Exhibit 99.1
PARKVALE FINANCIAL CORPORATION
letter head
FOR IMMEDIATE RELEASE January 20, 2005
- ---------------------
PARKVALE FINANCIAL CORPORATION, MONROEVILLE, PA
ANNOUNCES EARNINGS FOR THE SECOND QUARTER OF FISCAL 2005
PARKVALE FINANCIAL CORPORATION (NASDAQ: PVSA) REPORTED NET INCOME FOR
THE QUARTER ENDED DECEMBER 31, 2004 OF $2.712 MILLION OR $0.48 PER DILUTED SHARE
COMPARED TO NET INCOME OF $2.703 MILLION OR $0.48 PER DILUTED SHARE FOR THE
QUARTER ENDED DECEMBER 31, 2003. The increase in net income for the December
2004 quarter is attributable to an increase in other income of $156,000 and a
reduction in noninterest expense of $64,000. In addition, the current quarter
reflects a provision for loan losses of $54,000 versus a net recovery of
$102,000 in the 2003 quarter. Return on average equity was 10.09% for the
December 2004 quarter.
FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2004, NET INCOME WAS $5.3
MILLION OR $0.95 PER DILUTED SHARE COMPARED TO NET INCOME OF $5.1 MILLION OR
$0.91 PER DILUTED SHARE FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2003. The
$207,000 increase in net income for the December 2004 six months reflects a
$782,000 increase in net interest income partially offset by a $140,000 decrease
in non-interest income and a $71,000 increase in non-interest expense. Net
interest income for the six months ended December 31, 2004 increased to $15.3
million from $14.5 million for the six months ended December 31, 2003. Return on
average equity was 10.00% for the six months ended December 2004.
On December 31, 2004, Parkvale completed its acquisition of Advance
Financial Bancorp. Parkvale Bank operates 46 offices throughout southwestern
Pennsylvania, Brooke County, West Virginia and Belmont and Jefferson Counties in
Ohio. The acquisition was accounted for as a purchase business combination and
its operations will be included in the consolidated statement of operations
effective January 1, 2005. This acquisition is reflected in the accompanying
statement of financial condition with assets acquired including $28 million of
investment securities, $250 million of loans and deposits assumed were $270
million. The Bank had total assets of $1.9 billion on December 31, 2004.
Parkvale's capital was $108 million or $19.32 per share at December 31, 2004.
(Condensed Consolidated Statement of Operations and selected financial
data is attached.)
Contact: Robert J. McCarthy, Jr. Timothy G. Rubritz
President and CEO Chief Financial Officer
(412) 373-4815 (412) 373-4817
email: timothy.rubritz@parkvale.com
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,
2004 2003 2004 2003
---------------------------------------------------------------
Total interest income $17,582 $17,967 $35,086 $36,196
Total interest expense 9,913 10,297 19,772 21,664
---------------------------------------------------------------
Net interest income 7,669 7,670 15,314 14,532
Provision for loan losses 54 (102) 111 (55)
---------------------------------------------------------------
Net interest income after provision for losses 7,615 7,772 15,203 14,587
Gain on sale of assets - - 14 406
Other income 1,874 1,718 3,763 3,511
Total other expenses 5,536 5,600 11,220 11,149
---------------------------------------------------------------
Income before income taxes 3,953 3,890 7,760 7,355
Income tax expense 1,241 1,187 2,420 2,222
---------------------------------------------------------------
Net income $2,712 $2,703 $5,340 $5,133
===============================================================
Basic earnings per share $0.49 $0.49 $0.96 $0.93
Diluted earnings per share $0.48 $0.48 $0.95 $0.91
Dividends per share $0.20 $0.18 $0.40 $0.36
- ------------------------------------------------------------------------------
SELECTED FINANCIAL DATA
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
DEC. 31, June 30, Dec. 31
2004 2004 2003
-----------------------------------------------
Total assets $1,913,403 $1,612,453 $1,597,195
Savings deposits 1,536,252 1,281,971 1,283,328
Total loans, net 1,241,342 1,015,078 1,128,358
Loan loss reserves 16,311 13,808 14,608
Non-performing assets 7,549 7,953 7,657
Ratio of classified assets to total assets 0.39% 0.49% 0.48%
Allowance for loan losses as a % of gross loans 1.30% 1.34% 1.28%
Total shareholders' equity $107,971 $104,686 $102,134
Book value per share 19.32 18.76 18.32
- ------------------------------------------------------------------------------
OTHER SELECTED DATA
THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
---------------------------------------------------------------
Average interest rate spread 1.89% 1.92% 1.88% 1.81%
Return on average assets 0.67% 0.67% 0.66% 0.64%
Return on average equity 10.09% 10.64% 10.00% 10.18%
Other expense to average assets 1.38% 1.40% 1.39% 1.38%