPP income, SEPH nonaccrual loan relationships and purchase accounting accretion, the average tax equivalent yield on total loans and leases was 6.29%, 6.13% and 5.53%, for 2025, 2024 and 2023, respectively. The table below shows for the years ended December 31, 2025, 2024, and 2023, the average balance and cost of funds by type of deposit. Table 14 - Average Deposits and Cost of Funds Year Ended December 31, 2025 2024 2023 (Dollars in thousands) Average balance Cost of funds Average balance Cost of funds Average balance Cost of funds Transaction accounts $ 2,151,861  1.39  % $ 2,156,400  1.69  % $ 2,209,846  1.48  % Savings deposits and clubs 2,868,307  1.62  % 2,688,773  1.73  % 2,727,299  1.44  % Time deposits 767,751  2.79  % 690,938  3.12  % 572,918  1.87  % Brokered/bid CD deposits 45,441  4.30  % 160,074  5.04  % 35,952  5.50  % Total interest bearing deposits $ 5,833,360  1.71  % $ 5,696,185  1.97  % $ 5,546,015  1.52  % The following table displays (for each quarter of 2025) the average balance of interest earning assets, the net interest income and the tax equivalent net interest income and net interest margin. Table 15  - Quarterly Net Interest Margin (In thousands) Average Interest Earning Assets Net Interest Income Tax Equivalent Net Interest Income Tax Equivalent Net Interest Margin First Quarter $ 9,210,385  $ 104,377  $ 104,984  4.62  % Second Quarter 9,252,016  108,991  109,666  4.75  % Third Quarter 9,388,308  111,017  111,702  4.72  % Fourth Quarter 9,230,035  112,926  113,613  4.88  % 2025 $ 9,270,563  $ 437,311  $ 439,965  4.75  % -48- In the following table, the change in tax equivalent interest due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each. Table 16 - Volume/Rate Variance Analysis Change from 2024 to 2025 Change from 2023 to 2024 (In thousands) Volume Rate Total Volume Rate Total Increase (decrease) in: Interest income:          Total loans $ 18,240  $ 14,594  $ 32,834  $ 22,461  $ 45,499  $ 67,960  Taxable investments (11,464) (6,520) (17,984) (11,601) 533  (11,068) Tax-exempt investments (39) 362  323  (6,274) (615) (6,889) Money market instruments 9,620  (2,996) 6,624  (263) 261  (2)           Total interest income $ 16,357  $ 5,440  $ 21,797  $ 4,323  $ 45,678  $ 50,001  Interest expense: Transaction accounts $ (77) $ (6,357) $ (6,434) $ (789) $ 4,507  $ 3,718  Savings accounts 3,101  (3,035) 66  (553) 7,848  7,295  Time deposits and brokered/bid CD deposits (1,315) (4,920) (6,235) 5,041  11,876  16,917  Short-term borrowings (1,045) (926) (1,971) (1,610) 24  (1,586) Subordinated notes (3,054) (89) (3,143) 25  20  45           Total interest expense (2,390) (15,327) (17,717) 2,114  24,275  26,389           Net variance $ 18,747  $ 20,767  $ 39,514  $ 2,209  $ 21,403  $ 23,612  Other Income:  Other income was $119.9 million for 2025, compared to $122.6 million for 2024 and $92.6 million for 2023. The following table displays total other income for Park in 2025, 2024 and 2023. Table 17 - Other Income Year Ended December 31, (In thousands) 2025 2024 2023 Income from fiduciary activities $ 45,770  $ 42,489  $ 35,474  Service charges on deposit accounts 10,051  9,001  8,445  Other service income 14,482  11,743  10,300  Debit card fee income 25,793  25,873  26,522  Bank owned life insurance income 6,610  7,770  5,338  ATM fees 1,406  1,840  2,178  Pension settlement gain —  6,148  —  Loss on sale of debt securities, net (2,250) (526) (7,875) Gain on equity securities, net 4,664  3,080  971  Other components of net periodic benefit income 9,376  9,263  7,572  Miscellaneous 3,979  5,907  3,709      Total other income $ 119,881  $ 122,588  $ 92,634  Income from fiduciary activities increased by $3.3 million, or 7.7%, to $45.8 million in 2025, compared to $42.5 million in 2024. The $42.5 million in 2024 was an increase of $7.0 million, or 19.8%, compared to $35.5 million in 2023. The majority of fiduciary fees are calculated on a lag, based on the market value of the assets under management. The average market value of the wealth management assets managed by PNB was $9.07 billion in 2025, compared to $8.58 billion in 2024 and $7.69 billion in 2023. The increase in fiduciary fee income in 2025 was largely due to an increase in the market value of assets under management. The increase in fiduciary fee income in 2024 was largely due to an increase in the market value of assets under management as well as updates to the fee structure. -49- Service charges on deposit accounts increased $1.1 million, or 11.7%, to $10.1 million in 2025, compared to $9.0 million in 2024. The $9.0 million in 2024 was an increase of $556,000, or 6.6%, compared to $8.4 million in 2023. The increases in 2025 and 2024 were related to increases in service charges on demand deposit accounts, partially offset by decreases in non-sufficient funds (NSF) fee income. Other service income increased $2.7 million, or 23.3%, to $14.5 million in 2025, compared to $11.7 million in 2024. The $11.7 million in 2024 was an increase of $1.4 million, or 14.0%, compared to $10.3 million in 2023. The increase in 2025 compared to 2024 was primarily due to an increase in other service income related to mortgage loan originations and commercial related other service income, including a $957,000 increase in fee income related to mortgage loan originations to be sold in the secondary market, a $578,000 increase in mortgage servicing rights income and a $458,000 increase in commercial related other service income. The increase in 2024 compared to 2023 was primarily due to an increase in other service income related to mortgage loan originations, including a $950,000 increase in fee income related to mortgage loan originations to be sold in the secondary market and a $400,000 increase in mortgage servicing rights income. Park has experienced increases in mortgage loan origination volume resulting in increases in other service income. A summary of mortgage loan originations for the years ended December 31, 2025, 2024 and 2023 as follows. Table 18 - Mortgage Loan Origination Volume Year Ended December 31, (In thousands) 2025 2024 2023 Sold $ 170,383 $ 107,665 $ 59,386 Portfolio 203,705 233,237 249,151 Construction 70,977 81,887 92,612 Service released 15,950 8,241 5,825 Total mortgage loan originations $ 461,015 $ 431,030 $ 406,974 Refinances as a % of Total Mortgage Loan Originations 15.9  % 15.3  % 17.4  % Debit card fee income, which is generated from debit card transactions, decreased $80,000, or 0.3%, to $25.8 million in 2025, compared to $25.9 million in 2024. The $25.9 million in 2024 was a decrease of $649,000, or 2.4%, compared to $26.5 million in 2023. The decreases in 2025 and 2024 were attributable to a decrease in the average blended interchange rate per transaction, which is influenced by various factors, including the average spend per transaction. This decrease was partially offset by continued increases in both the volume of debit card transactions and increases in total sales dollars of debit card transactions. Debit card transaction volume increased 0.99% in 2025 from 2024 and increased 1.3% in 2024 from 2023. Total sales dollars of debit card transactions increased 3.2% in 2025 from 2024 and increased 1.4% in 2024 from 2023. Park continues to focus on deposit offerings that provide incentives for our customers to use their debit card. Bank owned life insurance income decreased $1.2 million, or 14.9%, to $6.6 million in 2025 compared to $7.8 million in 2024. The $7.8 million in 2024 was an increase of $2.4 million, or 45.6%, compared to $5.3 million in 2023. The decrease in 2025 and the increase in 2024 was related to death benefit income of $463,000 recognized in 2025, compared to $2.0 million recognized in 2024 and $325,000 recognized in 2023. During 2024, Park recognized a $6.1 million pension settlement gain due to a combination of lump sum payouts as well as the purchase of a nonparticipating annuity contract which will provide ongoing benefits to vested participants. There was no pension settlement gain recognized during 2025 or 2023. During 2025, Park sold certain AFS debt securities with a book value of $79.1 million at a gross loss of $2.3 million. During 2024, Park sold certain AFS debt securities with a book value of $42.3 million at a gross loss of $553,000 and sold certain AFS debt securities with a book value of $2.3 million for a gross gain of $27,000. During 2023, Park sold certain AFS debt securities with a book value of $291.0 million at a gross loss of $7.9 million. During the years ended December 31, 2025, 2024 and 2023, $3.5 million, $2.6 million and $600,000, respectively, of gains on equity investments carried at fair value or modified cost were recorded within "Gain on equity securities, net". For the years ended