PANAMA CITY, Fla., Oct. 27 /PRNewswire-FirstCall/ -- Vision
Bancshares, Inc., (OTC:VBAL.OB) (BULLETIN BOARD: VBAL.OB) , a $697
million two-bank holding company ("Vision"), reported record net
income of $2.8 million for the three months ended September 30,
2006 compared to net income of $2.0 million for the same quarter
last year. Basic and diluted net earnings per share were $0.47 and
$0.44, respectively, for the three months ended September 30, 2006,
which represent a 47% increase over basic and diluted net earnings
per share of $0.32 and $0.30, respectively, for the same quarter
last year. The increase in the Company's quarterly income resulted
as both banks posted record third quarter net income. On a quarter
to date basis, the Alabama bank posted net income of $2.1 million,
the Florida bank posted its ninth consecutive quarter of
profitability with net income of $1.0 million, and Vision
Bancshares, Inc. (on a parent only basis) posted a net loss of $284
thousand. "Our team takes great pride in presenting these top third
quarter results to our shareholders," said J. Daniel Sizemore,
Chairman and CEO. "Our record results continue to confirm our
success in building a strong community bank. Vision remains
extremely well positioned to participate in the continuing economic
vitality of the thriving market area from the Florida panhandle
throughout the Alabama Gulf Coast. Although the margin compression
and the slowdown in loan demand present challenges, 2006 will be
another record year for Vision Bancshares." Mr. Sizemore further
stated, "We are excited about our upcoming merger with Park
National Corporation. This merger will help us expand our service
menus, adding more options for large loans and consumer banking as
well as trust and investment services. Like Vision, Park emphasizes
local leadership and autonomy. We share identical values and the
same mission as the other Park banks: extraordinary personal
service delivered by experienced professionals who operate with
integrity and are devoted to their communities." ADDITIONAL
INFORMATION ABOUT THE PARK NATIONAL MERGER Park National
Corporation ("Park") intends to file with the SEC a registration
statement on Form S-4 containing a proxy statement/prospectus that
will be mailed to the shareholders of Vision in connection with the
merger transaction. Investors and shareholders of Vision are urged
to read the proxy statement/prospectus and any other relevant
documents filed with the SEC, as well as any amendments or
supplements to those documents, when they become available because
they will contain important information about Park, Vision and the
merger transaction. Investors and shareholders will be able to
obtain a free copy of the proxy statement/prospectus, as well as
other filings containing information about Park and Vision, at the
SEC's website (http://www.sec.gov/). Copies of the proxy
statement/prospectus, and the filings with the SEC that will be
incorporated by reference in the proxy statement/prospectus, can
also be obtained, free of charge, by directing a request to Park
National Corporation, 50 North Third Street, P.O. Box 3500, Newark,
Ohio 43058-3500, Attention: John W. Kozak, Chief Financial Officer
(740-349-3792), or to Vision Bancshares, Inc., 2201 West 1st
Street, P.O. Box 4649, Gulf Shores, AL 36547, Attention: Bill
Blackmon, Chief Financial Officer (251-967-4212). Park and Vision
and their respective directors and executive officers may be deemed
to be participants in the solicitation of proxies from the
shareholders of Vision in connection with the proposed merger.
Information about the directors and executive officers of Park is
set forth in the proxy statement for Park's 2006 annual meeting of
shareholders, as filed with the SEC on March 10, 2006. Information
about the directors and executive officers of Vision is set forth
in the proxy statement for Vision's 2006 annual meeting of
shareholders, as filed with the SEC on April 6, 2006. Additional
information regarding the interests of those participants and other
persons who may be deemed participants in the transaction may be
obtained by reading the proxy statement/prospectus regarding the
proposed merger when it becomes available. You may obtain free
copies of these documents as described above. This communication
shall not constitute an offer to sell or the solicitation of an
offer to buy any securities, nor shall there be any sale of
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification of
the securities under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended. Third quarter 2006 Balance Sheet
Highlights (Compared to Year-end 2005) * Assets grew 19% to $697.3
million. * Loans, net of unearned income and loans held for sale,
increased 11% to $552.3 million. * Non-interest bearing deposits
increased 11% to $91.1 million. * Total deposits increased 20% to
$594.7 million. Third quarter 2006 Income Highlights (Compared to
Third quarter 2005) * Interest income advanced 43% to $15.0
million. * Interest expense increased 86% to $6.1 million. * Net
interest income, before provision for loan losses, grew 24%. *
Non-interest income increased 39% to $1.2 million. * Non-interest
expenses grew 21% to $5.3 million. * Net income increased 40%. Net
Income Consolidated net income for the nine months ended September
30, 2006 was $7.3 million compared to $4.3 million for the nine
months ended September 30, 2005. The increase in net income
resulted as the Company continued to expand its market share and
increased its net interest margin by 48 basis points to 5.36% for
the first nine months of 2006 from 4.88% for the same period of
2005. During the first nine months of 2006, the Alabama bank
subsidiary posted net income of $5.9 million, the Florida bank
subsidiary posted net income of $2.3 million and Vision Bancshares,
Inc. (on a parent only basis) posted a net loss of $843 thousand.
Basic earnings per share for the nine months ended September 30,
2006 were $1.20 which represented a $0.50, or 71%, increase over
$0.70 per share for 2005. Diluted earnings per share were $1.12 and
$0.67 per share for the nine months ended September 30, 2006 and
2005, respectively. Asset Quality, Charge-Offs and Reserves The
credit quality of the Company's loan portfolio remains strong.
Nonperforming loans as a percent of total loans were 0.34% at
September 30, 2006 compared to 0.52% as of December 31, 2005.
