EXHIBIT 99.1
For Immediate Release
April 20, 2006
PARKVALE FINANCIAL ANNOUNCES AN INCREASE IN EARNINGS FOR THE THIRD
QUARTER OF FISCAL 2006
PARKVALE FINANCIAL CORPORATION, MONROEVILLE, PA (NASDAQ: PVSA) REPORTED
NET INCOME FOR THE NINE MONTHS ENDED MARCH 31, 2006 WAS $9.8 MILLION OR $1.73
PER DILUTED SHARE, UP 16.1% ON A PER SHARE BASIS, COMPARED TO NET INCOME OF $8.5
MILLION OR $1.49 PER DILUTED SHARE FOR THE NINE MONTHS ENDED MARCH 31, 2005. The
$1.4 million increase, or 16.4% in net income for the March 2006 nine-month
period reflects increases of $3.7 million in net interest income and $970,000 of
non-interest income partially offset by increases of $2.2 million in
non-interest expense and $769,000 in income tax expense. Net interest income for
the nine months ended March 31, 2006 increased to $28.8 million from $25.0
million for the nine months ended March 31, 2005. Return on average equity was
11.22% for the nine months ended March 2006, up from 10.45% for the nine months
ended March 2005.
NET INCOME FOR THE QUARTER ENDED MARCH 31, 2006 OF $3.4 MILLION OR
$0.59 PER DILUTED SHARE, WAS UP 9.3% ON A PER SHARE BASIS, COMPARED TO NET
INCOME OF $3.1 MILLION OR $0.54 PER DILUTED SHARE FOR THE QUARTER ENDED MARCH
31, 2005. The $260,000 increase in net income for the March 2006 quarter
reflects a $160,000 increase in net interest income, a $215,000 increase in
non-interest income, and a $174,000 decrease in non-interest expense, which were
partially offset by increases in the provision for loan losses and income taxes.
Return on average equity was 11.29% for the March 2006 quarter compared to
11.31% for the March 2005 quarter.
Parkvale Financial Corporation is the parent of Parkvale Bank, which
has 47 offices in the Tri State area. The Bank had assets of $1.9 billion at
March 31, 2006.
(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,
2006 2005 2006 2005
------------------------------------------------------
Total interest income $22,606 $21,039 $66,261 $56,125
Total interest expense 12,733 11,326 37,492 31,098
------------------------------------------------------
Net interest income 9,873 9,713 28,769 25,027
Provision for loan losses 180 32 462 143
------------------------------------------------------
Net interest income after provision for losses 9,693 9,681 28,307 24,884
Gain on sale of assets 83 13 107 27
Total non-interest income 2,284 2,139 6,792 5,902
Total non-interest expense 7,087 7,261 20,717 18,481
------------------------------------------------------
Income before income taxes 4,973 4,572 14,489 12,332
Income tax expense 1,597 1,456 4,645 3,876
------------------------------------------------------
Net income $3,376 $3,116 $9,844 $8,456
======================================================
Basic earnings per share $0.60 $0.55 $1.75 $1.51
Diluted earnings per share $0.59 $0.54 $1.73 $1.49
Cash dividends per share $0.20 $0.20 $0.60 $0.60
- --------------------------------------------------------------------------------
SELECTED FINANCIAL DATA
(IN THOUSANDS EXCEPT PER SHARE DATA)
MARCH 31, June 30, March 31,
2006 2005 2005
-----------------------------------------
Total assets $1,852,022 $1,875,844 $1,891,547
Savings deposits 1,443,284 1,478,335 1,512,416
Total loans, net 1,228,776 1,198,070 1,205,102
Loan loss reserves 15,026 15,188 15,517
Non-performing assets 5,177 8,815 8,102
Ratio of classified assets to total assets 0.28% 0.47% 0.43%
Allowance for loan losses as a % of gross loans 1.21% 1.25% 1.27%
Total stockholders' equity $120,382 $112,971 $110,855
Book value per share 21.24 20.09 19.73
- --------------------------------------------------------------------------------
OTHER SELECTED DATA
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
2006 2005 2006 2005
------------------------------------------------------
Average yield earned on all interest-earning assets 5.18% 4.67% 5.04% 4.59%
Average rate paid on all interest-earning liabilities 2.97% 2.55% 2.90% 2.61%
Average interest rate spread 2.21% 2.12% 2.14% 1.98%
Return on average assets 0.73% 0.66% 0.71% 0.66%
