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Investing.com - Raymond (NSE:RYMD) James initiated coverage on Park National (NYSE:PRK), a $2.76 billion market cap regional bank, with a Market Perform rating on Monday.
The financial services firm cited Park National’s low-cost core deposit base, which is supporting an elevated net interest margin (NIM) and driving attractive profitability for the bank. According to InvestingPro data, the bank maintains a solid 13% return on equity and has consistently paid dividends for 39 consecutive years.
Raymond James noted that while Park National’s balance sheet has remained stagnant for several years, the firm expects the bank to leverage its strong currency in a transaction to overcome regulatory headwinds.
The research firm believes Park National is "currently clicking on all cylinders" with its business operations and financial performance.
Raymond James concluded that the positive attributes of Park National’s business model are already accurately reflected in its premium valuation, supporting the neutral Market Perform rating.
In other recent news, Park National Corporation announced its decision to redeem $175 million in outstanding 4.50% Fixed-to-Floating Rate Subordinated Notes due 2030. The redemption is scheduled for September 1, 2025, and will be conducted at a price equal to 100% of the principal amount, plus any accrued and unpaid interest up to, but not including, the redemption date. This move is outlined in the company’s SEC filing and will be executed under the terms of the Indenture dated August 20, 2020, with U.S. Bank National Association acting as trustee. Park National has made it clear that this announcement does not serve as the official notice of redemption. Instead, holders of the notes should look out for the formal notice delivered by U.S. Bank. This development was disclosed in a press release statement included in Park National Corporation’s Form 8-K filing with the Securities and Exchange Commission.
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