Nonperforming assets as a percent of total assets were 0.29% at the
end of the third quarter 2006 compared to 0.44% at year-end 2005.
The Company had net charge-offs of $93 thousand during the first
nine months of 2006 compared to net charge-offs of $420 thousand
during the same period of 2005. The ratio of net charge-offs to
average loans was 0.02% and 0.10% at September 30, 2006 and 2005,
respectively. The Company continues to maintain adequate reserves
with an allowance for loan losses totaling $6.7 million at
September 30, 2006, or 1.21% of total loans, net of unearned income
and loans held for sale, compared to $5.7 million, or 1.15% of
total loans, net of unearned income and loans held for sale, at
December 31, 2005. The increase in the allowance for loan losses
during the first nine months of 2006 primarily resulted from the
growth in the Company's loan portfolio. As of September 30, 2006,
the Company's allowance for loan losses equaled 349.27% of its
total nonperforming loans. Loan Portfolio Total loans, net of
unearned income (excluding loans held for sale) increased 11% to
$552.3 million at September 30, 2006 from $499.2 million at
December 31, 2005. Management remains focused on growing the
portfolio with quality assets. Approximately 91.3% of the company's
loan portfolio is secured by real estate with a majority of those
loans consisting of commercial real estate, commercial
construction, and 1-4 family first mortgage residential loans. To
provide diversification within the real estate portfolio,
management has established guidelines based on percentages of the
total loan portfolio and percentages of capital according to loan
types. Management utilizes loan participations with a number of
banks as a tool to maintain diversity in the loan portfolio.
Management believes that the real estate portfolio is diversified
in various loan types, various price points, and is spread
geographically from Carrabelle, Florida to Fort Morgan, Alabama.
The portion of the loan portfolio related to existing condominium
units remained at 7.6% of total loans, continues to perform, and
remains well secured as the majority of condo loans have loan to
values of less than 80%. Loans for the purpose of financing
condominium developments along the Gulf Coast comprise
approximately 3.0% of the loan portfolio as the majority of these
loans are participated to other banks. To minimize market risk,
strict guidelines have been established for condominium development
lending with respect to qualified presales, percentage
non-refundable deposits by third party purchasers, number of units
to one borrower and prohibition of any financing contingency.
Furthermore, the Company employs qualified third party inspectors
to monitor construction. Of the nine projects being financed, two
projects were completed and paid off during the quarter, three are
completed and the debt associated with those projects is being
reduced and should be fully repaid by the end of the fourth quarter
by selling and closing the units, and four remain under
construction. Vision Bank provides letters of credit to purchasers
of preconstruction condominium units. The amount of letters of
credit issued has declined by 48% since year end as projects were
completed and the units were purchased. Despite media reports
indicating softening real estate markets nationwide, the markets we
serve remain strong for 1-4 family loans, residential lot loans,
and commercial real estate. These product types comprise 52.1% of
the loan portfolio. The Construction Lending Portfolio is comprised
of residential contract, residential spec, acquisition and
development lending, commercial construction, and multifamily
construction. Management takes appropriate steps to insure the
residential construction portfolio remains diversified by builder
and subdivision and to monitor this loan type on a monthly basis
with a focus on the level of spec lending. Acquisition and
development loans are monitored quarterly to minimize portfolio and
geographic concentrations. Deposits and Other Liabilities Vision
has an excellent, low cost deposit base. Total deposits at
September 30, 2006, were $594.7 million with a weighted average
cost of interest bearing deposits of 4.00%. Interest free demand
deposits accounted for 15% of total deposits while other core funds
(MMDA's, Savings and NOW's) accounted for 32%. Vision also utilizes
time deposits to fund its loan demand. At September 30, 2006, time
deposits accounted for 53% of total deposits. CD's and time deposit
open accounts greater than $100 thousand accounted for 30% while
brokered/internet based CD's accounted for approximately 3% of
total deposits. Included in total funding is $19.0 million in
borrowing from the Federal Home Loan Bank of Atlanta. The Company
has $15.5 million in junior subordinated debentures issued to its
wholly-owned Delaware statutory business trust subsidiary, Vision
Bancshares Trust I. Other borrowed funds also contain $1.7 million
in a capital lease obligation and $5.3 million of debt from
Variable Interest Entities that are included in the Company's
consolidated financial statements. About the Company In accordance
with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, Vision Bancshares, Inc. notes that
any statements in this press release, and elsewhere, that are not
historical facts are "forward-looking statements" that involve
risks and uncertainties that may cause the Company's actual results
of operations to differ materially from expected results. For a
discussion of such risks and uncertainties, see the Company's
Annual Report on Form 10-KSB for the most recently ended fiscal
year as well as its other filings with the U.S. Securities and
Exchange Commission. Vision Bancshares, Inc. was organized in July
1999 as a bank holding company and is headquartered in Panama City,
Florida. It is the parent company for Vision Bank in Alabama, a
state banking corporation organized under the laws of the State of
Alabama and Vision Bank in Florida, a state banking corporation
organized under the laws of the State of Florida. Vision Bank,
Alabama provides general retail and commercial banking services
principally to customers in Baldwin County, Alabama through its
offices located in Gulf Shores, Orange Beach, Point Clear, Foley,
Fairhope, Elberta and Daphne. Vision Bank, Florida provides general
retail and commercial banking services to customers in Bay, Gulf,
Okaloosa and Walton Counties in the panhandle of Florida through
its full service offices located in Panama City, Panama City Beach,
Santa Rosa Beach, Wewahitchka, Port St. Joe, Port St. Joe Beach and
Destin. DATASOURCE: Vision Bancshares, Inc. CONTACT: J. Daniel
Sizemore of Vision Bancshares, Inc., +1-251-967-4249 Web site:
http://www.visionbanc.com/
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