Exhibit 99.1
PARKVALE
FINANCIAL CORPORATION
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4420 WILLIAM PENN HIGHWAY, MONROEVILLE, PA 15146-2774 (412) 373-7200
FAX# (412) 373-1570
For Immediate Release
April 21, 2005
PARKVALE FINANCIAL CORPORATION ANNOUNCES AN INCREASE IN EARNINGS
FOR THE THIRD QUARTER OF FISCAL 2005
PARKVALE FINANCIAL CORPORATION, MONROEVILLE, PA (NASDAQ: PVSA) REPORTED
NET INCOME FOR THE QUARTER ENDED MARCH 31, 2005 OF $3.1 MILLION OR $0.54 PER
DILUTED SHARE, UP 14.9% ON A PER SHARE BASIS, COMPARED TO NET INCOME OF $2.7
MILLION OR $0.47 PER DILUTED SHARE FOR THE QUARTER ENDED MARCH 31, 2004. The
$460,000 increase in net income for the March 2005 quarter reflects increases in
net interest income and non-interest income mitigated by an increase in
non-interest expense. The 17.3% increase in net income for the quarter is
primarily attributable to the acquisition of Advance Financial Bancorp (AFB) in
December 2004. Net interest income increased to $9.7 million from $7.5 million
for the prior period. Return on average equity was 11.31% for the March 2005
quarter, up from 10.21% for the March 2004 quarter.
NET INCOME FOR THE NINE MONTHS ENDED MARCH 31, 2005 WAS $8.5 MILLION OR
$1.49 PER DILUTED SHARE, UP 8.0% ON A PER SHARE BASIS, COMPARED TO NET INCOME OF
$7.8 MILLION OR $1.38 PER DILUTED SHARE FOR THE NINE MONTHS ENDED MARCH 31,
2004. The $667,000 increase in net income for the March 2005 nine months
reflects an increase in net interest income and non-interest income partially
offset by an increase in non-interest expense. Net interest income for the nine
months ended March 31, 2005 increased to $25.0 million from $22.0 million for
the nine months ended March 31, 2004. Return on average equity was 10.45% for
the nine months ended March 2005, up from 10.19% for nine months ended March
2004.
Parkvale Financial Corporation is the parent of Parkvale Bank, which
has 46 offices in the Tri State area. The Bank had assets of $1.9 billion at
March 31, 2005.
(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
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,
2005 2004 2005 2004
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Total interest income $21,039 $17,488 $56,125 $53,684
Total interest expense 11,326 9,984 31,098 31,648
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Net interest income 9,713 7,504 25,027 22,036
Provision for loan losses 32 23 143 (32)
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Net interest income after provision for losses 9,681 7,481 24,884 22,068
Gain on sale of assets 13 203 27 609
Total non-interest income 2,139 1,673 5,902 5,184
Total non-interest expense 7,261 5,553 18,481 16,702
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Income before income taxes 4,572 3,804 12,332 11,159
Income tax expense 1,456 1,148 3,876 3,370
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Net income $3,116 $2,656 $8,456 $7,789
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Earnings per diluted share $0.54 $0.47 $1.49 $1.38
Cash dividends per share $0.20 $0.20 $0.60 $0.56
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SELECTED FINANCIAL DATA
(IN THOUSANDS EXCEPT PER SHARE DATA)
MARCH 31, June 30, March 31,
2005 2004 2004
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Total assets $1,891,547 $1,612,453 $1,608,618
Savings deposits 1,512,416 1,281,971 1,284,120
Total loans, net 1,205,102 1,015,078 1,055,905
Loan loss reserves 15,445 13,808 14,577
Non-performing assets 7,754 7,953 7,256
Ratio of classified assets to total assets 0.41% 0.49% 0.45%
Allowance for loan losses as a % of gross loans 1.27% 1.34% 1.36%
Total stockholders' equity $110,855 $104,686 $104,408
Book value per share 19.73 18.76 18.60
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OTHER SELECTED DATA
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
2005 2004 2005 2004
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Average interest rate spread 2.12% 1.82% 1.98% 1.81%
Return on average assets 0.66% 0.66% 0.66% 0.65%
Return on average equity 11.31% 10.21% 10.45% 10.19%
Non-interest expense to average assets 1.53% 1.39% 1.44% 1.38%
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PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar amounts in thousands, except share data)
MARCH 31, June 30,
ASSETS 2005 2004
