Parkvale Financial Corporation Announces Earnings for the Second Quarter of Fiscal 2009

Jan 29, 2010, 18:22 ET from Parkvale Financial Corporation

MONROEVILLE, Penn., Jan. 29 /PRNewswire/ -- Parkvale Financial Corporation (Nasdaq: PVSA) reported net income for the quarter ended December 31, 2009 of $2.4 million compared to net income of $2.1 million for the quarter ended December 31, 2008. Income available to common shareholders, after the payment of dividends on preferred stock was $2.0 million or $0.38 per diluted common share for the quarter ended December 31, 2009 and $2.0 million or $0.37 per diluted common share for the quarter ended December 31, 2008. The $360,000 increase in net income for the December 2009 quarter reflects a recovery of $1.1 million upon the sale of a previously written down equity security, partially offset by writedowns of $782,000 on investment securities. The provision for loan losses decreased by $731,000 to $1.4 million for the quarter. Noninterest expense increased by $163,000 as a result of a $583,000 higher FDIC insurance premium for the quarter and net interest income decreased by $1.5 million or 14.4%. Net interest income decreased from $10.6 million to $9.1 million for the current period, reflecting lower interest rates and increased refinancing activity. Return on average equity was 6.37% for the December 2009 quarter compared to 5.68% for the December 2008 quarter.

For the six month period ended December 31, 2009, net income was $3.3 million compared to net income of $3.2 million for the six month period ended December 31, 2008. After giving effect to the dividends on the preferred stock, the income available to common shareholders was $2.4 million or $0.46 per diluted common share for the six months ended December 31, 2009 compared to $3.1 million or $0.57 per diluted common share for the six months ended December 31, 2008. The net income for the six months ended December 2009 reflects recoveries on the sale of equity securities of $2.2 million, $3.5 million of debt security impairment charges, provision for loan losses of $3.7 million and an increase in noninterest expense of $659,000 primarily due to higher FDIC insurance premiums of $1.1 million. Net interest income decreased $3.1 million or 14.5% and income tax expense decreased by $1.1 million or 81.5%. Net interest income for the six months ended December 31, 2009 decreased to $18.4 million from $21.5 million for the six months ended December 31, 2008. Return on average equity was 4.32% for the six months ended December 2009 compared to 4.52% for the six months ended December 2008.

(Condensed Consolidated Statement of Operations and selected financial data is attached.)

    
    
                          PARKVALE FINANCIAL CORPORATION                     
                  CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS             
               (Dollar amounts in thousands, except per share data)          
                                   (Unaudited)                               
                                                                             
                                                                 
                                        Three months ended  Six months ended 
                                             December 31,      December 31,   
                                             2009     2008     2009     2008 
                                             ----     ----     ----     ---- 
                                                                             
    Total interest income                 $19,300  $23,135  $39,322  $46,955 
    Total interest expense                 10,210   12,513   20,914   25,436 
                                           ------   ------   ------   ------ 
        Net interest income                 9,090   10,622   18,408   21,519 
    Provision for loan losses               1,398    2,129    3,687    3,156 
                                            -----    -----    -----    ----- 
        Net interest income after provision                                   
         for losses                         7,692    8,493   14,721   18,363 
                                                                             
    Net gain on sale (writedown) of                                          
     securities                              (782)  (1,060)  (3,543)  (5,007)
    Other noninterest income                3,588    2,613    7,252    5,378 
    Total noninterest expense               7,314    7,151   14,906   14,247 
                                            -----    -----   ------   ------ 
                                                                             
    Income before income taxes              3,184    2,895    3,524    4,487 
    Income tax expense                        759      830      244    1,317 
                                              ---      ---      ---    ----- 
    Net income                              2,425    2,065    3,280    3,170 
    Preferred Stock dividend                  397       35      794       35 
                                              ---       --      ---       -- 
    Income available to common                                               
     shareholders                          $2,028   $2,030   $2,486   $3,135 
                                           ======   ======   ======   ====== 
                                                                             
    Basic earnings per common share         $0.38    $0.37    $0.46    $0.57 
    Diluted earnings per common share       $0.38    $0.37    $0.46    $0.57 
    Dividends per common share              $0.05    $0.22    $0.10    $0.44 
    
    
    
                             SELECTED FINANCIAL DATA                         
               (Dollar amounts in thousands, except per share data) 
             
                                             Dec. 31,    June 30,    Dec. 31, 
                                                2009        2009        2008 
                                                ----        ----        ---- 
                                                                             
    Total assets                          $1,915,896  $1,907,106  $1,890,250 
    Total deposits                         1,528,142   1,511,248   1,481,785 
    Total loans, net                       1,053,009   1,108,936   1,163,968 
    Loan loss allowance                       18,883      17,960      15,897 
    Non-performing loans and foreclosed                                      
     real estate                              36,335      33,641      20,780 
       Ratio to total assets                    1.90%       1.76%       1.10%
    Allowance for loan losses as a % of                                      
     gross loans                                1.76%       1.60%       1.35%
    Total shareholders' equity              $151,513    $150,760    $163,264 
    Book value per common share               $21.73      $21.92      $24.23 
    
    
    
                           OTHER SELECTED DATA                     
                                                                   
                                                              
                                                  
                                         Three months ended   Six months ended
                                             December 31,       December 31, 
                                             2009   2008        2009   2008 
                                             ----   ----        ----   ---- 
                                                                   
    Average yield earned on all interest-                          
     earning assets                          4.30%  5.38%       4.38%  5.43%
    Average rate paid on all interest-                             
     bearing liabilities                     2.33%  3.00%       2.39%  3.04%
    Average interest rate spread             1.97%  2.38%       1.99%  2.39%
    Net yield on average interest-                                 
     earning assets                          2.03%  2.47%       2.05%  2.49%
    Return on average assets                 0.51%  0.45%       0.34%  0.34%
    Return on average equity                 6.37%  5.68%       4.32%  4.52%
    Other expense to average assets          1.53%  1.56%       1.56%  1.55%
    
    

SOURCE Parkvale Financial Corporation