December 31, 2025, 2024 and 2023, $1.2 million, $468,000 and $371,000, respectively, of gains on equity investments carried at NAV were recorded within "Gain on equity securities, net". -50- Other components of net periodic pension benefit income increased $113,000, or 1.2%, to $9.4 million in 2025, compared to $9.3 million in 2024. The $9.3 million in 2024 was an increase of $1.7 million, or 22.3%, compared to $7.6 million in 2023. The increase in 2025 was largely due to a decrease in interest cost, partially offset by a decrease in the expected return on plan assets. The increase in 2024 was largely due to an increase in the expected return on plan assets. Miscellaneous income decreased by $1.9 million, or 32.6%, to $4.0 million in 2025, compared to $5.9 million in 2024. The $5.9 million in 2024 was an increase of $2.2 million, or 59.3%, compared to $3.7 million in 2023. The decrease in 2025 was primarily due to a decrease in net gains on the sale and disposal of assets, largely due to the impact of strategic initiatives, and an increase in the loss on sale of repossessed assets. The increase in 2024 was primarily due to an increase in the net gain on the sale of assets, an increase in filing fee income, an increase in net gains on the sale of repossessed assets and a decrease in OREO devaluations, partially offset by a decline in miscellaneous income that was received in 2023 as the result of an investment fund liquidation. Other Expense: Other expense was $324.4 million in 2025, compared to $321.3 million in 2024 and $309.2 million in 2023. Other expense increased by $3.0 million, or 0.9% in 2025 compared to 2024 and increased by $12.1 million, or 3.9% in 2024 compared to 2023. The following table displays total other expense for Park for 2025, 2024 and 2023. Table 19 - Other Expense Year Ended December 31, (In thousands) 2025 2024 2023 Salaries $ 152,735  $ 147,311  $ 139,237  Employee benefits 40,362  41,724  42,264  Occupancy expense 13,379  12,816  13,114  Furniture and equipment expense 8,761  9,983  12,233  Data processing fees 45,269  40,564  37,637  Professional fees and services 31,452  31,146  29,173  Marketing 6,074  6,318  5,471  Insurance 6,355  6,735  7,640  Communication 4,519  4,097  4,210  State tax expense 4,899  4,500  4,657  Amortization of intangible assets 1,042  1,215  1,323  Foundation contributions 1,000  2,000  1,000  Miscellaneous 8,534  12,930  11,280      Total other expense $ 324,381  $ 321,339  $ 309,239  Full-time equivalent employees 1,694  1,725  1,782  Salaries expense increased by $5.4 million, or 3.7% to $152.7 million in 2025, compared to $147.3 million in 2024. The $147.3 million in 2024 was an increase of $8.1 million, or 5.8%, compared to $139.2 million in 2023. The increase in 2025 was due to an increase of $3.2 million in salaries expense, a $1.5 million increase in officer incentive compensation expense and a $1.1 million increase in share-based compensation expenses related to PBRSU awards granted under the 2017 Employee LTIP, partially offset by a $336,000 decrease in additional compensation expense. The increase in 2024 was due to an increase in salaries expense of $4.9 million, a $2.6 million increase in officer incentive compensation expense, and a $1.2 million increase in additional compensation expense, partially offset by a $340,000 decrease in share-based compensation expenses related to PBRSU and TBRSU awards granted under the 2017 Employee LTIP and a $288,000 decrease in the vacation expense accrual. Park had 1,694 full-time equivalent employees at year-end 2025, compared to 1,725 full-time equivalent employees at year-end 2024 and compared to 1,782 full-time equivalent employees at year-end 2023. -51- Employee benefits expense decreased by $1.4 million, or 3.3%, to $40.4 million for 2025, compared to $41.7 million for 2024. The $41.7 million for 2024 was a decrease of $540,000, or 1.3%, compared to $42.3 million in 2023. The decrease in 2025 was due to a $1.4 million decrease in group insurance costs, a $408,000 decrease in supplemental retirement plan expense and a $390,000 decrease in pension plan expense, partially offset by a $254,000 increase in payroll tax expense and a $291,000 increase in KSOP match expense. The decrease in 2024 was due to a $1.9 million decrease in group insurance costs, partially offset by a $680,000 increase in pension plan expense, a $310,000 increase in the KSOP match and a $175,000 increase in payroll tax expense. Occupancy expense increased by $563,000, or 4.4%, to $13.4 million in 2025, compared to $12.8 million in 2024. The $12.8 million in 2024 was a decrease of $298,000, or 2.3%, compared to $13.1 million in 2023. The $563,000 increase in 2025 was primarily due to increased expense for the rental of leased space and increased depreciation and amortization expense, partially offset by decreased maintenance and repairs expense. The $298,000 decrease in 2024 was primarily due to decreased expense for the rental of leased space and decreased utilities expense, partially offset by increases in maintenance and repairs expense, which included expenses related to a building demolition. Furniture and equipment expense decreased $1.2 million, or 12.2%, to $8.8 million in 2025, compared to $10.0 million in 2024. The $10.0 million in 2024 was a decrease of $2.3 million, or 18.4%, compared to $12.2 million in 2023. The decrease in 2025 was primarily related to decreased depreciation expense. The decrease in 2024 was primarily related to decreased depreciation expense and decreased expenses related to repairs on maintenance and equipment. Data processing fees increased by $4.7 million, or 11.6%, to $45.3 million, compared to $40.6 million in 2024. The $40.6 million in 2024 was an increase of $2.9 million, or 7.8%, compared to $37.6 million in 2023. The increase in 2025 was primarily related to an increase in software expenses of $5.7 million, partially offset by a decrease in debit card processing costs of $1.0 million. The increase in 2024 primarily related to an increase in software expenses of $5.9 million, partially offset by a decrease in debit card processing costs of $3.0 million. Professional fees and services increased $306,000, or 1.0%, to $31.5 million in 2025, compared to $31.1 million in 2024. The $31.1 million in 2024 was an increase of $2.0 million, or 6.8%, compared to $29.2 million in 2023. This subcategory of total other expense includes legal fees, management consulting fees, directors' fees, audit fees, regulatory examination fees and memberships in industry associations. The $306,000 increase in 2025 was related to increases in management consulting fees, temporary wages and legal expense, partially offset by decreases in directors fees, other fees and recruiting fees. The $2.0 million increase in 2024 related to increases in management consulting fees, credit services expense, IntraFi insured deposit fees, temporary wages and recruiting fees, partially offset by decreases in legal fees and other fees. Marketing expense decreased by $244,000, or $3.9%, to $6.1 million in 2025, compared to $6.3 million in 2024. The $6.3 million in 2024 was an increase of $847,000, or 15.5%, compared to $5.5 million in 2023. The $244,000 decrease in 2025 was primarily due to decreases in organization dues, special events and customer entertainment expense. The $847,000 increase in 2024 was primarily due to an increase in advertising expense. Insurance expense decreased by $380,000, or 5.6%, to $6.4 million, compared to $6.7 million in 2024. The $6.7 million in 2024 was a decrease of $905,000, or 11.8%, compared to $7.6 million in 2023. The decreases in 2025 and 2024 were related to decreases in FDIC assessment expense. The subcategory "Miscellaneous" other expense includes expenses for supplies, travel, and other miscellaneous expense. The subcategory Miscellaneous other expense decreased by $4.4 million, or 34.0%, to $8.5 million in 2025 compared to $12.9 million in 2024. The $12.9 million in 2024 was an increase of $1.7 million, or 14.6%, compared to $11.3 million in 2023. The decrease in 2025 was related to decreases in fraud and other non loan related losses, provision for unfunded credit losses and other miscellaneous expenses. The increase in 2024 was related to increases in fraud and other non loan related losses as well as an increase in the provision for unfunded credit losses. -52- Efficiency Ratio: The following table details the calculation of the efficiency ratio for the years ended December 31, 2025, 2024, and 2023. Table 20 - Efficiency ratio(1) Year Ended December 31, (In thousands) 2025 2024 2023 Net interest income $ 437,311  $ 398,019  $ 373,113  Add: Tax equivalent adjustment (2) 2,654  2,432  3,726  Net interest income - Fully tax equivalent $ 439,965  $ 400,451  $ 376,839  Total other income $ 119,881  $ 122,588  $ 92,634  Total other expense $ 324,381  $ 321,339  $ 309,239  Efficiency ratio 57.94  % 61.44  % 65.87  % (1) Calculated by dividing "Total other expense" by the sum of fully-tax equivalent net interest income and "Total other income." (2) The tax equivalent adjustment to net interest income was calculated assuming a 21% corporate federal income tax rate for 2025, 2024 and 2023. Items Impacting Comparability (non-U.S. GAAP): From time to time, revenue, expenses, and/or taxes are impacted by items judged by management of Park to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by management of Park at that time to be infrequent or short-term in nature. Most often, these items impacting comparability of period results relate to merger and acquisition activities and revenue and expenses related to former Vision Bank loan relationships. In other cases, they may result from management's decisions associated with significant corporate actions outside of the ordinary course of business. The following table details those items which management believes impacts the comparability of current and prior period amounts. Table 21 - Items impacting comparability Year Ended December 31, (In thousands, except share and per share data) 2025 2024 2023 Affected Line Item Net interest income $ 437,311  $ 398,019  $ 373,113  less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions 668  1,154  633  Interest and fees on loans less interest income on former Vision Bank relationships 2,030  54  631  Interest and fees on loans Net interest income - adjusted $ 434,613  $ 396,811  $ 371,849  Provision for credit losses $ 11,488  $ 14,543  $ 2,904  less recoveries on former Vision Bank relationships (1,818) (1,304) (788) Provision for credit losses Provision for credit losses - adjusted $ 13,306  $ 15,847  $ 3,692  Total other income $ 119,881  $ 122,588  $ 92,634  less pension settlement gain —  6,148  —  Pension settlement gain less impact of strategic initiatives (156) 775  (1,038) Miscellaneous income less Vision related OREO valuation adjustments, net (229) 115  (370) Miscellaneous income less other service income related to former Vision Bank relationships 331  312  175  Other service income less loss on the sale of debt securities, net (2,250) (526) (7,875) Loss on the sale of debt securities, net Total other income - adjusted $ 122,185  $ 115,764  $ 101,742  -53- Table 21 - Items impacting comparability (continued) Year Ended December 31, (In thousands, except share and per share data) 2025 2024 2023 Affected Line Item Total other expense $ 324,381  $ 321,339  $ 309,239  less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions 1,042  1,215  1,323  Amortization of intangible assets less building demolition costs —  458  —  Occupancy expense less restructuring costs 989  —  —  Salaries expense less merger related expenses related to First Citizens acquisition 1,509  —  —  Professional fees and services less merger related expenses related to First Citizens acquisition 47  —  —  Miscellaneous expense less Foundation contributions 1,000  2,000  1,000  Foundation contributions less direct expenses related to collection of payments on former Vision Bank loan relationships 690  215  100  Professional fees and services Total other expense - adjusted $ 319,104  $ 317,451  $ 306,816  Tax effect of adjustments to net income identified above (7) $ 644  $ (1,144) $ 1,991  Net income - reported $ 180,073  $ 151,420  $ 126,734  Net income - adjusted (6) $ 182,494  $ 147,116  $ 134,222  Diluted earnings per common share (1) $ 11.11  $ 9.32  $ 7.80  Diluted earnings per common share, adjusted (1)(6) $ 11.26  $ 9.06  $ 8.26  Return on average assets (1)(2) 1.78  % 1.53  % 1.27  %  Return on average assets, adjusted (1)(2)(6) 1.81  % 1.49  % 1.35  % Return on average tangible assets (1)(2)(4) 1.81  % 1.56  % 1.29  % Return on average tangible assets, adjusted (1)(2)(4)(6) 1.83  % 1.51  % 1.37  % Return on average shareholders' equity (1)(2) 13.80  % 12.65  % 11.55  % Return on average shareholders' equity, adjusted (1)(2)(6) 13.98  % 12.29  % 12.23  % Return on average tangible equity (1)(2)(3) 15.76  % 14.65  % 13.60  % Return on average tangible equity, adjusted (1)(2)(3)(6) 15.97  % 14.24  % 14.40  % Efficiency ratio (5) 57.94  % 61.44  % 65.87  % Efficiency ratio, adjusted (5)(6) 57.04  % 61.64  % 64.28  % Net interest margin (5) 4.75  % 4.41  % 4.11  % Net interest margin, adjusted (5)(6) 4.72  % 4.39  % 4.09  % -54- Table 21 - Items impacting comparability (continued) Financial Reconciliations (1) Reported measure uses net income. (2) Averages are for the years ended December 31, 2025, December 31, 2024 and December 31, 2023, as appropriate. (3) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY: Year Ended December 31, 2025 2024 2023 AVERAGE SHAREHOLDERS' EQUITY $ 1,305,225  $ 1,197,120  $ 1,097,143  Less: Average goodwill and other intangible assets 162,536  163,669  164,960  AVERAGE TANGIBLE EQUITY $ 1,142,689  $ 1,033,451  $ 932,183  (4) Net income for each period divided by average tangible assets during the period. Average tangible assets equal average assets less average goodwill and other intangible assets, in each case during the applicable period. RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS Year Ended December 31, 2025 2024 2023 AVERAGE ASSETS $ 10,107,816  $ 9,901,264  $ 9,957,554  Less: Average goodwill and other intangible assets 162,536  163,669  164,960  AVERAGE TANGIBLE ASSETS $ 9,945,280  $ 9,737,595  $ 9,792,594  (5) Efficiency ratio is calculated by dividing total other expense by the sum of FTE net interest income and other income. The FTE net interest income reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing FTE net interest income by average interest earning assets, in each case during the applicable period. RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME Year Ended December 31, 2025 2024 2023 Interest income $ 544,540  $ 522,965  $ 471,670  FTE adjustment 2,654  2,432  3,726  FTE interest income $ 547,194  $ 525,397  $ 475,396  Interest expense 107,229  124,946  98,557  FTE net interest income $ 439,965  $ 400,451  $ 376,839  (6) Adjustments to net income for each period presented are detailed in the non-GAAP reconciliations of net interest income, provision for credit losses, other income, other expense and tax effect of adjustments to net income. (7) The tax effect of adjustments to net income was calculated assuming a 21% federal corporate income tax rate. OTHER RECONCILIATIONS The following reconciliations are not utilized in Table 21 - Items impacting comparability, but provide reconciliations for values referenced elsewhere within Management's Discussion and Analysis of Financial Condition and Results of Operations. (8) Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at the end of the period. RECONCILIATION OF TOTAL SHAREHOLDERS' EQUITY TO TANGIBLE EQUITY: Year Ended December 31, 2025 2024 2023 TOTAL SHAREHOLDERS' EQUITY $ 1,352,793  $ 1,243,848  $ 1,145,293  Less: Goodwill and other intangible assets 161,990  163,032  164,247  TANGIBLE EQUITY $ 1,190,803  $ 1,080,816  $ 981,046  -55- Table 21 - Items impacting comparability (continued) (9) Tangible assets equal total assets less goodwill and other intangible assets, in each case at the end of the period. RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS: Year Ended December 31, 2025 2024 2023 TOTAL ASSETS $ 9,805,013  $ 9,805,350  $ 9,836,453  Less: Goodwill and other intangible assets 161,990  163,032  164,247  TANGIBLE ASSETS $ 9,643,023  $ 9,642,318  $ 9,672,206  (10) Pre-tax, pre-provision ("PTPP") net income is calculated as net income, plus income taxes, plus the provision for credit losses, in each case during the applicable period. PTPP net income is a common industry metric utilized in capital analysis and review. PTPP is used to assess the operating performance of Park while excluding the impact of the provision for credit losses. RECONCILIATION OF PRE-TAX, PRE-PROVISION NET INCOME Year Ended December 31, 2025 2024 2023 Net income $ 180,073  $ 151,420  $ 126,734  Plus: Income taxes 41,250  33,305  26,870  Plus: Provision for credit losses 11,488  14,543  2,904  Pre-tax, pre-provision net income $ 232,811  $ 199,268  $ 156,508  Income Taxes: Income tax expense was $41.3 million in 2025 and consisted of federal income tax expense of $39.1 million and state income tax expense of $2.2 million. Income tax expense was $33.3 million in 2024 and consisted of federal income tax expense of $31.8 million and state income tax expense of $1.5 million. Income tax expense was $26.9 million in 2023 and consisted of federal income tax expense of $25.7 million and state income tax expense of $1.2 million. The effective income tax rate was 18.6% in 2025, 18.0% in 2024 and 17.5% in 2023.  