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(Unaudited)
Cash and noninterest-earning deposits $ 26,430 $ 23,814
Federal funds sold 80,000 14,000
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Cash and cash equivalents 106,430 37,814
Interest-earning deposits in other banks 214 13,547
Investment securities available for sale (cost of
$20,277 at March 31 and $20,304 at June 30) 20,572 20,372
Investment securities held to maturity (fair value
of $481,987 at March 31 & $475,759 at June 30) 485,156 477,574
Loans, net of allowance of $15,445 at March 31
and $13,808 at June 30 1,205,102 1,015,078
Foreclosed real estate, net 1,645 2,998
Office properties and equipment, net 13,411 10,049
Goodwill 24,457 7,561
Intangible assets and deferred charges 7,726 3,573
Prepaid expenses and other assets 26,834 23,887
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Total Assets $1,891,547 $1,612,453
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LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits $1,512,416 $1,281,971
Advances from Federal Home Loan Bank 202,241 171,093
Trust preferred securities 32,200 25,000
Escrow for taxes and insurance 5,787 6,030
Other liabilities 5,812 4,363
Other debt 22,236 19,310
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Total Liabilities $1,780,692 1,507,767
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SHAREHOLDERS' EQUITY
Preferred Stock ($1.00 par value; 5,000,000
shares authorized; 0 shares issued) - -
Common Stock ($1.00 par value; 10,000,000 shares
authorized; 6,734,894 shares issued) 6,735 6,735
Additional Paid in Capital 3,558 3,616
Treasury Stock at cost (1,114,911 shares in March
and 1,186,663 shares in June) (21,702) (22,687)
Accumulated other comprehensive income 188 43
Retained earnings 122,076 116,979
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Total Shareholders' Equity 110,855 104,686
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Total Liabilities and Shareholders' Equity $1,891,547 $1,612,453
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PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands, except per share data)
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
2005 2004 2005 2004
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(Unaudited) (Unaudited)
Interest Income:
Loans $16,163 $13,934 $42,138 $44,101
Investments 4,426 3,250 12,917 8,803
Federal funds sold 450 304 1,070 780
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Total interest income 21,039 17,488 56,125 53,684
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Interest Expense:
Savings deposits 8,206 7,471 22,431 24,106
Borrowings 2,608 2,204 7,453 6,623
Trust preferred securities 512 309 1,214 919
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Total interest expense 11,326 9,984 31,098 31,648
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Net interest income 9,713 7,504 25,027 22,036
Provision for loan losses 32 23 143 (32)
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Net interest income after
provision for losses 9,681 7,481 24,884 22,068
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Noninterest Income:
Service charges on deposit accounts 1,456 1,049 4,146 3,266
Other fees and service charges 370 265 860 820
Gain on sale of assets 13 203 27 609
Miscellaneous 313 359 896 1,098
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Total other income 2,152 1,876 5,929 5,793
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Noninterest Expenses:
Compensation and employee benefits 3,812 3,065 10,091 9,204
Office occupancy 1,329 1,075 3,318 3,186
Marketing 71 75 256 264
FDIC insurance 47 49 140 151
Office supplies, telephone, and postage 538 399 1,292 1,188
Miscellaneous 1,464 890 3,384 2,709
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Total other expense 7,261 5,553 18,481 16,702
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Income before income taxes 4,572 3,804 12,332 11,159
Income tax expense 1,456 1,148 3,876 3,370
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Net income $3,116 $2,656 $8,456 $7,789
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Basic earnings per share $0.55 $0.47 $1.51 $1.40
Diluted earnings per share $0.54 $0.47 $1.49 $1.38
Dividends per share $0.20 $0.20 $0.60 $0.56
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