Parkvale Financial Corporation, Monroeville, PA Announces Increased Earnings for the Third Quarter of Fiscal 2011
MONROEVILLE, Pa. April 29, 2011 /PRNewswire/ -- Parkvale Financial Corporation (NASDAQ: PVSA) reported net income for the quarter ended March 31, 2011 of $1.9 million, representing a 37.3% increase compared to net income of $1.4 million for the quarter ended March 31, 2010. Income available to common shareholders, after the payment of dividends on preferred stock, was $1.6 million or $0.28 per diluted common share for the quarter ended March 31, 2011 compared to net income of $1.0 million or $0.18 per diluted common share for the quarter ended March 31, 2010. The $529,000 increase in net income for the March 31, 2011 quarter reflects a $789,000 decrease in non-cash debt security impairment charges and a $473,000 decrease in the provision for loan losses. These factors were partially offset by a $315,000 decrease in net interest income and a $373,000 increase in income tax expense, reflecting a higher level of pre-tax income. The decrease in net interest income is due to a decrease in net average interest-earning assets, offset by a 32 basis point increase in the average interest rate spread during the March 31, 2011 quarter.
For the nine month period ended March 31, 2011, net income was $6.0 million compared to net income of $4.7 million for the nine month period ended March 31, 2010. After giving effect to the dividends on the preferred stock, the income available to common shareholders was $4.8 million or $0.87 per diluted common share for the nine months ended March 31, 2011 compared to net income of $3.5 million or $0.64 per diluted common share for the nine months ended March 31, 2010. The $1.3 million increase in net income for the nine months ended March 31, 2011 reflects a $2.4 million decrease in non-cash debt security impairment charges, a $2.1 million decrease in the provision for loan losses and a $521,000 increase in other non-interest income. These factors were partially offset by a $1.3 million increase in income tax expense, a $1.0 million decrease in gain on sale of assets, a $734,000 increase in FDIC insurance premiums and a $652,000 decrease in net interest income. The increase in income tax expense reflects a higher level of pre-tax income for the nine months ended March 31, 2011. The decrease in net interest income is due to a decrease in net average interest-earning assets, offset by a 23 basis point increase in the average interest rate spread during the nine months ended March 31, 2011.
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 March 31, 2011.
(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 |
Nine months ended |
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March 31, |
March 31, |
||||
2011 |
2010 |
2011 |
2010 |
||
Total interest income |
$15,982 |
$18,632 |
$49,184 |
$57,954 |
|
Total interest expense |
6,883 |
9,218 |
22,014 |
30,132 |
|
Net interest income |
9,099 |
9,414 |
27,170 |
27,822 |
|
Provision for loan losses |
691 |
1,164 |
2,740 |
4,851 |
|
Net interest income after provision for losses |
8,408 |
8,250 |
24,430 |
22,971 |
|
Net impairment charges recognized in earnings |
(255) |
(1,044) |
(2,197) |
(4,587) |
|
Net gain on sale of assets |
- |
167 |
1,366 |
2,372 |
|
Other non-interest income |
2,474 |
2,384 |
7,952 |
7,431 |
|
Total non-interest expense |
7,835 |
7,867 |
23,537 |
22,773 |
|
Income before income taxes |
2,792 |
1,890 |
8,014 |
5,414 |
|
Income tax expense |
845 |
472 |
2,003 |
716 |
|
Net income |
1,947 |
1,418 |
6,011 |
4,698 |
|
Preferred stock dividend |
397 |
397 |
1,191 |
1,191 |
|
Income available to common shareholders |
$1,550 |
$1,021 |
$4,820 |
$3,507 |
|
Basic earnings per common share |
$0.28 |
$0.18 |
$0.87 |
$0.64 |
|
Diluted earnings per common share |
$0.28 |
$0.18 |
$0.87 |
$0.64 |
|
Dividends per common share |
$0.02 |
$0.05 |
$0.06 |
$0.15 |
|
SELECTED FINANCIAL DATA |
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(Dollar amounts in thousands except per share data) |
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March 31, |
June 30, |
March 31, |
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2011 |
2010 |
2010 |
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Total assets |
$1,801,292 |
$1,842,380 |
$1,896,225 |
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Total deposits |
1,480,886 |
1,488,073 |
1,513,442 |
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Total loans, net |
998,936 |
1,032,363 |
1,033,004 |
||
Loan loss allowance |
19,030 |
19,209 |
17,657 |
||
Non-performing loans and foreclosed real estate |
31,751 |
35,157 |
33,905 |
||
Ratio to total assets |
1.76% |
1.91% |
1.79% |
||
Allowance for loan losses as a % of gross loans |
1.87% |
1.83% |
1.68% |
||
Total shareholders' equity |
$123,864 |
$118,944 |
$148,955 |
||
Book value per common share |
16.50 |
15.77 |
21.19 |
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OTHER SELECTED DATA |
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Three months ended |
Nine months ended |
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March 31, |
March 31, |
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2011 |
2010 |
2011 |
2010 |
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Average yield earned on all interest-earning assets |
4.10% |
4.20% |
3.99% |
4.32% |
|
Average rate paid on all interest-bearing liabilities |
1.65% |
2.07% |
1.74% |
2.30% |
|
Average interest rate spread |
2.45% |
2.13% |
2.25% |
2.02% |
|
Net yield on average interest-earning assets |
2.33% |
2.12% |
2.20% |
2.07% |
|
Return on average assets |
0.43% |
0.30% |
0.44% |
0.33% |
|
Return on average equity |
5.71% |
3.68% |
5.95% |
4.10% |
|
Other expense to average assets |
1.74% |
1.65% |
1.72% |
1.59% |
|
SOURCE Parkvale Financial Corporation
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