The difference between the statutory federal corporate income tax rate of 21% and Park’s effective tax rate reflected permanent tax differences, primarily consisting of tax-exempt interest income from municipal investments and loans, qualified affordable housing and historical tax credits, bank owned life insurance income, and dividends paid on common shares held within Park’s salary deferral plan, offset by the impact of state income taxes. Park's permanent federal tax differences were approximately $7.4 million in 2025, compared to $7.0 million in 2024 and $6.6 million in 2023. Park expects permanent federal tax differences for 2026 will be approximately $6.3 million. CREDIT METRICS AND PROVISION FOR CREDIT LOSSES The provision for credit losses is the amount added to/subtracted from the allowance for credit losses to ensure the allowance is sufficient to absorb estimated credit losses over the life of a loan. The amount of the provision for credit losses is determined by management based on relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. The adoption of ASU 2022-02 on January 1, 2023 resulted in a $383,000 increase to the allowance for credit losses. A cumulative effect adjustment resulting in a $303,000 decrease to retained earnings and an $80,000 increase to deferred tax assets was also recorded. Additionally, as a result of the adoption of this ASU and elimination of the concept of TDRs, total nonperforming loans decreased by $20.1 million effective January 1, 2023 and individually evaluated loans decreased by $11.5 million effective January 1, 2023. -56- The table below provides additional information on the provision for credits losses and the ACL for 2025, 2024 and 2023. Table 22 - ACL Activity (In thousands) 2025 2024 2023 ACL, beginning balance $ 87,966  $ 83,745  $ 85,379  Cumulative change in accounting principle; adoption of ASU 2022-02 —  —  383  Charge-offs 16,624  18,334  10,863  Recoveries (10,143) (8,012) (5,942) Net charge-offs 6,481  10,322  4,921  Provision for credit losses: 11,488  14,543  2,904       ACL, ending balance $ 92,973  $ 87,966  $ 83,745  Average loans $ 7,924,342  $ 7,627,419  $ 7,222,479  Net charge-offs as a percentage of average loans 0.08  % 0.14  % 0.07  % For the year ended December 31, 2025, gross income of $5.9 million would have been recognized on loans that were nonaccrual as of December 31, 2025 had these loans been current in accordance with their original terms. Interest income on nonaccrual loans may be recorded on a cash basis and be included in income only when Park expects to receive the entire recorded investment of the loan. Of the $5.9 million that would have been recognized, approximately $4.1 million was included in interest income for the year ended December 31, 2025 as a result of payments made. At year-end 2025, the allowance for credit losses was $93.0 million, or 1.15%, of total loans outstanding, compared to $88.0 million, or 1.13%, of total loans outstanding at year-end 2024, and $83.7 million, or 1.12% of total loans outstanding at year-end 2023. The following table provides additional information related to the allowance for credit losses for Park, including information related to individual reserves and collective reserves, at December 31, 2025, December 31, 2024 and December 31, 2023. Park has determined that any commercial loans which have been placed on nonaccrual status are to be individually evaluated. Additionally, accruing collateral dependent commercial loans to borrowers experiencing financial difficulty are also to be individually evaluated and a review of classified credits is performed to identify any additional loans which do not share similar risk characteristics and are to be individually evaluated. Table 23- Allowance for Credit Losses Summary (Dollars in thousands) 12/31/2025 12/31/2024 12/31/2023 Total allowance for credit losses $ 92,973  $ 87,966  $ 83,745  Allowance on accruing PCD loans —  —  —  Reserves on individually evaluated loans - accruing —  —  —  Reserves on individually evaluated loans - nonaccrual 739  1,299  4,983  General reserves on collectively evaluated loans $ 92,234  $ 86,667  $ 78,762  Total loans $ 8,051,242  $ 7,817,128  $ 7,476,221  Accruing PCD loans 1,990  2,174  2,835  Individually evaluated loans - accrual 18,365  15,290  —  Individually evaluated loans - nonaccrual 46,924  53,149  45,215  Collectively evaluated loans $ 7,983,963  $ 7,746,515  $ 7,428,171  Allowance for credit losses as a % of period end loans 1.15  % 1.13  % 1.12  % General reserve as a % of collectively evaluated loans 1.16  % 1.12  % 1.06  % -57- The allowance for credit losses of $93.0 million at December 31, 2025 represented a $5.0 million, or 5.7%, increase compared to $88.0 million at December 31, 2024. The increase was due to a $5.6 million increase in general reserves, partially offset by a $560,000 decrease in individual reserves on nonaccrual loans. The $5.6 million increase in general reserves takes into account changing economic forecasts and prepayment and curtailment speeds, while balancing the risks associated with other economic factors. Additionally, the $5.6 million increase in general reserves included a $2.3 million additional qualitative reserve related to several special purpose mortgage loan programs to assist borrowers in attaining home ownership. As of December 31, 2025, the loans in these special purpose mortgage loan programs totaled $234.2 million. Delinquency rates within these special purpose mortgage loan programs have become higher than those of Park's traditional 30-year mortgage portfolio loans. These special purpose mortgage loan programs require very little, if any, down payment, and the loan-to-value on these loans are generally at 90% or above. For these reasons, management expects that the PD and LGD related to loans within these programs will be higher than that of Park's standard 30-year portfolio loans and established a qualitative factor related to the increased risk of loss on mortgage loans within these programs. Management will continue to evaluate this portfolio as additional information becomes available. The allowance for credit losses of $88.0 million at December 31, 2024 represented a $4.2 million, or 5.0%, increase compared to $83.7 million at December 31, 2023. The increase was due to a $7.9 million increase in general reserves and a $3.7 million decrease in individual reserves on nonaccrual loans. The $7.9 million increase in general reserves took into account changing economic forecasts and prepayment and curtailment speeds, while balancing the risks associated with other economic factors. Additionally, the $7.9 million increase in general reserves included a $757,000 additional reserve related to Hurricane Helene which impacted borrowers in Park's Carolina region. The decrease in individual reserves at December 31, 2024 compared to December 31, 2023 was primarily related to $4.2 million in charge-offs related to two relationships that previously carried individual reserves, partially offset by new or increasing reserves on other credits. -58- The composition of the ACL at December 31, 2025 and December 31, 2024 was as follows: Table 24 - ACL Composition December 31, 2025 (In thousands) Commercial, financial and agricultural Commercial real estate Construction real estate Residential real estate Consumer Leases Total ACL: Ending allowance balance attributed to loans: Individually evaluated for impairment - nonaccrual $ 729 $ — $ — $ — $ — $ 10 $ 739 Individually evaluated for impairment - accrual — — — — — — — Collectively evaluated for impairment 13,413 18,177 7,709 27,344 25,393 198 92,234 Accruing acquired with deteriorated credit quality — — — — — — — Total ending allowance balance $ 14,142 $ 18,177 $ 7,709 $ 27,344 $ 25,393 $ 208 $ 92,973 Loan balance: Individually evaluated for impairment - nonaccrual $ 15,735 $ 28,879 $ 577 $ 1,565 $ — $ 168 $ 46,924 Individually evaluated for impairment - accrual 18,365 — — — — — 18,365 Loans collectively evaluated for impairment 1,178,050 2,178,456 398,306 2,373,694 1,823,247 32,210 7,983,963 Accruing loans acquired with deteriorated credit quality — 1,325 542 123 — — 1,990 Total ending loan balance $ 1,212,150 $ 2,208,660 $ 399,425 $ 2,375,382 $ 1,823,247 $ 32,378 $ 8,051,242 ACL as a percentage of loan balance: Individually evaluated for impairment - nonaccrual 4.63  % —  % —  % —  % —  % 5.95  % 1.57  % Individually evaluated for impairment - accrual —  % —  % —  % —  % —  % —  % —  % Loans collectively evaluated for impairment 1.14  % 0.83  % 1.94  % 1.15  % 1.39  % 0.61  % 1.16  % Accruing