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