<PAGE> 1
FILED BY: PARK NATIONAL CORPORATION PURSUANT TO RULE
425 UNDER THE SECURITIES ACT OF 1933 AND DEEMED FILED
PURSUANT TO RULE 14A-12 OF THE SECURITIES EXCHANGE ACT
OF 1934
NEWS RELEASE SUBJECT COMPANY: SECURITY BANC CORPORATION
(REGISTRATION NO. 333-53038)
For Release: January 16, 2001
Contact: David C. Bowers, EVP (740) 349-3708 or Jerry Nethers,
Vice President/Director of Marketing (740) 349-3710
PARK NATIONAL CORPORATION
REPORTS FOURTH QUARTER AND YEAR-END 2000 EARNINGS
AND DECLARES DIVIDEND
NEWARK, OHIO - Park National Corporation (AMEX/PRK) today announced record
earnings for 2000. Net income for the year totaled $55.405 million, which is an
18.42% increase compared to net income of $46.787 million in 1999. Per share
earnings increased 19.16% from $4.28 to $5.10.
Net income was $12.987 million, or $1.20 per share, and $7.569
million, or $.69 per share, for the fourth quarters of 2000 and 1999,
respectively.
The mergers of U.B. Bancshares, Inc. and SNB Corp. into Park National
Corporation were effective on April 30, 2000. The pooling-of-interests
accounting method was used for both mergers and as a result, Park National
Corporation's financial statements for periods prior to April 30, 2000 have been
restated to include the financial results of U.B. Bancshares, Inc. and its
subsidiary, United Bank, N.A., Bucyrus, Ohio and the financial results of SNB
Corp. and its subsidiary, Second National Bank, Greenville, Ohio. As originally
reported, Park National Corporation's 1999 net income per share was $4.67.
<PAGE> 2
In conjunction with announcing the financial results, the Board of
Directors of Park National Corporation approved a cash dividend of $.71 per
share, payable on March 9, 2001, to shareholders of record on February 23, 2001.
On November 21, 2000, Park National Corporation announced the execution
of a definitive agreement and plan of merger that provides for Security Banc
Corporation, Springfield, Ohio, to merge into Park National Corporation. The
merger is subject to approval of the shareholders of Security Banc Corporation
and Park National Corporation and regulatory approvals. Park National
Corporation has scheduled a special shareholders meeting for March 12, 2001, 9
A.M. local time, at the Main Office of The Park National Bank in Newark, Ohio to
vote on the approval of the merger agreement. Security Banc Corporation has
scheduled a special shareholders meeting for March 9, 2001, 10 A.M. local time,
at the Main Office of Security National Bank in Springfield, Ohio to vote on the
approval of the merger agreement. The record date for both special shareholder
meetings is January 29, 2001. Shareholders of Park National Corporation and
Security Banc Corporation will be receiving a joint proxy statement/prospectus
and proxy card in early February 2001.
Park National Corporation is an Ohio-based bank holding company
headquartered in Newark, Ohio whose subsidiaries, in addition to United Bank,
N.A. and Second National Bank, include The Park National Bank, Fairfield
National Division, The Richland Trust Company, Century National Bank, The
First-Knox National Bank, Farmers and Savings Division, Scope Leasing, Inc., and
Guardian Finance. With the new banks acquired in 2000, Park National Corporation
has $3.2 billion in assets, seventy-eight financial service offices and
eighty-five ATMs operating in twenty Ohio counties.
<PAGE> 3
ADDITIONAL INFORMATION AND WHERE TO FIND IT:
Park filed a Registration Statement on SEC Form S-4 on December 29,
2000, and Park and Security will file a joint proxy statement/prospectus and
other relevant documents concerning their proposed merger transaction with the
SEC. Investors and shareholders are urged to read the Registration Statement and
the joint proxy statement/prospectus carefully when it becomes available and any
other relevant documents filed with the SEC because they will contain important
information. Investors and shareholders will be able to obtain free copies of
the joint proxy statement/prospectus (when it is available) and other documents
filed by Park and Security through the website maintained by the SEC at
www.sec.gov. In addition, you may obtain copies of the joint proxy
statement/prospectus and other documents filed by Park with the SEC free of
charge by requesting them in writing from Park National Corporation, 50 North
Third Street, Newark, Ohio 43055, Attention: David C. Bowers, or by telephone at
(740) 349-3708. You may obtain copies of documents filed with the SEC by
Security free of charge by requesting them in writing from Security Banc
Corporation, 40 South Limestone Street, Springfield, Ohio 45502, Attention: J.