loans acquired with deteriorated credit quality —  % —  % —  % —  % —  % —  % —  % Total 1.17  % 0.82  % 1.93  % 1.15  % 1.39  % 0.64  % 1.15  % -59- Table 24 - ACL Composition (continued) December 31, 2024 (In thousands) Commercial, financial and agricultural Commercial real estate Construction real estate Residential real estate Consumer Leases Total ACL: Ending allowance balance attributed to loans: Individually evaluated for impairment - nonaccrual $ 1,259 $ — $ — $ 40 $ — $ — $ 1,299 Individually evaluated for impairment - accrual — — — — — — — Collectively evaluated for impairment 11,424 19,571 7,125 22,315 26,081 151 86,667 Accruing acquired with deteriorated credit quality — — — — — — — Total ending allowance balance $ 12,683 $ 19,571 $ 7,125 $ 22,355 $ 26,081 $ 151 $ 87,966 Loan balance: Individually evaluated for impairment - nonaccrual $ 24,194 $ 23,230 $ 8 $ 5,700 $ — $ 17 $ 53,149 Individually evaluated for impairment - accrual 15,290 — — — — — 15,290 Loans collectively evaluated for impairment 1,230,101 1,969,785 411,988 2,194,457 1,910,372 29,812 7,746,515 Accruing loans acquired with deteriorated credit quality — 1,317 581 276 — — 2,174 Total ending loan balance $ 1,269,585 $ 1,994,332 $ 412,577 $ 2,200,433 $ 1,910,372 $ 29,829 $ 7,817,128 ACL as a percentage of loan balance: Individually evaluated for impairment - nonaccrual 5.20  % —  % —  % 0.70  % —  % —  % 2.44  % Individually evaluated for impairment - accrual —  % —  % —  % —  % —  % —  % —  % Loans collectively evaluated for impairment 0.93  % 0.99  % 1.73  % 1.02  % 1.37  % 0.51  % 1.12  % Accruing loans acquired with deteriorated credit quality —  % —  % —  % —  % —  % —  % —  % Total 1.00  % 0.98  % 1.73  % 1.02  % 1.37  % 0.51  % 1.13  % Management believes that the allowance for credit losses at year-end 2025 is adequate to absorb estimated life of loan credit losses in the loan portfolio. See "Note 1 - Summary of Significant Accounting Policies" of the Notes to Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K, and the discussion under the heading “CRITICAL ACCOUNTING POLICIES” earlier in this Management's Discussion and Analysis of Financial Condition and Results of Operations, for additional information on management’s evaluation of the adequacy of the allowance for credit losses. -60- ACL Detail by Loan Type: The following tables breakdown the allowance for credit losses and components by loan type. The table below provides a summary of Park's loan loss experience over the past three years: Table 25  -  Summary of Loan Credit Loss Experience (In thousands) 2025 2024 2023 Average loans $ 7,924,342  $ 7,627,419  $ 7,222,479  Allowance for credit losses:    Beginning balance 87,966  83,745  85,379  Adoption of ASU 2022-02 —  —  383    Charge-offs: Commercial, financial and agricultural 3,022  5,443  1,226  Construction real estate —  —  546  Residential real estate 253  31  44  Commercial real estate 103  99  754  Consumer 13,246  12,753  8,293  Leases —  8  —         Total charge-offs $ 16,624  $ 18,334  $ 10,863     Recoveries:        Commercial financial, and agricultural $ 884  $ 438  $ 292  Construction real estate 1,116  1,067  548  Residential real estate 143  366  482  Commercial real estate 1,802  825  240  Consumer 6,197  5,315  4,379  Leases 1  1  1         Total recoveries $ 10,143  $ 8,012  $ 5,942             Net charge-offs $ 6,481  $ 10,322  $ 4,921  Provision included in net income 11,488  14,543  2,904     Ending balance $ 92,973  $ 87,966  $ 83,745  Ratio of net charge-offs to average loans 0.08  % 0.14  % 0.07  % Ratio of allowance for credit losses to end of year loans 1.15  % 1.13  % 1.12  % -61- The follow table presents net-charge offs (recoveries), average loans outstanding, and net charge-offs (recoveries) as a percentage of average loans, by type of loan over the past three years: Table 26- Net Charge-Offs (Recoveries) to Average Loans Year Ended December 31, 2025 2024 2023 (Dollars in thousands) Net Charge-offs (Recoveries) Average Loans Net Charge-offs (Recoveries) as a % of Average Loans Net Charge-offs (Recoveries) Average Loans Net Charge-offs (Recoveries) as a % of Average Loans Net Charge-offs (Recoveries) Average Loans Net Charge-offs (Recoveries) as a % of Average Loans Commercial, financial, and agricultural $ 2,138  $ 1,210,494  0.18  % $ 5,005  $ 1,277,654  0.39  % $ 934  $ 1,262,791  0.07  % Construction real estate (1,116) 432,874  (0.26) % (1,067) 348,195  (0.31) % (2) 292,920  —  % Residential real estate 110  2,293,520  —  % (335) 2,101,285  (0.02) % (438) 1,894,891  (0.02) % Commercial real estate (1,699) 2,086,590  (0.08) % (726) 1,936,959  (0.04) % 514  1,818,935  0.03  % Consumer 7,049  1,870,786  0.38  % 7,438  1,935,322  0.38  % 3,914  1,933,669  0.20  % Leases (1) 30,078  —  % 7  28,004  0.02  % (1) 19,273  (0.01) % Total $ 6,481  $ 7,924,342  0.08  % $ 10,322  $ 7,627,419  0.14  % $ 4,921  $ 7,222,479  0.07  % The following table summarizes Park's allocation of the allowance for credit losses for the past three years: Table 27- Allocation of Allowance for Credit Losses December 31, 2025 2024 2023 (In thousands) Allowance Percent of Loans Per Category Allowance Percent of Loans Per Category Allowance Percent of Loans Per Category Commercial, financial, and agricultural $ 14,142  15.06  % $ 12,683  16.24  % $ 15,496  17.33  % Construction real estate 7,709  4.96  % 7,125  5.28  % 5,227  4.08  % Residential real estate 27,344  29.50  % 22,355  28.15  % 18,818  27.15  % Commercial real estate 18,177  27.43  % 19,571  25.51  % 16,374  25.09  % Consumer 25,393  22.65  % 26,081  24.44  % 27,713  26.03  % Leases 208  0.40  % 151  0.38  % 117  0.32  % Total $ 92,973  100.00  % $ 87,966  100.00  % $ 83,745  100.00  % Nonperforming Assets: Non-performing assets include: (1) loans whose interest is accounted for on a nonaccrual basis; (2) loans which are contractually past due 90 days or more as to principal or interest payments but whose interest continues to accrue; and (3) OREO which results from taking possession of property that served as collateral for a defaulted loan. Generally, management obtains updated appraisal information for nonperforming loans and OREO annually. As new appraisal information is received, management performs an evaluation of the appraisal and applies a discount for anticipated disposition costs to determine the net realizable value of the collateral, which is compared to the outstanding principal balance to determine if additional write-downs are necessary. -62- The following is a summary of Park’s nonperforming assets at the end of the last three years: Table 28 - Nonperforming Assets December 31, (In thousands) 2025 2024 2023 Nonaccrual loans $ 66,515  $ 68,178  $ 60,259  Loans past due 90 days or more and accruing 2,738  1,754  859     Total nonperforming loans $ 69,253  $ 69,932  $ 61,118  OREO 729  938  983     Total nonperforming assets $ 69,982  $ 70,870  $ 62,101  Percentage of nonperforming loans to total loans 0.86  % 0.89  % 0.82  % Percentage of nonperforming assets to total loans 0.87  % 0.91  % 0.83  % Percentage of nonperforming assets to total assets 0.71  % 0.72  % 0.63  % Percentage of nonaccrual loans to total loans 0.83  % 0.87  % 0.81  % Allowance for credit losses to nonaccrual loans 139.78  % 129.02  % 138.98  % Park classifies loans as nonaccrual when 1) a loan is maintained on a cash basis because of deterioration in the financial condition of the borrower, 2) payment in full of principal or interest is not expected, or 3) principal or interest has been in default for a period of 90 days for commercial loans and 120 days for all other loans. As a result, loans may be classified as nonaccrual despite being current with their contractual terms. The following table details the delinquency status of nonaccrual loans at December 31, 2025, 2024, and 2023. Loans are classified as current if they are less than 30 days past due. Table 29 - Delinquency Status of Nonaccrual Loans December 31, 2025 December 31, 2024 December 31, 2023 (Dollars in thousands) Balance Percent of Total Loans Balance Percent of Total Loans Balance Percent of Total Loans Nonaccrual loans - current $ 50,489  0.63  % $ 44,135  0.56  % $ 38,956  0.52  % Nonaccrual loans - past due 16,026  0.20  % 24,043  0.31  % 21,303  0.29  % Total nonaccrual loans $ 66,515  0.83  % $ 68,178  0.87  % $ 60,259  0.81  % Credit Quality Indicators: When determining the quarterly credit loss provision, Park reviews the grades of commercial loans. These loans are graded from 1 to 8. