805676--2/25/2009--PARK_NATIONAL_CORP

related topics

{condition, economic, financial}

{loss, insurance, financial}

{stock, price, share}

{acquisition, growth, future}

{competitive, industry, competition}

{financial, litigation, operation}

{loan, real, estate}

{regulation, change, law}

{operation, natural, condition}

{system, service, information}

{capital, credit, financial}

{debt, indebtedness, cash}

{operation, international, foreign}

Difficult market conditions and economic trends have adversely affected our industry and our business. Changes in economic and political conditions could adversely affect our earnings, as our borrowers ability to repay loans and the value of the collateral securing our loans decline. We extend credit to a variety of customers based on internally set standards and the judgment of our loan officers and bank presidents. We manage the credit risk through a program of underwriting standards, the review of certain credit decisions and an on-going process of assessing the quality of the credit already extended. Our credit standards and on-going process of credit assessment might not protect us from significant credit losses. We may elect or be compelled to seek additional capital in the future, but that capital may not be available when it is needed. Current levels of market volatility are unprecedented. Changes in interest rates could have a material adverse effect on our financial condition and results of operations. There can be no assurance that recent legislative and regulatory initiatives to address difficult market and economic conditions will stabilize the United States banking system and the enactment of these initiatives may significantly affect our financial condition, results of operation, liquidity or stock price. Because of our participation in the Capital Purchase Program, we are subject to several restrictions including restrictions on our ability to declare or pay dividends and repurchase our shares as well as restrictions on compensation paid to our executive officers. Future sales of our Common Shares or other securities may dilute the value of our Common Shares, which may adversely affect the market price of our Common Shares or the Series A Preferred Shares. If we are unable to redeem the Series A Preferred Shares after five years, the cost of this capital to us will increase substantially. The Series A Preferred Shares impact net income available to holders of our Common Shares and earnings per Common Share, and the Warrant we issued to the U.S. Treasury may be dilutive to holders of our Common Shares. We operate in extremely competitive markets, and our business will suffer if we are unable to compete effectively. Changes in the general economic conditions in our primary market areas could adversely impact results of operations and financial condition. Consumers may decide not to use banks to complete their financial transactions. We have limited operating experience in the Alabama and Florida markets in which Vision Bank operates. We may face risks and uncertainties as we convert Park National Bank and its divisions to one operating system. The preparation of our financial statements requires the use of estimates that may vary from actual results. Our allowance for loan losses may prove to be insufficient to absorb potential losses in our loan portfolio. We are exposed to operational risk. We depend upon the accuracy and completeness of information about customers and counterparties. Legislative or regulatory changes or actions could adversely impact us or the businesses in which we are engaged. Changes in accounting standards could impact reported earnings. We may be a defendant from time to time in the future in a variety of litigation and other actions, which could have a material adverse effect on our financial condition and results of operations. Environmental liability associated with commercial lending could have a material adverse effect on our business, financial condition and results of operations. We rely on dividends from our subsidiaries for substantially all of our revenue. Unauthorized disclosure of sensitive or confidential client or customer information, whether through a breach of our computer systems or otherwise, could severely harm our business. Our ability to grow may be limited if we cannot make acquisitions. Derivative transactions may expose us to unexpected risk and potential losses. Defaults by another larger financial institution could adversely affect financial markets generally. Terrorism, acts of war or international conflicts could have a material adverse effect on our financial condition and results of operations.

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805676--2/25/2009--PARK_NATIONAL_CORP_/OH/