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KBRA Comments on Park National Corporation's Acquisition of First Citizens Bancshares, Inc.

PRK
  • On October 27, 2025, Park National Corporation announced a definitive all-stock agreement to acquire First Citizens Bancshares, Inc. for approximately $317 million.
  • The transaction is valued at 1.68x tangible book value, with closing expected in 1Q26 pending approvals & integration anticipated in 3Q26.
  • Upon completion, First Citizens National Bank will merge into The Park National Bank, creating a combined entity with ~$12.7 billion in assets, ~$9.5 billion in loans, & ~$10.4 billion in deposits.
  • The deal will result in Park National Corporation exceeding the $10 billion regulatory threshold.
  • Projected ownership will be split approximately 89% for Park National Corporation & 11% for First Citizens Bancshares, Inc.
  • First Citizens Bancshares' CEO & Chairman, Jeff Agee, will become President of the newly formed Tennessee Region of Park National Bank.
  • The combined company expects to be slightly accretive to tangible book value at close with pro forma TCE of ~11% & CET1 of ~13%.
  • KBRA notes capital will remain strong for the rating category & is expected to rebuild quickly due to projected earnings accretion.
  • Park National anticipates 30% cost-savings from the acquisition & expects to leverage ~$600 million in excess liquidity from First Citizens Bancshares.
  • The pro forma loan portfolio will see a slight increase in CRE from 25% to 28%, while consumer & other loans will decline from 29% to 25%.
  • First Citizens Bancshares operates 24 branches across Tennessee, holds #1 deposit market share in its headquarters MSA, & has total assets of $2.6 billion.