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans that are pass-rated (graded an 1 through a 4) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher PD is applied to these loans. Commercial loans graded a 6 (substandard), also considered to be watch list credits, represent higher credit risk than those rated special mention and, as a result, a higher PD is applied to these loans. Commercial loans that are graded a 7 (doubtful) are shown as nonperforming and Park charges these loans down to their fair value by taking a partial charge-off or recording an individual reserve. Certain 6-rated loans and all 7-rated loans are placed on nonaccrual status and included within the individually evaluated category. Any commercial loan graded an 8 (loss) is completely charged off. -63- The following table highlights the credit trends within the commercial loan portfolio. Table 30- Commercial Credit Trends Commercial loans * (In thousands) December 31, 2025 December 31, 2024 December 31, 2023 Pass rated $ 4,381,440  $ 4,094,178  $ 3,905,673  Special Mention 51,411  81,090  57,236  Substandard 4,320  3,484  3,414  Individually evaluated for impairment - accrual 18,365  15,290  —  Individually evaluated for impairment - nonaccrual 46,924  53,149  45,215  Accruing PCD 1,914  2,095  2,760      Total $ 4,504,374  $ 4,249,286  $ 4,014,298  *Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) commercial related loans in the construction portfolio; (4) commercial related loans in the residential real estate portfolio; and (5) leases. Park’s watch list includes all criticized and classified commercial loans, defined by Park as loans rated special mention or worse. Park had $74.1 million of accruing commercial loans included on the watch list at December 31, 2025, compared to $99.9 million at December 31, 2024, and $60.7 million at December 31, 2023. The existing conditions of these loans do not warrant classification as nonaccrual. However, these loans have shown some weakness and management performs additional analysis regarding each borrower's ability to comply with payment terms. Park considers a loan delinquent when it reaches 30 days past due. Delinquent and accruing loans were $31.4 million, or 0.39% of total loans at December 31, 2025, compared to $28.4 million, or 0.36% of total loans at December 31, 2024, and $23.5 million, or 0.31% of total loans at December 31, 2023. Individually Evaluated Loans: Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. Park has determined that any commercial loans which have been placed on nonaccrual status are to be individually evaluated. Additionally, accruing collateral dependent commercial loans to borrowers experiencing financial difficulty are to be individually evaluated and a review of classified credits is performed to identify any additional loans which do not share similar risk characteristics and are to be individually evaluated. Individual analysis establishes an individual reserve for loans in scope.  Reserves on individually evaluated commercial loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as appropriate. The amount ultimately charged off for these loans may be different from the reserve as the ultimate liquidation of the collateral may be for an amount different from management’s estimate. Nonaccrual individually evaluated commercial loans were $46.9 million at December 31, 2025, a decrease of $6.2 million, compared to $53.1 million at December 31, 2024 and an increase of $1.7 million, compared to $45.2 million at December 31, 2023. Accruing individually evaluated commercial loans were $18.4 million at December 31, 2025, compared to $15.3 million at December 31, 2024, and compared to no accruing individually evaluated commercial loans at December 31, 2023. At December 31, 2025, Park had taken partial charge-offs of $4.7 million related to the $46.9 million of the nonaccrual individually evaluated commercial loans, compared to partial charge-offs of $5.0 million related to the $53.1 million of nonaccrual individually evaluated commercial loans at December 31, 2024 and compared to partial charge-offs of $2.3 million related to the $45.2 million of nonaccrual individually evaluated commercial loans at December 31, 2023. -64- The table below provides additional information related to Park's nonaccrual individually evaluated commercial loans at December 31, 2025, 2024, and 2023. Table 31 - Nonaccrual individually Evaluated Commercial Loans Years ended December 31, (In thousands) 2025 2024 2023 Unpaid principal balance $ 51,664  $ 58,158  $ 47,564  Prior charge-offs 4,740  5,009  2,349  Remaining principal balance 46,924  53,149  45,215  Reserves 739  1,299  4,983  Book value, after reserves $ 46,185  $ 51,850  $ 40,232  Loans Acquired with Deteriorated Credit Quality: PCD loans are individually evaluated on a quarterly basis to determine if a specific reserve is necessary. At December 31, 2025, December 31, 2024 and December 31, 2023, there was no allowance for credit losses on PCD loans. The carrying amount of accruing loans acquired with deteriorated credit quality at December 31, 2025, 2024, and 2023 was $2.0 million, $2.2 million, and $2.8 million, respectively. The carrying amount of nonaccrual loans acquired with deteriorated credit quality was $510,000, $551,000 and $534,000 at December 31, 2025, 2024, and 2023, respectively. Additional Considerations: As part of its quarterly allowance process, Park evaluates certain industries which are more likely to be under economic stress in the current environment. The office sector continues to face challenges from adjustments companies have made as a result of the pandemic. Nationally, office properties in downtown and urban business districts are seeing the most stress. As of December 31, 2025, Park had $323.2 million of loans which were fully or partially secured by non-owner-occupied office space, $320.8 million of which were accruing. This portfolio is not currently exhibiting signs of stress, but Park continues to monitor this portfolio for signs of deterioration. The non‑bank consumer finance sector has come under pressure as elevated interest rates and broader economic challenges, including inflation, have increased financial strain on consumer borrowers. As of December 31, 2025, Park’s outstanding loans to non‑bank consumer finance companies totaled $274.1 million, of which $25.4 million were categorized as accruing watch list credits and $2.1 million were nonaccrual loans. Watch list and nonaccrual loans within this portfolio are in differing stages of liquidation, and Park expects the associated loan balances to decline as these liquidation processes continue to be executed. Park maintains heightened oversight of this portfolio and continues to monitor it for any indications of deterioration that could adversely affect credit quality. Additionally, in calculating the allowance, management considered the geopolitical environment and uncertainty regarding the fiscal policy of the current political administration, including tariffs. While it is too early to assess the impact of increased tariffs on individual borrowers, management continues to weigh a baseline ("most likely" scenario) forecast with a "moderate recession" scenario in calculating the general reserve. The "moderate recession" scenario considers the impact of tariffs being higher for longer than considered in the "most likely" scenario. CAPITAL RESOURCES Liquidity and Interest Rate Sensitivity Management: Park’s objective in managing its liquidity is to maintain the ability to continuously meet the cash flow needs of customers, such as borrowings or deposit withdrawals, while at the same time seeking higher yields from longer-term lending and investing activities. Cash and cash equivalents increased by $72.9 million during 2025 to $233.5 million at year end. Cash provided by operating activities was $198.3 million in 2025, $178.8 million in 2024 and $151.1 million in 2023. Net income was the primary source of cash provided by operating activities during each year. Cash provided by investing activities was $86.2 million in 2025, cash used in investing activities was $19.1 million in 2024, and cash provided by investing activities was $63.5 million in 2023. Investment securities transactions and loan originations/repayments are the major uses or sources of cash in investing activities.  Proceeds from the sale, repayment or maturity of investment securities provide cash and purchases of investment securities use cash.  Net investment securities transactions provided cash of $339.1 million in 2025, provided cash of $338.5 million in 2024 and provided cash of $418.9 million in -65- 2023. Cash used by the net increase in the loan portfolio was $233.1 million in 2025, $341.5 million in 2024 and $330.4 million in 2023. Cash used in financing activities was $211.5 million in 2025, $217.4 million in 2024 and $186.1 million in 2023. A major source of cash provided by or used in financing activities is the net change in deposits.  