MONROEVILLE, Pa., April 24 /PRNewswire-FirstCall/ -- Parkvale Financial Corporation reported net income for the quarter ended March 31, 2008 of $3.5 million or $0.64 per diluted share, up 22.8% (28.0% on a per share basis) from net income of $2.9 million or $0.50 per diluted share for the quarter ended March 31, 2007. The $654,000 increase in net income for the March 2008 quarter reflects an increase in net interest income of $495,000 and the absence of a charge for the early extinguishment of debt of $625,000 incurred during the March 2007 quarter. These items were partially offset by higher provision for income taxes of $161,000, a $72,000 increase in the provision for loan losses and lower gains on the sale of assets (net) of $275,000 during the March 2008 quarter. Net interest income increased to $10.0 million from $9.6 million for the prior period, as the average yield on interest-earning assets increased along with a slight decrease in the average rate on interest-bearing liabilities.
The higher loan loss provision relates to a higher level of classified assets, as non-performing assets increased by $7.8 million or 116% compared to March 2007. At March 31, 2008, the ratio of non-performing assets to total assets was 0.78%, compared to 0.34% at June 30, 2007 and 0.37% at March 31, 2007. The allowance for loan losses as a percentage of gross loans was 1.26% at March 31, 2008, compared to 1.14% at June 30, 2007 and 1.17% at March 31, 2007. As mentioned above, other expenses in 2007 included $625,000 (pre-tax) on the early extinguishment of debt. Return on average equity was 10.64% for the March 2008 quarter, up from 8.93% for the March 2007 quarter.
For the nine month period ended March 31, 2008, net income was $10.7 million or $1.93 per diluted share, up 9.5% (12.9% on a per share basis) from net income of $9.8 million or $1.71 per diluted share for the nine-month period ended March 31, 2007. The $936,000 increase in net income for the March 2008 nine months reflects increases of $1.2 million in net interest income and $473,000 in noninterest income and a decrease in income tax expense of $483,000, offset by increases in provision for loan losses of $755,000 and noninterest expense of $477,000. Net interest income for the nine months ended March 31, 2008 increased to $29.8 million from $28.5 million for the nine months ended March 31, 2007. Return on average equity was 10.97% for the nine months ended March 2008 compared to 10.32% for the nine months ended March 2007.
(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, 2008 2007 2008 2007 Total interest income $24,535 $24,332 $74,325 $72,943 Total interest expense 14,488 14,780 44,565 44,395 Net interest income 10,047 9,552 29,760 28,548 Provision for loan losses 376 304 1,367 612 Net interest income after provision for losses 9,671 9,248 28,393 27,936 Gain on sale of assets (writedown) on securities (19) 256 (19) 380 Total other non-interest income 2,572 2,335 8,240 7,368 Total non-interest expense 7,122 7,552 21,620 21,143 Income before income taxes 5,102 4,287 14,994 14,541 Income tax expense 1,576 1,415 4,249 4,732 Net income $3,526 $2,872 $10,745 $9,809 Basic earnings per share $0.65 $0.51 $1.95 $1.73 Diluted earnings per share $0.64 $0.50 $1.93 $1.71 Cash dividends per share $0.22 $0.20 $0.66 $0.60 SELECTED FINANCIAL DATA (In Thousands except per share data) March 31, June 30, March 31, 2008 2007 2007 Total assets $1,856,807 $1,844,231 $1,825,311 Savings deposits 1,490,174 1,469,084 1,444,990 Total loans, net 1,181,982 1,234,397 1,251,612 Loan loss reserves 15,044 14,189 14,804 Non-performing assets 14,503 6,196 6,710 Ratio of non-performing assets to total assets 0.78% 0.34% 0.37% Allowance for loan losses as a % of gross loans 1.26% 1.14% 1.17% Total stockholders' equity $130,292 $129,670 $128,848 Book value per share 23.77 23.10 22.73 OTHER SELECTED DATA Three months ended Nine months ended March 31, March 31, 2008 2007 2008 2007 Average yield earned on all interest- earning assets 5.68% 5.56% 5.75% 5.53% Average rate paid on all interest- earning liabilities 3.42% 3.46% 3.51% 3.44% Average interest rate spread 2.26% 2.10% 2.24% 2.09% Return on average assets 0.77% 0.62% 0.78% 0.70% Return on average equity 10.64% 8.93% 10.97% 10.32% Non-interest expense to average assets 1.55% 1.63% 1.57% 1.51%
