MONROEVILLE, Pa., Jan 19 /PRNewswire-FirstCall/ -- Parkvale Financial Corporation reported net income for the six-month period ended December 31, 2005 of $6.5 million or $1.14 per diluted share, up 21.1% from net income of $5.3 million or $0.95 per diluted share for the six-month period ended December 31, 2004. The $1.1 million increase in net income for the December 2005 six months reflects a $3.6 million increase in net interest income partially offset by a $2.4 million increase in non-interest expense. The improved margins include the positive effects of seven offices added with the acquisition of Advance Financial Bancorp in December 2004. Net interest income for the six months ended December 31, 2005 increased to $18.9 million from $15.3 million for the six months ended December 31, 2004. Return on average equity was 11.19% for the six months ended December 2005 compared to 10.00% for the six months ended December 2004.
Net income for the quarter ended December 31, 2005 was $3.2 million or $0.57 per diluted share, up 19.5% from net income of $2.7 million or $0.48 per diluted share for the quarter ended December 31, 2004. The $528,000 increase in net income for the December 2005 quarter reflects increased margins on net earning assets, offset by an increase in non-interest expense. Net interest income increased to $9.5 million from $7.7 million for the prior period. Return on average equity was 11.11% for the December 2005 quarter compared to 10.09% for the December 2004 quarter.
On January 18, 2006, Parkvale purchased the Parkvale Building located at the corner of Routes 22 and 48 in Monroeville. This building has served as the main office and headquarters for Parkvale Bank since 1987 and the vast majority of Parkvale's administrative staff is employed at this location.
Parkvale Financial Corporation is the parent of Parkvale Savings Bank, which has 47 offices in the tri-state area. The Bank had assets of $1.8 billion on December 31, 2005.
(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,
2005 2004 2005 2004
Total interest income $22,003 $17,582 $43,655 $35,086
Total interest expense 12,543 9,913 24,759 19,772
Net interest income 9,460 7,669 18,896 15,314
Provision for loan losses 146 54 282 111
Net interest income after
provision for losses 9,314 7,615 18,614 15,203
Gain on sale of assets 24 - 24 14
Other income 2,225 1,874 4,508 3,763
Total other expenses 6,790 5,536 13,630 11,220
Income before income taxes 4,773 3,953 9,516 7,760
Income tax expense 1,533 1,241 3,048 2,420
Net income $3,240 $2,712 $6,468 $5,340
Basic earnings per share $0.58 $0.49 $1.15 $0.96
Diluted earnings per share $0.57 $0.48 $1.14 $0.95
Dividends per share $0.20 $0.20 $0.40 $0.40
SELECTED FINANCIAL DATA
(Dollar amounts in thousands, except per share data)
Dec. 31, June 30, Dec. 31,
2005 2005 2004
Total assets $1,844,289 $1,875,844 $1,913,653
Total deposits 1,435,680 1,478,335 1,536,252
Total loans, net 1,228,728 1,198,070 1,241,342
Loan loss reserves 15,008 15,188 15,611
Non-performing assets 7,157 8,815 7,187
Ratio of classified assets to
total assets 0.39% 0.47% 0.38%
Allowance for loan losses as a
% of gross loans 1.21% 1.25% 1.24%
Total shareholders' equity $117,141 $112,971 $107,971
Book value per share $20.80 $20.09 $19.32
OTHER SELECTED DATA
Three months ended Six months ended
December 31, December 31,
2005 2004 2005 2004
Average interest rate spread 2.11% 1.89% 2.10% 1.88%
Return on average assets 0.70% 0.67% 0.70% 0.66%
Return on average equity 11.11% 10.09% 11.19% 10.00%
Other expense to average
assets 1.47% 1.38% 1.47% 1.39%
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