Item 7.01 - Regulation FD Disclosure.
On February 28, 2023, The Park National Bank ("Park National Bank"), the
national bank subsidiary of Park National Corporation (the "Registrant"), issued
a news release announcing that Park National Bank had reached an agreement with
the United States Department of Justice (the "DOJ") to increase the efforts of
Park National Bank to promote home lending in the Columbus, Ohio market. The
agreement, which is reflected in the proposed consent order filed today in the
United States District Court for the Southern District of Ohio (the "DOJ Consent
Order"), serves to voluntarily resolve all claims of the United States alleging
that Park National Bank's mortgage lending practices within the Columbus, Ohio
Metropolitan Statistical Area violated the Fair Housing Act and the Equal Credit
Opportunity Act. A copy of the news release issued by Park National Bank is
furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated
herein by reference.
In accordance with the terms of the DOJ Consent Order, Park National Bank will
invest $7.75 million over five years in a loan subsidy fund to increase credit
opportunities for home mortgages, home improvement loans and home refinance
loans for consumers applying for loans in majority minority census tracts
("MMCT's") in Fairfield, Franklin, Hocking, Licking, Morrow and Perry counties
in Ohio (the "Columbus Lending Area"). Park National Bank will also devote a
minimum of $500,000 over five years toward one or more community development
partnership programs that provide services to residents of MMCTs in the Columbus
Lending Area related to credit, financial education, homeownership and
foreclosure prevention; and at least $150,000 per year over five years toward
advertising, community outreach, consumer financial education and credit
counseling in the Columbus Lending Area. Park National Bank will also establish
one new mortgage loan production office and one new full-service branch in MMCTs
in the Columbus Lending Area and hire four lenders, one of whom will be
Spanish-speaking, focused on serving these communities. In addition, Park
National Bank will continue to maintain, throughout the term of the DOJ Consent
Order, Park National Bank's full-time Director of Community Home Lending and
Development position, who will oversee Park National Bank's lending in MMCTs in
the Columbus Lending Area.
The DOJ Consent Order must be approved by the United States District Court for
the Southern District of Ohio, Western Division, and once approved and entered
by that Court, the DOJ Consent Order will resolve all claims by the United
States against Park National Bank.
The information in this Item 7.01 is being furnished pursuant to Item 7.01 of
Form 8-K and shall be not deemed to be "filed" for the purposes of Section 18 of
the Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that Section 18. The furnishing of information in this Item 7.01
shall not be deemed an admission as to the materiality of any information
herein.
Item 9.01 - Financial Statements and Exhibits.
(a)Not applicable
(b)Not applicable
(c)Not applicable
(d)Exhibits. The following exhibits are included with this Current Report on
Form 8-K:
Exhibit No. Description
99.1 News Release issued by Park National Bank of February 28, 2023
104 Cover Page Interactive Data File (the cover page XBRL tags are embedded
within the Inline XBRL document)
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