William Stapleton, or by telephone at (937) 324-6916.
Park and Security, and their respective directors and executive
officers, may be deemed to be participants in the solicitation of proxies from
the shareholders of Park and Security in connection with the merger. Information
about the directors and executive officers of Park and their ownership of Park
common shares is set forth in the Registration Statement and will be included in
the joint proxy statement/prospectus. Information about the directors and
executive officers of Security and their ownership of Security common shares is
also set forth in the
<PAGE> 4
Registration Statement and will be included in the joint proxy
statement/prospectus. In addition, five of the executive officers of Security
have entered into employment agreements with subsidiaries of Security which will
be honored by Park; one executive officer-director of Security will become an
executive officer and director of Park; three executive officers of Security
hold in-the-money options to purchase Security common shares which will become
vested and exercisable in connection with the merger and will be converted into
options to purchase Park common shares if not exercised prior to completion of
the merger; Park has agreed to take the actions necessary to ensure that each
participant in Security's split dollar insurance benefit program will continue
to receive the vested portion of the participant's death benefits following
completion of the merger; and Park has agreed to provide indemnification and
director and officer liability insurance coverage to the directors, officers and
employees of Security and Security's subsidiaries. Investors and shareholders
may obtain additional information regarding the interests of the foregoing
individuals by reading the joint proxy statement/prospectus when it becomes
available.
In additional to the Registration Statement and the joint proxy
statement/prospectus, Park and Security file annual, quarterly and special
reports, proxy statements and other information with the SEC. You may read and
copy any reports, statements or other information filed by Park or Security at
the SEC Public Reference Room at 450 Fifth Street, N.W., Washington, DC 20549 or
at any of the SEC's other public reference rooms in New York, New York and
Chicago, Illinois. Please call the SEC at 1-800-SEC-0330 for further information
on the operation of the public reference rooms.
Park's and Security's filings with the SEC are also available to the
public from commercial document-retrieval services and at the website maintained
by the SEC at www.sec.gov.
<PAGE> 5
SAFE HARBOR STATEMENT:
Except for the historical and present factual information contained in
this press release, the matters discussed in this press release, including
statements as to the expected benefits of the merger such as efficiencies,
market profile, product offerings and financial strength, and the competitive
ability and position of the combined company, and other statements identified by
words such as "expects," believes," "plans," and similar expressions are
forward-looking statements within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties that may cause actual results
to differ materially, including: (1) the risk that regulatory approvals will not
be obtained or that the shareholders of Park or Security will not adopt the
merger agreement; (2) the risk that income, interest and non-interest, following
the merger is lower than expected; (3) the risk that the costs of providing
compensation and benefits to Park's employees increase; (4) the risk that
competition increases in the banking industry or in Park's markets; (5) the risk
that costs or difficulties related to the integration of Security's business
will be greater than expected; (6) the risk that there are adverse changes in
general economic conditions or in competitive forces; (7) the risk that
technological changes are more difficult or expensive to implement than
anticipated; (8) the risk that there are adverse changes in the securities
markets; (9) the risk that Park suffers the loss of key personnel; and (10)
other risk factors relating to the banking industry, Security or Park as
detailed from time to time in each of Park's and Security's reports filed with
the SEC. Park and Security disclaim any responsibility to update these
forward-looking statements.
<PAGE> 6
<TABLE>
PARK NATIONAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
<CAPTION>
DECEMBER 31,
---------------------------
2000 1999
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 109,870 $ 123,975
----------------------------------------------------------------------------------------------------------
Federal funds sold 0 1,550
----------------------------------------------------------------------------------------------------------
Investment securities 743,822 782,891
----------------------------------------------------------------------------------------------------------
Loans (net of unearned interest) 2,278,186 2,127,425
----------------------------------------------------------------------------------------------------------
Allowance for possible loan losses 48,927 45,176
----------------------------------------------------------------------------------------------------------
LOANS, NET 2,229,259 2,082,249
----------------------------------------------------------------------------------------------------------
Bank premises and equipment, net 31,056 32,468
----------------------------------------------------------------------------------------------------------
Other assets 97,061 110,230
----------------------------------------------------------------------------------------------------------
TOTAL ASSETS $3,211,068 $3,133,363
----------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing $ 358,016 $ 342,680
----------------------------------------------------------------------------------------------------------
Interest-bearing 2,057,559 2,065,382
----------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS 2,415,575 2,408,062
----------------------------------------------------------------------------------------------------------
Borrowings 436,034 381,251
----------------------------------------------------------------------------------------------------------
Other liabilities 39,707 53,989
----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 2,891,316 2,843,302
----------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Common stock (No par value; 20,000,000 shares authorized
in 2000 and 1999; 11,191,729 shares issued in 2000
and 11,251,598 in 1999) 76,869 79,108
----------------------------------------------------------------------------------------------------------
Accumulated other comprehensive income, net of taxes 5,732 (9,161)
----------------------------------------------------------------------------------------------------------
Retained earnings 270,100 243,488
----------------------------------------------------------------------------------------------------------
Treasury stock (412,747 shares in 2000 and 359,190 shares in 1999) (32,949) (23,374)
----------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 319,752 290,061
----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,211,068 $3,133,363
----------------------------------------------------------------------------------------------------------
</TABLE>
The historical financial statements of Park have been restated to show Park, U.
