Segment Information
Park's chief operating decision maker is Park's Chief Executive Officer and President. While the chief decision maker monitors the operating results of its lines of business, operations are managed and financial performance is evaluated on a consolidated basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.
The segment is determined by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products, and services are similar. The chief operating decision maker will evaluate the financial performance of Park's business components such as by evaluating interest income, interest expense, other revenue streams, significant expenses, and budget to actual results in assessing Park's segment and in the determination of allocation resources. The chief operating
decision maker uses consolidated net income to benchmark Park against its peers. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessment of performance and in establishing compensation. Loans, investments, deposits, and fiduciary income provide the revenues in the banking operation. Interest expense, provisions for credit losses, and payroll/benefits provide the significant expenses in the banking operation. All operations are domestic.
Accounting policies for Park's reportable segment are the same as described in Note 1 - Summary of Significant Accounting Policies. Segment performance is evaluated using consolidated net income. Information reported internally for performance assessment by the chief operating decision maker follows, inclusive of reconciliations of significant segment totals to the financial statements.
| | | | | | | | | | | | | | |
| | Banking Segment |
| (in thousands) | | 2025 | 2024 | 2023 |
| | | | |
| Interest Income | | $ | 544,540 | | $ | 522,965 | | $ | 471,670 | |
| | | | |
| Reconciliation of Revenue | | | | |
| Other revenues | | $ | 119,881 | | $ | 122,588 | | $ | 92,634 | |
| Total consolidated revenues | | $ | 664,421 | | $ | 645,553 | | $ | 564,304 | |
| | | | |
| Less: | | | | |
| Interest expense | | $ | 107,229 | | $ | 124,946 | | $ | 98,557 | |
| Segment net interest income and noninterest income | | $ | 557,192 | | $ | 520,607 | | $ | 465,747 | |
| | | | |
| Less: | | | | |
| Provision for credit losses | | 11,488 | 14,543 | 2,904 |
| 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 |
| Income taxes | | 41,250 | 33,305 | 26,870 |
| Segment net income/consolidated net income | | $ | 180,073 | | $ | 151,420 | | $ | 126,734 | |
| | | | |
| | | | | | | | | | | | | | |
| (in thousands) | | 2025 | 2024 | 2023 |
| Other segment disclosures | | | | |
| Interest income | | 544,540 | 522,965 | 471,670 |
| Interest expense | | 107,229 | 124,946 | 98,557 |
| Depreciation | | 11,191 | 12,192 | 14,015 |
| Amortization | | 1,042 | 1,215 | 1,323 |
| Other significant noncash items: | | | | |
| Provision for credit losses | | 11,488 | 14,543 | 2,904 |
| Segment assets | | 9,805,013 | 9,805,350 | 9,836,453 |
| | | | |
| Reconciliation of assets | | | | |
| Total assets for reportable segments | | $ | 9,805,013 | | 9,805,350 | 9,836,453 |
| Other assets | | — | — | — |
| Total consolidated assets | | $ | 9,805,013 | | 9,805,350 | 9,836,453 |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.