MONROEVILLE, Pa., April 20 /PRNewswire-FirstCall/ -- Parkvale Financial Corporation, reported net income for the nine months ended March 31, 2006 was $9.8 million or $1.73 per diluted share, up 16.1% on a per share basis, compared to net income of $8.5 million or $1.49 per diluted share for the nine months ended March 31, 2005. The $1.4 million increase, or 16.4% in net income for the March 2006 nine-month period reflects increases of $3.7 million in net interest income and $970,000 of non-interest income partially offset by increases of $2.2 million in non-interest expense and $769,000 in income tax expense. Net interest income for the nine months ended March 31, 2006 increased to $28.8 million from $25.0 million for the nine months ended March 31, 2005. Return on average equity was 11.22% for the nine months ended March 2006, up from 10.45% for the nine months ended March 2005.
Net income for the quarter ended March 31, 2006 of $3.4 million or $0.59 per diluted share, was up 9.3% on a per share basis, compared to net income of $3.1 million or $0.54 per diluted share for the quarter ended March 31, 2005. The $260,000 increase in net income for the March 2006 quarter reflects a $160,000 increase in net interest income, a $215,000 increase in non-interest income, and a $174,000 decrease in non-interest expense, which were partially offset by increases in the provision for loan losses and income taxes. Return on average equity was 11.29% for the March 2006 quarter compared to 11.31% for the March 2005 quarter.
Parkvale Financial Corporation is the parent of Parkvale Bank, which has 47 offices in the Tri State area. The Bank had assets of $1.9 billion at March 31, 2006.
(Condensed Consolidated Statement of Operations and selected financial data is attached.)
PARKVALE FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands except per share data)
(Unaudited)
Three months ended Nine months ended
March 31, March 31,
2006 2005 2006 2005
Total interest income $22,606 $21,039 $66,261 $56,125
Total interest expense 12,733 11,326 37,492 31,098
Net interest income 9,873 9,713 28,769 25,027
Provision for loan losses 180 32 462 143
Net interest income after provision
for losses 9,693 9,681 28,307 24,884
Gain on sale of assets 83 13 107 27
Total non-interest income 2,284 2,139 6,792 5,902
Total non-interest expense 7,087 7,261 20,717 18,481
Income before income taxes 4,973 4,572 14,489 12,332
Income tax expense 1,597 1,456 4,645 3,876
Net income $3,376 $3,116 $9,844 $8,456
Basic earnings per share $0.60 $0.55 $1.75 $1.51
Diluted earnings per share $0.59 $0.54 $1.73 $1.49
Cash dividends per share $0.20 $0.20 $0.60 $0.60
SELECTED FINANCIAL DATA
(In Thousands except per share data)
March 31, June 30, March 31,
2006 2005 2005
Total assets $1,852,022 $1,875,844 $1,891,547
Savings deposits 1,443,284 1,478,335 1,512,416
Total loans, net 1,228,776 1,198,070 1,205,102
Loan loss reserves 15,026 15,188 15,517
Non-performing assets 5,177 8,815 8,102
Ratio of classified assets to total
assets 0.28% 0.47% 0.43%
Allowance for loan losses as a % of
gross loans 1.21% 1.25% 1.27%
Total stockholders' equity $120,382 $112,971 $110,855
Book value per share 21.24 20.09 19.73
OTHER SELECTED DATA
Three months ended Nine months ended
March 31, March 31,
2006 2005 2006 2005
Average yield earned on all
interest-earning assets 5.18% 4.67% 5.04% 4.59%
Average rate paid on all
interest-earning liabilities 2.97% 2.55% 2.90% 2.61%
Average interest rate spread 2.21% 2.12% 2.14% 1.98%
Return on average assets 0.73% 0.66% 0.71% 0.66%
Return on average equity 11.29% 11.31% 11.22% 10.45%
Non-interest expense to average
assets 1.54% 1.53% 1.49% 1.44%