B. Bancshares Inc. and SNB Corp. on a combined basis.
<PAGE> 7
<TABLE>
PARK NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
<CAPTION>
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------------------- -------------------
2000 1999 2000 1999
---------------------------------------------------------------------------------- -------------------
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $52,649 $46,202 $198,991 $173,722
---------------------------------------------------------------------------------- -------------------
Interest on:
Obligations of U.S. Government, its agencies
and other securities 10,625 10,464 42,953 42,449
---------------------------------------------------------------------------------- -------------------
Obligations of states and political subdivisions 1,754 1,936 7,236 7,777
---------------------------------------------------------------------------------- -------------------
Other interest income 10 133 152 368
---------------------------------------------------------------------------------- -------------------
TOTAL INTEREST INCOME 65,038 58,735 249,332 224,316
---------------------------------------------------------------------------------- -------------------
Interest expense:
Interest on deposits:
Demand and savings deposits 4,293 4,295 18,184 17,056
---------------------------------------------------------------------------------- -------------------
Time deposits 18,043 15,488 67,053 59,238
---------------------------------------------------------------------------------- -------------------
Interest on borrowings 7,095 4,476 25,200 15,260
---------------------------------------------------------------------------------- -------------------
TOTAL INTEREST EXPENSE 29,431 24,259 110,437 91,554
---------------------------------------------------------------------------------- -------------------
NET INTEREST INCOME 35,607 34,476 138,895 132,762
---------------------------------------------------------------------------------- -------------------
Provision for loan losses 2,879 5,850 8,729 11,269
---------------------------------------------------------------------------------- -------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 32,728 28,626 130,166 121,493
---------------------------------------------------------------------------------- -------------------
Other income 8,214 7,629 30,580 28,373
---------------------------------------------------------------------------------- -------------------
Gain (loss) on sale of securities (889) (3,865) (889) (4,809)
---------------------------------------------------------------------------------- -------------------
Other expense:
Salaries and employee benefits 11,321 10,932 43,523 40,550
---------------------------------------------------------------------------------- -------------------
Occupancy expense 1,083 1,049 4,294 4,233
---------------------------------------------------------------------------------- -------------------
Furniture and equipment expense 1,178 1,330 4,705 4,972
---------------------------------------------------------------------------------- -------------------
Other expense 8,480 8,950 30,397 30,157
---------------------------------------------------------------------------------- -------------------
TOTAL OTHER EXPENSE 22,062 22,261 82,919 79,912
---------------------------------------------------------------------------------- -------------------
INCOME BEFORE FEDERAL INCOME TAXES 17,991 10,129 76,938 65,145
---------------------------------------------------------------------------------- -------------------
Federal income taxes 5,004 2,560 21,533 18,358
---------------------------------------------------------------------------------- -------------------
NET INCOME $12,987 $ 7,569 $ 55,405 $ 46,787
================================================================================== ===================
PER SHARE:
NET INCOME - BASIC $ 1.20 $ 0.70 $ 5.11 $ 4.30
---------------------------------------------------------------------------------- -------------------
NET INCOME - DILUTED $ 1.20 $ 0.69 $ 5.10 $ 4.28
---------------------------------------------------------------------------------- -------------------
</TABLE>
The historical financial statements of Park have been restated to show Park, U.
