Exhibit 99.1
FOR IMMEDIATE RELEASE October 20, 2005
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PARKVALE FINANCIAL CORPORATION ANNOUNCES INCREASED EARNINGS
FOR THE FIRST QUARTER OF FISCAL 2006
PARKVALE FINANCIAL CORPORATION MONROEVILLE, PA (NASDAQ: PVSA) REPORTED
NET INCOME FOR THE QUARTER ENDED SEPTEMBER 30, 2005, OF $3.2 MILLION OR $0.57
PER DILUTED SHARE, UP 22.8%, COMPARED TO NET INCOME OF $2.6 MILLION OR $0.47 PER
DILUTED SHARE FOR THE QUARTER ENDED SEPTEMBER 30, 2004. The $600,000 increase in
net income for the September 2005 quarter reflects increased margins on net
earning assets, offset by an increase in non-interest expense. The improved
margins include the positive effects of the seven offices added with the
acquisition of Advance Financial Bancorp in December 2004. Net interest income
increased to $9.4 million from $7.6 million for the prior period. Return on
average equity was 11.27% for the September 2005 quarter compared to 9.92% for
the September 2004 quarter.
Parkvale Financial Corporation is the parent of Parkvale Bank, which
had 46 offices in the Tri-State area and assets of $1.85 billion at September
30, 2005.
Parkvale Bank opened its forty-seventh office on October 17, 2005 in
the Greengate Centre on Route 30 in Greensburg, Westmoreland County, PA.
(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
SEPTEMBER 30,
2005 2004
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Total interest income $21,652 $17,504
Total interest expense 12,216 9,859
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Net interest income 9,436 7,645
Provision for loan losses 136 57
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Net interest income after provision for losses 9,300 7,588
Gain on sale of assets - 14
Other income 2,283 1,889
Total other expenses 6,840 5,684
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Income before income taxes 4,743 3,807
Income tax expense 1,515 1,179
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Net income $3,228 $2,628
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Net income per share:
Basic $0.57 $0.47
Diluted $0.57 $0.47
Dividend per share $0.20 $0.20
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SELECTED FINANCIAL DATA
(IN THOUSANDS EXCEPT PER SHARE DATA)
SEPT. 30, June 30, Sept. 30,
2005 2005 2004
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Total assets $1,848,671 $1,875,844 $1,602,235
Savings deposits 1,447,590 1,478,335 1,258,463
Total loans, net 1,196,538 1,198,070 1,029,971
Loan loss reserves 15,150 15,188 13,822
Non-performing assets 6,632 8,815 4,827
Ratio of classified assets to total assets 0.36% 0.47% 0.30%
Allowance for loan losses as a % of gross loans 1.25% 1.25% 1.33%
Total shareholders' equity $115,079 $112,971 $106,198
Book value per share 20.43 20.09 19.03
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OTHER SELECTED DATA
THREE MONTHS ENDED
SEPTEMBER 30,
2005 2004
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Average yield earned on all interest-earning assets 4.90% 4.53%
Average rate paid on all interest-bearing liabilities 2.81% 2.65%
Average interest rate spread 2.09% 1.88%
Return on average assets 0.69% 0.65%
Return on average equity 11.27% 9.92%
Other expense to average assets 1.46% 1.41%
PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands, except share data)
SEPT. 30, June 30,
ASSETS 2005 2005
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Cash and noninterest-earning deposits $ 25,716 $ 26,040
Federal funds sold 65,000 81,000
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Cash and cash equivalents 90,716 107,040
Interest-earning deposits in other institutions 6,137 9,474
Investment securities available for sale (cost of
$27,456 at September 30 and $24,682 at June 30) 27,711 25,022
Investment securities held to maturity (fair value of
$449,562 at September 30 and $459,645 at June 30) 453,033 460,080
Loans, net of allowance of $15,150 at September 30
and $15,188 at June 30 1,196,538 1,198,070
Foreclosed real estate, net 1,045 1,654
Office properties and equipment, net 12,887 13,053
Goodwill 25,634 25,634
Intangible assets and deferred charges 7,248 7,487
Prepaid expenses and other assets 27,722 28,330
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Total assets $1,848,671 $1,875,844
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LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits $1,447,590 $1,478,335
Advances from Federal Home Loan Bank 227,084 217,141
Trust preferred securities 32,200 32,200
Other borrowings 17,694 23,116
Escrow for taxes and insurance 3,513 6,511
Other Liabilities 5,511 5,570
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Total Liabilities 1,733,592 1,762,873
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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 3,473 3,536
Treasury Stock at cost (1,102,903 shares in September
and 1,112,948 in June) (21,571) (21,680)
Accumulated Other Comprehensive Income 176 216
Retained earnings 126,266 124,164
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Total Shareholders' Equity 115,079 112,971
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Total Liabilities and Shareholders' Equity $1,848,671 $1,875,844
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Shareholders' Equity per share $20.43 $20.09
PARKVALE FINANCIAL CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar Amounts in Thousands, except per share data)
THREE MONTHS ENDED
SEPTEMBER 30,
2005 2004
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Interest Income:
Loans $16,341 $13,034
Investments 4,536 4,227
Federal funds sold 775 243
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Total interest income 21,652 17,504
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Interest Expense:
Savings deposits 8,725 7,161
Borrowings 2,899 2,359
Trust preferred securities 592 339
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Total interest expense 12,216 9,859
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Net interest income 9,436 7,645
Provision for loan losses 136 57
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Net interest income after
provision for losses 9,300 7,588
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Noninterest Income:
Service charges on deposit accounts 1,589 1,254
Other fees and service charges 339 321
Gain on sale of assets 0 14
Miscellaneous 355 314
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Total other income 2,283 1,903
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Noninterest Expense:
Compensation and employee benefits 3,698 3,226
Office occupancy 1,262 1,009
Marketing 139 83
FDIC insurance 50 47
Office supplies, telephone, and postage 451 355
Miscellaneous 1,240 964
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Total other expenses 6,840 5,684
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Income before income taxes 4,743 3,807
Income tax expense 1,515 1,179
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Net income $ 3,228 $ 2,628
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Net income per share:
Basic $0.57 $0.47
Diluted $0.57 $0.47
Dividends per share $0.20 $0.20