Return on average equity 11.29% 11.31% 11.22% 10.45%
Non-interest expense to average assets 1.54% 1.53% 1.49% 1.44%
2
PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
MARCH 31, June 30,
2006 2005
----------------------------
ASSETS
Cash and noninterest-earning deposits $ 25,892 $ 26,040
Federal funds sold 84,000 81,000
------- ------
Cash and cash equivalents 109,892 107,040
Interest-earning deposits in other banks 4,613 9,474
Investment securities available for sale (cost of
$26,456 at March 31 and $24,682 at June 30) 26,653 25,022
Investment securities held to maturity (fair value
$399,029 at March 31 and $459,645 at June 30) 405,062 460,080
Loans, net of allowance of $15,026 at March 31
and $15,188 at June 30 1,228,776 1,198,070
Foreclosed real estate, net 1,049 1,654
Office properties and equipment, net 17,259 13,053
Goodwill 25,634 25,634
Intangible assets and deferred charges 6,771 7,487
Prepaid expenses and other assets 26,313 28,330
----------------------------
Total Assets $1,852,022 $1,875,844
============================
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits $1,443,284 $1,478,335
Advances from Federal Home Loan Bank 226,941 217,141
Trust preferred securities 32,200 32,200
Other debt 16,728 23,116
Escrow for taxes and insurance 6,170 5,570
Other liabilities 6,317 6,511
----------------------------
Total Liabilities 1,731,640 1,762,873
----------------------------
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 3,523 3,536
Treasury Stock at cost (1,067,277 shares in March
and 1,112,948 shares in June) (20,640) (21,680)
Accumulated other comprehensive income 142 216
Retained earnings 130,622 124,164
----------------------------
Total Shareholders' Equity 120,382 112,971
----------------------------
Total Liabilities and Shareholders' Equity $1,852,022 $1,875,844
============================
Shareholders' Equity per share $ 21.24 $ 20.09
3
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,
2006 2005 2006 2005
-------------------------------------------------------
Interest Income:
Loans $17,289 $16,163 $50,395 $42,138
Investments 4,412 4,426 13,485 12,917
Federal funds sold 905 450 2,381 1,070
-------------------------------------------------------
Total interest income 22,606 21,039 66,261 56,125
-------------------------------------------------------
Interest Expense:
Savings deposits 9,124 8,206 26,770 22,431
Borrowings 2,945 2,608 8,834 7,453
Trust preferred securities 664 512 1,888 1,214
-------------------------------------------------------
Total interest expense 12,733 11,326 37,492 31,098
-------------------------------------------------------
Net interest income 9,873 9,713 28,769 25,027
Provision for loan losses 180 32 462 143
-------------------------------------------------------
Net interest income after
provision for losses 9,693 9,681 28,307 24,884
-------------------------------------------------------
Noninterest Income:
Service charges on deposit accounts 1,561 1,456 4,726 4,146
Other fees and service charges 307 370 953 860
Gain on sale of assets 83 13 107 27
Miscellaneous 416 313 1,113 896
-------------------------------------------------------
Total other income 2,367 2,152 6,899 5,929
-------------------------------------------------------
Noninterest Expenses:
Compensation and employee benefits 3,841 3,812 11,206 10,091
Office occupancy 1,226 1,329 3,773 3,318
Marketing 125 71 410 256
FDIC insurance 48 47 146 140
Office supplies, telephone, and postage 486 538 1,393 1,292
Miscellaneous 1,361 1,464 3,789 3,384
-------------------------------------------------------
Total other expense 7,087 7,261 20,717 18,481
-------------------------------------------------------
Income before income taxes 4,973 4,572 14,489 12,332
Income tax expense 1,597 1,456 4,645 3,876
-------------------------------------------------------
Net income $3,376 $3,116 $9,844 $8,456
=======================================================
Basic earnings per share $0.60 $0.55 $1.75 $1.51
Diluted earnings per share $0.59 $0.54 $1.73 $1.49
Dividends per share $0.20 $0.20 $0.60 $0.60
4