Deposits increased and provided $100.2 million of cash in 2025 and $101.0 million of cash in 2024 and decreased and used $192.1 million of cash in 2023. These changes in deposits included a decrease in off-balance sheet deposits of $9.9 million in 2025, an increase in off-balance sheet deposits of $114.0 million in 2024 and a decrease in off-balance sheet deposits of $194.8 million in 2023. Other major sources of cash from financing activities are short-term borrowings. Net short-term borrowings decreased and used $8.7 million in cash in 2025 and $237.8 million in cash in 2024 and increased and provided $100.8 million in cash in 2023. Cash of $190.0 million was used in the repayment of subordinated notes in 2025. No cash was used in the repayment of subordinated notes in 2024 or 2023. Cash used in the repurchase of common shares was $20.1 million in 2025 and $23.0 million in 2023. No common shares were repurchased in 2024. Finally, cash declined by $89.9 million in 2025, $77.5 million in 2024 and $69.0 million in 2023, from the payment of cash dividends. Effective liquidity management ensures that the cash flow requirements of depositors and borrowers, as well as the operating cash needs of the Corporation, are met. Funds are available from a number of sources, including the capital markets, the investment securities portfolio, the core deposit base, FHLB borrowings and the capability to securitize or package loans for sale. In the opinion of Park's management, the present funding sources provide more than adequate liquidity for Park to meet our cash flow needs in the short- and long-term. The following table shows interest rate sensitivity data for five different time intervals as of December 31, 2025: Table 32  -  Interest Rate Sensitivity 0-3 3-12 1-3 3-5 Over 5 (In thousands) Months Months Years Years Years Total Interest earning assets:    Investment securities (1) $ 119,740  $ 68,983  $ 127,775  $ 93,646  $ 381,075  $ 791,219     Money market instruments 96,274  —  —  —  —  96,274     Loans (1) 1,961,840  1,739,052  2,666,401  1,276,449  407,500  8,051,242      Total interest earning assets 2,177,854  1,808,035  2,794,176  1,370,095  788,575  8,938,735  Interest bearing liabilities: Interest bearing transaction accounts (2) $ 1,230,680  $ —  $ 801,817  $ —  $ —  $ 2,032,497   Savings accounts (2) 1,503,926  —  1,260,029  —  —  2,763,955     Time deposits and brokered/bid CD deposits 375,929  307,046  57,683  48,056  1,238  789,952     Other —  1,216  —  —  —  1,216        Total deposits 3,110,535  308,262  2,119,529  48,056  1,238  5,587,620     Short-term borrowings 81,711  —  —  —  81,711  Total interest bearing liabilities 3,192,246  308,262  2,119,529  48,056  1,238  5,669,331  Interest rate sensitivity gap (1,014,392) 1,499,773  674,647  1,322,039  787,337  3,269,404  Cumulative rate sensitivity gap (1,014,392) 485,381  1,160,028  2,482,067  3,269,404  Cumulative gap as a    percentage of total    interest earning assets (11.35) % 5.43  % 12.98  % 27.77  % 36.58  % (1)Investment securities and loans that are subject to prepayment are shown in the table by the earlier of their re-pricing date or their expected repayment date and not by their contractual maturity date. Nonaccrual loans of $66.5 million are included within the over five year maturity category.  (2)Management considers interest bearing transaction accounts and savings accounts to be core deposits and, therefore, not as rate sensitive as other deposit accounts and borrowed money. Accordingly, only 60.6% of interest bearing transaction accounts and 54.4% of savings accounts are considered to re-price within one year. If all of the interest bearing transaction accounts and savings accounts were considered to re-price within one year, the one-year cumulative gap would change from a positive 5.43% to a negative 17.64%. -66- The interest rate sensitivity gap analysis provides an overall picture of Park’s static interest rate risk position. At December 31, 2025, the cumulative interest earning assets maturing or repricing within twelve months were $3,986 million compared to the cumulative interest bearing liabilities maturing or repricing within twelve months of $3,501 million.  For the twelve-month cumulative interest rate sensitivity gap position, rate sensitive assets exceeded rate sensitive liabilities by $485 million or 5.4% of interest earning assets.  At December 31, 2024, the cumulative interest earning assets maturing or repricing within twelve months were $3,955 million compared to the cumulative interest bearing liabilities maturing or repricing within twelve months of $3,653 million.  For the twelve-month cumulative interest rate sensitivity gap position, rate sensitive assets exceeded rate sensitive liabilities by $302 million or 3.4% of interest earning assets. The percentage of interest bearing liabilities maturing or repricing within one year was 61.7% at year-end 2025, compared to 62.9% at year-end 2024. A positive twelve-month cumulative rate sensitivity gap (assets exceed liabilities) would suggest that Park’s net interest margin would increase if interest rates were to increase.  Conversely, a negative twelve-month cumulative rate sensitivity gap would suggest that Park’s net interest margin would decrease if interest rates were to increase. However, the usefulness of the interest rate sensitivity gap analysis as a forecasting tool in projecting net interest income is limited.  While the gap analysis does take into consideration both contractual repayments and expected prepayments of various assets, it does not consider the magnitude, specific timing, or frequency by which assets or liabilities will reprice during a period and also contains assumptions as to the repricing of interest bearing transaction accounts and savings accounts that may not prove to be correct. Management supplements the interest rate sensitivity gap analysis with periodic simulations of balance sheet sensitivity under various interest rate and what-if scenarios to better forecast and manage the net interest margin.  Park’s management uses an earnings simulation model to analyze net interest income sensitivity to movements in interest rates.  This model is based on actual cash flows and repricing characteristics for balance sheet instruments and incorporates market-based assumptions regarding the impact of changing interest rates on the prepayment rate of certain assets and liabilities.  This model also includes management’s projections for activity levels of various balance sheet instruments and non-interest fee income and operating expense.  Assumptions based on the historical behavior of deposit rates and balances in relation to changes in interest rates are also incorporated into this earnings simulation model.  These assumptions are inherently uncertain and, as a result, the model cannot precisely measure net interest income and net income.  Actual results will differ from simulated results due to the timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies. Management uses a 50 basis point change in market interest rates per quarter for a total of 200 basis points per year in evaluating the impact of changing interest rates on net interest income and net income over a twelve-month horizon. At December 31, 2025, the earnings simulation model projected that net income would increase by 1.69% using a rising interest rate scenario and decrease by 2.11% using a declining interest rate scenario over the next year. At December 31, 2024, the earnings simulation model projected that net income would increase by 1.25% using a rising interest rate scenario and decrease by 1.34% using a declining interest rate scenario over the next year. At December 31, 2023, the earnings simulation model projected that net income would increase by 1.52% using a rising interest rate scenario and decrease by 1.92% using a declining interest rate scenario over the next year. Park’s net interest margin was 4.75% in 2025, 4.41% in 2024 and 4.11% in 2023.    