MONROEVILLE, Pa., April 29 /PRNewswire-FirstCall/ -- Parkvale Financial Corporation reported net income for the quarter ended March 31, 2010 of $1.4 million compared to a net loss of $14.1 million for the quarter ended March 31, 2009. Income available to common shareholders, after the payment of dividends on preferred stock was $1.0 million or $0.18 per diluted common share for the quarter ended March 31, 2010 compared to a loss of $14.5 million or $2.65 per diluted common share for the quarter ended March 31, 2009. The $15.5 million increase in net income for the March 2010 quarter reflects a lower level of debt security impairment charges of $1.0 million compared to $20.9 million for the quarter ended March 31, 2009. In addition, the provision for loan losses decreased by $662,000 to $1.2 million for the quarter. The above positive factors were partially offset by increases in tax expense and noninterest expense and by a decrease in net interest income. Income tax expense was $472,000 in the March 2010 quarter compared to a tax benefit of $3.2 million in the March 2009 quarter, reflecting the increase in pre-tax income. Noninterest expense increased by $621,000 for the quarter as a result of a $704,000 higher FDIC insurance premium. Net interest income decreased by $546,000 or 5.5% from $10.0 million to $9.4 million due to the Corporation's interest rate risk strategy of shortening the duration of its investment portfolio in anticipation of rising interest rates. The shorter terms on investment securities, together with lower yields on new loans and rates on existing ARM loans repricing down, resulted in a decline in the average interest rate spread from 2.26% in the March 2009 quarter to 2.13% in the March 2010 quarter.
For the nine month period ended March 31, 2010, net income was $4.7 million compared to a net loss of $10.9 million for the nine month period ended March 31, 2009. After giving effect to the dividends on the preferred stock, the income available to common shareholders was $3.5 million or $0.64 per diluted common share for the nine months ended March 31, 2010 compared to a loss of $11.3 million or $2.08 per diluted common share for the nine months ended March 31, 2009. The net income for the nine months ended March 31, 2010 reflects a lower level of debt security impairment charges of $4.6 million compared to $25.9 million for the prior period. The provision for loan losses decreased by $131,000 to $4.9 million for the nine months ended March 31, 2010. Noninterest expense increased by $1.3 million primarily due to higher FDIC insurance premiums of $1.8 million. Net interest income decreased $3.7 million or 11.6% and income tax expense increased by $2.6 million or 137.7%. Net interest income for the nine months ended March 31, 2010 decreased to $27.8 million from $31.5 million for the nine months ended March 31, 2009. The average interest rate spread declined from 2.35% for the nine months ended March 31, 2009 to 2.02% for the nine months ended March 31, 2010 due to shorter terms on investment securities along with lower yields on new loans and downward repricing of existing ARM loans.
(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, 2010 2009 2010 2009 ---- ---- ---- ---- Total interest income $18,632 $22,028 $57,954 $68,983 Total interest expense 9,218 12,068 30,132 37,504 ----- ------ ------ ------ Net interest income 9,414 9,960 27,822 31,479 Provision for loan losses 1,164 1,826 4,851 4,982 ----- ----- ----- ----- Net interest income after provision for losses 8,250 8,134 22,971 26,497 Net impairment charges recognized in earnings (1,044) (20,909) (4,587) (25,909) Other non-interest income 2,551 2,714 9,803 8,085 Total non-interest expense 7,867 7,246 22,773 21,493 ----- ----- ------ ------ Income (loss) before income taxes 1,890 (17,307) 5,414 (12,820) Income tax expense (benefit) 472 (3,237) 716 (1,920) --- ------ --- ------ Net income (loss) 1,418 (14,070) 4,698 (10,900) Preferred stock dividend 397 397 1,191 432 --- --- ----- --- Income (loss) to common shareholders $1,021 ($14,467) $3,507 ($11,332) ====== ======== ====== ======== Basic earnings (loss) per common share $0.18 ($2.65) $0.64 ($2.08) Diluted earnings (loss) per common share $0.18 ($2.65) $0.64 ($2.08) Dividends per common share $0.05 $0.22 $0.15 $0.66 SELECTED FINANCIAL DATA (In Thousands except per share data) March 31, June 30, March 31, 2010 2009 2009 ---- ---- ---- Total assets $1,896,225 $1,907,106 $1,906,436 Deposits 1,513,442 1,511,248 1,511,773 Total loans, net 1,033,004 1,108,936 1,143,015 Loan loss reserves 17,657 17,960 17,250 Non-performing assets (loans and foreclosed real estate) 33,905 33,641 31,491 Ratio of non-performing assets to total assets 1.79% 1.76% 1.65% Allowance for loan losses as a % of gross loans 1.68% 1.60% 1.49% Total shareholders' equity $148,955 $150,760 $149,752 Book value per common share 21.19 21.92 21.74 OTHER SELECTED DATA Three months Nine months ended ended March 31, March 31, 2010 2009 2010 2009 ---- ---- ---- ---- Average yield earned on all interest-earning assets 4.20% 5.09% 4.32% 5.32% Average rate paid on all interest- bearing liabilities 2.07% 2.83% 2.30% 2.97% Average interest rate spread 2.13% 2.26% 2.02% 2.35% Net yield on average interest- earning assets 2.12% 2.30% 2.07% 2.43% Return on average assets 0.30% -2.96% 0.33% -0.78% Return on average equity 3.68% -34.51% 4.10% -9.83% Non-interest expense to average assets 1.65% 1.52% 1.59% 1.54%
Parkvale Financial Corporation
CONTACT: Robert J. McCarthy, Jr., President and CEO, +1-412-373-4815;
Gilbert A. Riazzi, Vice President and Interim Principal, Financial Officer,
+1-412-373-4804, gil.riazzi@parkvale.com
