MONROEVILLE, Pa., Jan. 23 /PRNewswire-FirstCall/ -- Parkvale Financial Corporation reported net income for the quarter ended December 31, 2008 of $2.1 million or $0.37 per diluted share compared to net income of $3.6 million or $0.64 per diluted share for the quarter ended December 31, 2007. The $1.5 million decrease in net income for the December 2008 quarter reflects a $1.1 million writedown of equity securities and a $1.8 million increase in the provision for loan losses, partially offset by a $749,000 decrease in income tax expense and an increase of $818,000 in net interest income. On an operating basis, excluding the security writedowns, net income for the December 2008 quarter would have been $2.8 million or $0.50 per share. Net interest income increased to $10.6 million from $9.8 million for the prior period. The higher loan loss provision relates to a higher level of classified assets, as the ratio of non-performing loans and real estate owned to total assets increased to 1.10% up from 0.85% at June 30, 2008. Return on average equity was 5.68% for the December 2008 quarter compared to 11.01% for the December 2007 quarter.
For the six month period ended December 31, 2008, net income was $3.2 million or $0.57 per diluted share compared to net income of $7.2 million or $1.29 per diluted share for the six-month period ended December 31, 2007. The $4.0 million decrease in net income for the December 2008 six months reflects $5.0 million of writedowns of equity and debt securities and a $2.2 million increase in the provision for loan losses, partially offset by an increase in net interest income of $1.8 million and a decrease in income tax expense of $1.4 million. On an operating basis, excluding the security writedowns, net income for the December 2008 six month period would have been $6.4 million or $1.16 per share. Net interest income for the six months ended December 31, 2008 increased to $21.5 million from $19.7 million for the six months ended December 31, 2007. Return on average equity was 4.52% for the six months ended December 2008 compared to 11.14% for the six months ended December 2007.
(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, 2008 2007 2008 2007 ---- ---- ---- ---- Total interest income $23,135 $24,976 $46,955 $49,790 Total interest expense 12,513 15,172 25,436 30,077 ------ ------ ------ ------ Net interest income 10,622 9,804 21,519 19,713 Provision for loan losses 2,129 288 3,156 991 ----- --- ----- --- Net interest income after Provision for losses 8,493 9,516 18,363 18,722 Net gain on sale and (writedown) of securities (1,060) - (4,982) - Other noninterest income 2,613 2,921 5,353 5,668 Total noninterest expense 7,151 7,288 14,247 14,498 ----- ----- ------ ------ Income before income taxes 2,895 5,149 4,487 9,892 Income tax expense 830 1,579 1,317 2,673 --- ----- ----- ----- Net income $2,065 $3,570 $3,170 $7,219 ====== ====== ====== ====== Basic earnings per common share $0.37 $0.65 $0.57 $1.30 Diluted earnings per common share $0.37 $0.64 $0.57 $1.29 Dividends per common share $0.22 $0.22 $0.44 $0.44 SELECTED FINANCIAL DATA (Dollar amounts in thousands, except per share data) Dec. 31, June 30, Dec. 31, 2008 2008 2007 ---- ---- ---- Total assets $1,890,250 $1,851,392 $1,828,508 Total deposits 1,481,785 1,493,685 1,458,688 Total loans, net 1,163,968 1,201,665 1,207,837 Loan loss allowance 15,897 15,249 14,819 Non-performing loans and foreclosed real estate 20,780 15,808 9,357 Ratio to total assets 1.10% 0.85% 0.51% Allowance for loan losses as a % of gross loans 1.35% 1.25% 1.21% Total shareholders' equity $163,264 $131,631 $128,080 Book value per common share $24.23 $23.58 $23.46 OTHER SELECTED DATA Three months Six months ended ended December 31, December 31, 2008 2007 2008 2007 ---- ---- ---- ---- Average yield earned on all interest- earning assets 5.38% 5.79% 5.43% 5.77% Average rate paid on all interest- earning liabilities 3.00% 3.58% 3.04% 3.56% Average interest rate spread 2.38% 2.21% 2.39% 2.21% Net yield on average interest earning assets 2.47% 2.27% 2.49% 2.29% Return on average assets 0.45% 0.78% 0.34% 0.79% Return on average equity 5.68% 11.01% 4.52% 11.14% Other expense to average assets 1.56% 1.59% 1.55% 1.58%
