Parkvale Financial Corporation, Monroeville, PA Announces Earnings for the Second Quarter of Fiscal 2011
MONROEVILLE, Pa., Jan. 28, 2011 /PRNewswire/ -- Parkvale Financial Corporation (Nasdaq: PVSA) reported net income for the quarter ended December 31, 2010 of $1.8 million compared to net income of $2.4 million for the quarter ended December 31, 2009. Income available to common shareholders, after the payment of dividends on preferred stock, was $1.4 million or $0.26 per diluted common share for the quarter ended December 31, 2010 compared to $2.0 million or $0.38 per diluted common share for the quarter ended December 31, 2009. The $584,000 decrease in net income for the December 31, 2010 quarter is primarily due to a $909,000 decrease in gain on sale of assets, a $338,000 increase in non-interest expense and a $164,000 increase in non-cash debt security impairment charges. These factors were partially offset by a $383,000 decrease in the provision for loan losses and a $239,000 decrease in income tax expense, reflecting a lower level of pre-tax income. The increase in non-interest expense for the quarter was primarily due to a $259,000 increase in FDIC insurance premiums. Net interest income increased by $122,000 due to a 16 basis point increase in the average interest rate spread during the December 31, 2010 quarter.
For the six month period ended December 31, 2010, net income was $4.1 million compared to net income of $3.3 million for the six month period ended December 31, 2009. After giving effect to the dividends on the preferred stock, the income available to common shareholders was $3.3 million or $0.59 per diluted common share for the six months ended December 31, 2010 compared to $2.5 million or $0.46 per diluted common share for the six months ended December 31, 2009. The $784,000 increase in net income for the six months ended December 31, 2010 reflects a $1.6 million decrease in the provision for loan losses and a $1.6 million decrease in non-cash debt security impairment charges. These factors were partially offset by an $839,000 decrease in gain on sale of assets, a $585,000 increase in FDIC insurance premiums and a $914,000 increase in income tax expense. Net interest income decreased by $337,000 or 1.8% due to a decrease in net average interest-earning assets, offset by a 16 basis point increase in the average interest rate spread.
Parkvale Financial Corporation is the parent of Parkvale Bank, which has 47 offices in the Tri-State area and assets of $1.8 billion at December 31, 2010.
(Condensed Consolidated Statement of Operations and selected financial data is attached.)
PARKVALE FINANCIAL CORPORATION |
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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS |
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(Dollar amounts in thousands, except per share data) |
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(Unaudited) |
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Three months ended |
Six months ended |
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December 31, |
December 31, |
||||
2010 |
2009 |
2010 |
2009 |
||
Total interest income |
$16,363 |
$19,300 |
$33,202 |
$39,322 |
|
Total interest expense |
7,151 |
10,210 |
15,131 |
20,914 |
|
Net interest income |
9,212 |
9,090 |
18,071 |
18,408 |
|
Provision for loan losses |
1,015 |
1,398 |
2,049 |
3,687 |
|
Net interest income after provision for losses |
8,197 |
7,692 |
16,022 |
14,721 |
|
Net impairment charges recognized in earnings |
(946) |
(782) |
(1,942) |
(3,543) |
|
Net gain on sale of assets |
194 |
1,103 |
1,366 |
2,205 |
|
Other non-interest income |
2,568 |
2,485 |
5,478 |
5,047 |
|
Total non-interest expense |
7,652 |
7,314 |
15,702 |
14,906 |
|
Income before income taxes |
2,361 |
3,184 |
5,222 |
3,524 |
|
Income tax expense |
520 |
759 |
1,158 |
244 |
|
Net income |
1,841 |
2,425 |
4,064 |
3,280 |
|
Preferred Stock dividend |
397 |
397 |
794 |
794 |
|
Income available to common shareholders |
$1,444 |
$2,028 |
$3,270 |
$2,486 |
|
Basic earnings per common share |
$0.26 |
$0.38 |
$0.59 |
$0.46 |
|
Diluted earnings per common share |
$0.26 |
$0.38 |
$0.59 |
$0.46 |
|
Dividends per common share |
$0.02 |
$0.05 |
$0.04 |
$0.10 |
|
SELECTED FINANCIAL DATA |
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(Dollar amounts in thousands, except per share data) |
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Dec. 31, |
June 30, |
Dec. 31, |
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2010 |
2010 |
2009 |
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Total assets |
$1,791,116 |
$1,842,380 |
$1,915,896 |
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Total deposits |
1,458,571 |
1,488,073 |
1,528,142 |
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Total loans, net |
1,017,834 |
1,032,363 |
1,053,009 |
||
Loan loss allowance |
19,621 |
19,209 |
18,883 |
||
Non-performing loans and foreclosed real estate |
35,580 |
35,157 |
36,307 |
||
Ratio to total assets |
1.99% |
1.91% |
1.90% |
||
Allowance for loan losses as a % of gross loans |
1.89% |
1.83% |
1.76% |
||
Total shareholders' equity |
$122,136 |
$118,944 |
$151,513 |
||
Book value per common share |
$16.21 |
$15.77 |
$21.73 |
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OTHER SELECTED DATA |
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Three months ended |
Six months ended |
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December 31, |
December 31, |
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2010 |
2009 |
2010 |
2009 |
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Average yield earned on all interest-earning assets |
3.91% |
4.30% |
3.93% |
4.38% |
|
Average rate paid on all interest-bearing liabilities |
1.70% |
2.25% |
1.78% |
2.39% |
|
Average interest rate spread |
2.21% |
2.05% |
2.15% |
1.99% |
|
Net yield on average interest-earning assets |
2.20% |
2.03% |
2.14% |
2.05% |
|
Return on average assets |
0.41% |
0.51% |
0.44% |
0.34% |
|
Return on average equity |
5.46% |
6.37% |
6.07% |
4.32% |
|
Other expense to average assets |
1.69% |
1.53% |
1.71% |
1.56% |
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SOURCE Parkvale Financial Corporation
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