B. Bancshares Inc. and SNB Corp. on a combined basis.
<PAGE> 8
<TABLE>
PARK NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
DECEMBER 31, 2000
<CAPTION>
INCOME STATEMENT PERCENT
THREE MONTHS ENDED DECEMBER 31, 2000 1999 CHANGE
---- ---- ------
<S> <C> <C> <C>
NET INTEREST INCOME $ 35,607 $ 34,476 3.28%
------------------------------------------------------------------------------
PROVISION FOR LOAN LOSSES 2,879 5,850 -50.79%
------------------------------------------------------------------------------
OTHER INCOME 8,214 7,629 7.67%
------------------------------------------------------------------------------
GAIN (LOSS) ON SALE OF SECURITIES (889) (3,865) -77.00%
------------------------------------------------------------------------------
OTHER EXPENSE 22,062 22,261 -0.89%
------------------------------------------------------------------------------
INCOME BEFORE TAXES 17,991 10,129 77.62%
------------------------------------------------------------------------------
NET INCOME 12,987 7,569 71.58%
------------------------------------------------------------------------------
NET INCOME PER SHARE-BASIC 1.20 0.70 71.43%
------------------------------------------------------------------------------
NET INCOME PER SHARE-DILUTED 1.20 0.69 73.91%
------------------------------------------------------------------------------
CASH DIVIDENDS PER SHARE 0.71 0.65 9.23%
------------------------------------------------------------------------------
RATIOS
RETURN ON AVERAGE ASSETS 1.61% 0.97%
------------------------------------------------------------------------------
RETURN ON AVERAGE EQUITY 16.73% 10.34%
------------------------------------------------------------------------------
NET INTEREST MARGIN 4.77% 4.89%
------------------------------------------------------------------------------
EFFICIENCY RATIO 49.56% 51.42%
------------------------------------------------------------------------------
NET CHARGE-OFFS AS A PERCENT OF LOANS 0.39% 0.89%
------------------------------------------------------------------------------
INCOME STATEMENT
YEAR ENDED DECEMBER 31,
NET INTEREST INCOME $ 138,895 $ 132,762 4.62%
------------------------------------------------------------------------------
PROVISION FOR LOAN LOSSES 8,729 11,269 -22.54%
------------------------------------------------------------------------------
OTHER INCOME 30,580 28,373 7.78%
------------------------------------------------------------------------------
GAIN (LOSS) ON SALE OF SECURITIES (889) (4,809) -81.51%
------------------------------------------------------------------------------
OTHER EXPENSE 82,919 79,912 3.76%
------------------------------------------------------------------------------
INCOME BEFORE TAXES 76,938 65,145 18.10%
------------------------------------------------------------------------------
NET INCOME 55,405 46,787 18.42%
------------------------------------------------------------------------------
NET INCOME PER SHARE-BASIC 5.11 4.30 18.84%
------------------------------------------------------------------------------
NET INCOME PER SHARE-DILUTED 5.10 4.28 19.16%
------------------------------------------------------------------------------
CASH DIVIDENDS PER SHARE 2.66 2.36 12.71%
------------------------------------------------------------------------------
RATIOS
RETURN ON AVERAGE ASSETS 1.75% 1.56%
------------------------------------------------------------------------------
RETURN ON AVERAGE EQUITY 18.82% 16.18%
------------------------------------------------------------------------------
NET INTEREST MARGIN 4.77% 4.90%
------------------------------------------------------------------------------
EFFICIENCY RATIO 47.86% 48.28%
------------------------------------------------------------------------------
NET CHARGE-OFFS AS A PERCENT OF LOANS 0.23% 0.37%
------------------------------------------------------------------------------
BALANCE SHEET
AT DECEMBER 31,
INVESTMENTS $ 743,822 $ 782,891 -4.99%
------------------------------------------------------------------------------
LOANS 2,278,186 2,127,425 7.09%
------------------------------------------------------------------------------
LOAN LOSS RESERVE 48,927 45,176 8.30%
------------------------------------------------------------------------------
TOTAL ASSETS 3,211,068 3,133,363 2.48%
------------------------------------------------------------------------------
DEPOSITS 2,415,575 2,408,062 0.31%
------------------------------------------------------------------------------
BORROWINGS 436,034 381,251 14.37%
------------------------------------------------------------------------------
EQUITY 319,752 290,061 10.24%
------------------------------------------------------------------------------
BOOK VALUE PER SHARE 29.66 26.63 11.38%
------------------------------------------------------------------------------
RATIOS
LOANS/ASSETS 70.95% 67.90%
------------------------------------------------------------------------------
LOAN LOSS RESERVE/LOANS 2.15% 2.12%
------------------------------------------------------------------------------
EQUITY/ASSETS 9.96% 9.26%
------------------------------------------------------------------------------
</TABLE>
The historical financial statements of Park have been restated to show Park, U.
B. Bancshares Inc. and SNB Corp. on a combined basis.
