Park National Bank Corp. reported lower quarterly results this week after deciding to write-down $13 million for loan losses.
Net income for the third quarter ended up being $12 million, a more than 40 percent drop from the same quarter a year ago, Park National said. Third quarter 2011 net income was $20.4 million.
Included in the results a year ago were results of Vision Bank, which was then a division of Park. Vision Bank was sold this year, but the problem loan relationship carried over on the books of Park National, said Brady Burt, chief accounting officer of the bank. He said the bank hopes to still collect some money owed on the account, a loan relationship from Alabama. For now, the $13 million was wrote-off and the bank took an unexpected loan loss provision of the same amount, he said.
If not for the increased loan loss provision, Park National would have made approximately $20 million in net income in the third quarter this year, he said.
Park National, of Newark, is the parent company of Security National Bank, Clark County’s biggest bank. Unity National Bank of Piqua and Second National Bank of Greenville, are also divisions of Park National.
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