Exhibit 99.1
FOR IMMEDIATE RELEASE July 21, 2005
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PARKVALE FINANCIAL CORPORATION ANNOUNCES INCREASED EARNINGS
FOR THE FOURTH QUARTER AND FISCAL YEAR 2005
PARKVALE FINANCIAL CORPORATION, MONROEVILLE, PA (NASDAQ: PVSA) REPORTED
NET INCOME FOR THE QUARTER ENDED JUNE 30, 2005 OF $3.2 MILLION OR $0.57 PER
DILUTED SHARE, UP 46.2%, COMPARED TO NET INCOME OF $2.2 MILLION OR $0.39 PER
DILUTED SHARE FOR THE QUARTER ENDED JUNE 30, 2004. The $984,000 increase in net
income for the June 2005 quarter reflects a $3.2 million increase in net
interest income offset by increases of $1.5 million in non-interest expense and
$598,000 in income taxes. The June 2004 quarterly results included gains on the
sale of assets of $446,000. The increase in net income for the quarter is
primarily attributable to the seven offices added with the acquisition of
Advance Financial Bancorp in December 2004. Return on average equity was 11.42%
for the three months ended June 30, 2005, up from 8.48% for the quarter ended in
June 2004.
PARKVALE FINANCIAL CORPORATION REPORTED NET INCOME FOR THE FISCAL YEAR
ENDED JUNE 30, 2005 OF $11.7 MILLION OR $2.06 PER DILUTED SHARE, UP 16.4%
COMPARED TO NET INCOME OF $10.0 MILLION OR $1.77 PER DILUTED SHARE FOR THE
FISCAL YEAR ENDED JUNE 30, 2004. The $1.7 million increase in fiscal year 2005
net income reflects a $6.2 million increase in net interest income offset by
increases of $3.3 million in non-interest expense and $1.1 million in income
taxes. Net interest income for the twelve months ended June 30, 2005 increased
to $34.8 million from $28.5 million for the twelve months ended June 30, 2004.
The fiscal June 2005 results contain gains on the sale of assets and securities
of $27,000 compared to fiscal 2004 gains on the sale of assets and securities of
$1.1 million. Return on average equity was 10.70% for the fiscal year ended June
30, 2005, up from 9.75% for the fiscal year ended June 30, 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
June 30, 2005.
(Condensed Consolidated Statements of Operations and selected
financial data are 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 STATEMENTS OF OPERATIONS
(Dollar amounts in thousands except per share data)
(Unaudited)
THREE MONTHS ENDED YEAR ENDED
JUNE 30, JUNE 30,
2005 2004 2005 2004
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Net interest income $9,730 $6,488 $34,757 $28,524
Provision for loan losses 86 (74) 229 (106)
Net gain on sale of assets and securities 0 446 27 1,055
Other non-interest income 2,247 1,829 8,149 7,013
Other non-interest expenses 7,116 5,644 25,597 22,346
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Income before income taxes 4,775 3,193 17,107 14,352
Income tax expense 1,564 966 5,440 4,336
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Net income $3,211 $2,227 $11,667 $10,016
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Net income per diluted share $0.57 $0.39 $2.06 $1.77
Dividend per share $0.20 $0.20 $0.80 $0.76
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SELECTED FINANCIAL DATA
(Dollar amounts in thousands except per share data)
JUNE 30,
2005 2004
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Total assets $1,875,844 $1,612,453
Savings deposits 1,478,335 1,281,971
Loans, net of allowance 1,198,070 1,015,078
Loan loss allowance 15,188 13,808
Nonperforming loans and foreclosed real estate 8,815 7,953
Ratio of nonperforming assets to total assets 0.47% 0.49%
Allowance for loan losses as a % of gross loans 1.25 1.34
Total shareholders' equity $112,971 $104,686
Book value per share $20.09 $18.76
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OTHER SELECTED DATA
THREE MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
2005 2004 2005 2004
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Average interest rate spread 2.14% 1.58% 2.02% 1.76%
Return on average assets 0.68 0.55 0.67 0.62
Return on average equity 11.42 8.48 10.70 9.75
Other non-interest expenses to average assets 1.51 1.40 1.46 1.39
PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar amounts in thousands except share data)
JUNE 30,
Assets 2005 2004
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Cash and noninterest-earning deposits $ 26,040 $ 23,814
Federal funds sold 81,000 14,000
Interest-earning deposits in other banks 9,474 13,547
Investment securities available for sale (cost of $24,682 in 2005
and $20,304 in 2004) (Note B) 25,022 20,372
Investment securities held to maturity (fair value of $459,645
in 2005 and $475,759 in 2004) (Note B) 460,080 477,574
Loans, net of allowance of $15,188 in 2005 and $13,809 in 2004 (Note C) 1,198,070 1,015,078
Foreclosed real estate, net (Note D) 1,654 2,998
Office properties and equipment, net (Note D) 13,053 10,049
Goodwill 25,634 7,561
Intangible assets and deferred charges 7,487 3,573
Prepaid expenses and other assets (Note L) 28,330 23,887
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Total assets $1,875,844 $1,612,453
Liabilities and Shareholders' Equity
Liabilities
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Deposits (Note E) $1,478,335 $1,281,971
Advances from Federal Home Loan Bank (Note F) 217,141 171,093
Other debt (Note F) 23,116 19,310
Trust preferred securities (Note F) 32,200 25,000
Advance payments from borrowers for taxes and insurance 6,511 6,030
Other liabilities (Note L) 5,570 4,363
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Total liabilities 1,762,873 1,507,767
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Shareholders' Equity (Notes G and I)
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 3,536 3,616
Treasury stock at cost - 1,112,948 shares in 2005 and 1,153,806 shares in 2004 (21,680) (22,687)
Accumulated other comprehensive income 216 43
Retained earnings 124,164 116,979
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Total shareholders' equity 112,971 104,686
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Total liabilities and shareholders' equity $1,875,844 $1,612,453
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Book value per share $20.09 $18.76
PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands except per share data)
YEARS ENDED JUNE 30,
2005 2004 2003
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Interest Income:
Loans $58,259 $56,339 $72,473
Investments 17,486 12,553 11,879
Federal funds sold 1,777 1,151 1,678
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Total interest income 77,522 70,043 86,030
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Interest Expense:
Deposits (Note E) 30,837 31,348 44,127
Borrowings 10,159 8,948 8,329
Trust preferred securities 1,769 1,223 1,308
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Total interest expense 42,765 41,519 53,764
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Net interest income 34,757 28,524 32,266
Provision for loan losses (Note C) 229 (106) 308
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Net interest income after provision for loan losses 34,528 28,630 31,958
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Noninterest Income:
Service charges on deposit accounts 5,702 4,474 4,370
Other service charges and fees 1,178 1,070 1,497
Net gain on sale of assets and securities (Note J) 27 1,055 1,091
Miscellaneous 1,269 1,469 1,087
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Total other income 8,176 8,068 8,045
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Noninterest Expenses:
Compensation and employee benefits 13,872 12,328 12,984
Office occupancy 4,611 4,197 4,155
Marketing 378 381 496
FDIC insurance 194 200 224
Office supplies, telephone and postage 1,791 1,582 1,661
Real estate owned expenses and writedowns 0 0 1,100
Miscellaneous 4,751 3,658 3,946
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Total other expenses 25,597 22,346 24,566
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Income before income taxes 17,107 14,352 15,437
Income tax expense (Note H) 5,440 4,336 4,908
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Net income $11,667 $10,016 $10,529
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Net income per share:
Basic $2.08 $1.80 $1.89
Diluted $2.06 $1.77 $1.86