Contractual Obligations: In the ordinary course of operations, Park enters into certain contractual obligations. The following table summarizes Park’s significant and determinable obligations by payment date at December 31, 2025. Further discussion of the nature of each specified obligation is included in the referenced Note to the Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K. -67- Table 33 - Contractual Obligations (1) December 31, 2025 Payments Due In 0-1 1-3 3-5 Over 5 (In thousands) Note Years Years Years Years Total Deposits without stated maturity 14 $ 7,453,761  $ —  $ —  $ —  $ 7,453,761  Certificates of deposit 14 $ 658,972  $ 82,769  $ 48,192  $ 19  789,952  Short-term borrowings 16 81,711  —  —  —  81,711  Operating leases 13 2,621  5,060  4,282  9,116  21,079  Defined benefit pension plan (2) 20 9,164  17,442  17,735  46,762  91,103  Supplemental Executive Retirement Plan agreements 20 937  2,689  2,546  37,879  44,051  Total contractual obligations $ 8,207,166  $ 107,960  $ 72,755  $ 93,776  $ 8,481,657  (1) Amounts do not include associated interest payments. (2) Pension payments reflect 10 years of payments, through 2035. As of December 31, 2025, Park had $25.6 million in unfunded commitments related to investments in qualified affordable housing projects which are not included in "Table 32 - Contractual Obligations" above. Commitments are funded when capital calls are made by the general partner. Park expects that the current commitments will be funded between 2026 and 2039. As of December 31, 2025, Park had $12.6 million in unfunded commitments related to certain equity investments which are not included in "Table 33 - Contractual Obligations" above. Commitments are funded when capital calls are made by the general partner. The Corporation’s operating lease obligations represent short-term and long-term lease and rental payments for facilities and equipment. Commitments, Contingent Liabilities, and Off-Balance Sheet Arrangements: In order to meet the financing needs of our customers, the Corporation issues loan commitments and standby letters of credit. At December 31, 2025, the Corporation had $1.6 billion of loan commitments and had $66.1 million of standby letters of credit. At December 31, 2024, the Corporation had $1.5 billion of loan commitments and had $33.5 million of standby letters of credit. Commitments to extend credit under loan commitments and standby letters of credit do not necessarily represent future cash requirements.  These commitments often expire without being drawn upon.  However, all of the loan commitments and standby letters of credit were permitted to be drawn upon in 2025. See "Note 25 - Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentration of Credit Risk" of the Notes to Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" in this Annual Report on Form 10-K, for additional information on loan commitments and standby letters of credit. The Corporation did not have any unrecorded significant contingent liabilities at December 31, 2025. Capital: Park’s primary means of maintaining capital adequacy is through retained earnings.  At December 31, 2025, the Corporation’s total shareholders’ equity was $1,352.8 million, compared to $1,243.8 million at December 31, 2024.  Total shareholders’ equity at December 31, 2025 was 13.80% of total assets, compared to 12.69% of total assets at December 31, 2024.  Tangible equity (non-U.S. GAAP) was $1,190.8 at December 31, 2025, and was $1,080.8 million at December 31, 2024. At December 31, 2025, tangible equity (non-U.S. GAAP) was 12.35% of tangible assets compared to 11.21% of tangible assets at December 31, 2024. A reconciliation of total shareholders' equity to tangible equity and total assets to tangible assets is included in Table 21. Net income was $180.1 million in 2025, $151.4 million in 2024 and $126.7 million in 2023. Cash dividends declared for Park's common shares were $90.1 million in 2025, $77.4 million in 2024 and $68.7 million in 2023. On a per share basis, the cash dividends declared were $5.53 per common share in 2025, $4.74 per common share in 2024 and $4.20 per common share in 2023. -68- The table below shows the repurchases and issuances of common shares and treasury shares for 2023 through 2025. Table 34 (In thousands, except share data) Treasury Shares Number of Common Shares Balance at January 1, 2023 $ (138,019) 16,263,583  Treasury shares repurchased (23,017) (199,000) Treasury shares reissued for share-based compensation awards 4,014  38,842  Treasury shares reissued for director grants 1,349  13,054  Balance at December 31, 2023 $ (155,673) 16,116,479  Treasury shares repurchased —  —  Treasury shares reissued for share-based compensation awards 3,633  35,161  Treasury shares reissued for director grants 758  7,342  Balance at December 31, 2024 $ (151,282) 16,158,982  Treasury shares repurchased (20,134) (120,000) Treasury shares reissued for share-based compensation awards 3,344  32,365  Treasury shares reissued for director grants 749  6,915  Balance at December 31, 2025 $ (167,323) 16,078,262  Park did not issue any new common shares, which had not already been held as treasury shares, in 2025, 2024 or 2023. Common shares (including treasury shares) had a balance of $465.0 million, $463.7 million and $463.3 million at December 31, 2025, 2024, and 2023, respectively. Accumulated other comprehensive (loss) income, net reflected a loss of $12.7 million, $46.2 million and $66.2 million at December 31, 2025, 2024, and 2023, respectively. During 2025, the change in net unrealized holding (loss) gain on AFS debt securities, net of income tax, was a gain of $30.6 million, which included a $1.8 million, net of income tax, realized loss on the sale of debt securities. During 2024, the change in net unrealized holding (loss) gain on AFS debt securities, net of income tax, was a gain of $5.0 million, which included a $415,000, net of income tax, realized loss on the sale of debt securities. During 2023, the change in net unrealized holding (loss) gain on AFS debt securities, net of income tax, was a gain of $27.8 million, which included a $6.2 million, net of income tax, realized loss on the sale of debt securities. Additionally, Park recognized an other comprehensive gain of $2.9 million, net of income tax, related to the change in pension plan assets and benefit obligations in 2025, compared to a $15.1 million gain in 2024, which included $4.9 million, net of income tax, related to a realized pension settlement gain. Park recognized an other comprehensive gain of $8.4 million, net of income tax, related to the change in pension plan assets and benefit obligations in 2023. Financial institution regulators have established guidelines for minimum capital ratios for banks, thrifts and bank holding companies. Park has elected not to include the net unrealized gain or loss on debt securities AFS in computing regulatory capital. Park has adopted the Basel III regulatory capital framework as approved by the federal banking agencies. Under the Basel III regulatory capital framework, in order to avoid limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers, Park must hold a capital conservation buffer of 2.5% above the adequately capitalized risk-based capital ratios. The amounts shown below as the adequately capitalized ratio plus capital conservation buffer include the 2.50% buffer. The Federal Reserve Board has also adopted capital requirements Park must maintain to be deemed "well capitalized" and remain a financial holding company. Park and PNB met each of the well-capitalized ratio guidelines applicable to them at December 31, 2025. The following table indicates the capital ratios for PNB and Park at December 31, 2025 and December 31, 2024. -69- Table 35 - PNB and Park Capital Ratios As of December 31, 2025 Leverage Tier 1 Risk-Based Common Equity Tier 1 Total Risk-Based PNB 10.45  % 12.08  % 12.08  % 13.53  % Park 12.11  % 13.99  % 13.99  % 15.13  % Adequately capitalized ratio 4.00  % 6.00  % 4.50  % 8.00  % Adequately capitalized ratio plus capital conservation buffer 4.00  % 8.50  % 7.00  % 10.50  % Well-capitalized ratio - PNB 5.00  % 8.00  % 6.50  % 10.00  % Well-capitalized ratio - Park N/A 6.00  % N/A 10.00  % As of December 31, 2024 Leverage Tier 1 Risk-Based Common Equity Tier 1 Total Risk-Based PNB 9.80  % 11.44  % 11.44  % 12.85  % Park 11.51  % 13.46  % 13.28  % 16.63  % Adequately capitalized ratio 4.00  % 6.00  % 4.50  % 8.00  % Adequately capitalized ratio plus capital conservation buffer 4.00  % 8.50  % 7.00  % 10.50  % Well-capitalized ratio - PNB 5.00  % 8.00  % 6.50  % 10.00  % Well-capitalized ratio - Park N/A 6.00  % N/A 10.00  % Effects of Inflation: Balance sheets of financial institutions typically contain assets and liabilities that are monetary in nature and, therefore, differ greatly from most commercial and industrial companies which have significant investments in premises, equipment and inventory.  During periods of inflation, financial institutions that are in a net positive monetary position will experience a decline in purchasing power, which does have an impact on growth.  Another significant effect on internal equity growth is other expenses, which tend to rise during periods of inflation. Management believes the most significant impact on financial results is the Corporation's ability to align our asset/liability management program to react to changes in interest rates.