Park National (PRK) Stock Forecast & Price Target
Park National (PRK) Analyst Ratings
Bulls say
Park National Corp reported a 7% quarter-over-quarter increase in pre-provision net revenue (PPNR), reaching $53.4 million, which surpassed expectations mainly due to stronger net interest income (NII) and lower expenses. The company experienced a 3% increase in end-of-period (EOP) loans, driven by substantial growth in home equity (11% LQA), real estate (3% LQA), and commercial loans (8% LQA), alongside a similar 3% rise in EOP deposits. Additionally, the net interest margin (NIM) showed continued improvement, expanding 11 basis points to 4.62% for the seventh consecutive quarter, indicating a positive trend in profitability.
Bears say
Park National Corp reported a decline in non-performing assets (NPAs) to $63.3 million, equating to 80 basis points of loans and other real estate owned, yet this improvement suggests lingering concerns about the overall quality of the loan portfolio. Additionally, the company experienced a decrease in net charge-offs (NCOs) and a corresponding reduction in its loan loss reserve (LLR) to 1.12%, indicating potential vulnerabilities in credit risk management. Furthermore, fee income underperformed expectations, finishing at $26.6 million compared to a forecast of $27.5 million, which reflects challenges in generating revenue from non-interest sources.
This aggregate rating is based on analysts' research of Park National and is not a guaranteed prediction by Public.com or investment advice.
Park National (PRK) Analyst Forecast & Price Prediction
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