Exhibit 99.1
FOR IMMEDIATE RELEASE July 20, 2006
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PARKVALE ANNOUNCES INCREASED EARNINGS FOR FISCAL YEAR 2006
PARKVALE FINANCIAL CORPORATION, MONROEVILLE, PA (NASDAQ: PVSA) REPORTED
NET INCOME FOR THE FISCAL YEAR ENDED JUNE 30, 2006 OF $13.3 MILLION OR $2.33 PER
DILUTED SHARE, UP 14.1% COMPARED TO NET INCOME OF $11.7 MILLION OR $2.06 PER
DILUTED SHARE FOR THE FISCAL YEAR ENDED JUNE 30, 2005. The $1.6 million increase
in fiscal year 2006 net income reflects increases of $3.8 million in net
interest income and $1.2 million in non-interest income offset by increases of
$2.0 million in non-interest expense, $0.9 million in income tax expense and
$0.5 million in provision for loan losses. Net interest income for the twelve
months ended June 30, 2006 increased to $38.6 million from $34.8 million for the
twelve months ended June 30, 2005. Return on average equity was 11.26% for the
fiscal year ended June 30, 2006, up from 10.70% for the fiscal year ended June
30, 2005.
PARKVALE FINANCIAL CORPORATION REPORTED NET INCOME FOR THE QUARTER
ENDED JUNE 30, 2006 OF $3.5 MILLION OR $0.60 PER DILUTED SHARE, UP 8.0%,
COMPARED TO NET INCOME OF $3.2 MILLION OR $0.57 PER DILUTED SHARE FOR THE
QUARTER ENDED JUNE 30, 2005. The $257,000 increase in net income for the June
2006 quarter reflects increases of $99,000 in net interest income, $269,000 in
non-interest income and decreases of $193,000 in non-interest expense, which
were offset by increases of $188,000 in the provision for loan losses and
$116,000 in income taxes. Return on average equity was 11.35% for the three
months ended June 30, 2006 compared to 11.42% for the quarter ended in June
2005.
Parkvale Financial Corporation is the parent of Parkvale Bank, which
has 47 offices in the Greater Pittsburgh metropolitan area, eastern Ohio and
northern West Virginia. The Bank had assets of $1.9 billion at June 30, 2006.
Parkvale Financial Corporation is now traded on the NASDAQ Global Select Market.
(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
email: timothy.rubritz@parkvale.com
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,
2006 2005 2006 2005
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Net interest income $9,829 $9,730 $38,598 $34,757
Provision for loan losses 274 86 736 229
Net gain on sale of assets and securities 21 0 128 27
Other non-interest income 2,495 2,247 9,287 8,149
Other non-interest expense 6,923 7,116 27,640 25,597
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Income before income taxes 5,148 4,775 19,637 17,107
Income tax expense 1,680 1,564 6,325 5,440
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Net income $3,468 $3,211 $13,312 $11,667
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Net income per diluted share $0.60 $0.57 $2.33 $2.06
Dividend per share $0.20 $0.20 $0.80 $0.80
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SELECTED FINANCIAL DATA
(DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA)
JUNE 30,
2006 2005
-------------------------------
Total assets $1,858,715 $1,875,844
Savings deposits 1,451,764 1,478,335
Loans, net of allowance 1,217,328 1,198,070
Loan loss allowance 14,907 15,188
Nonperforming loans and foreclosed real estate 4,564 8,815
Ratio of nonperforming assets to total assets 0.25% 0.47%
Allowance for loan losses as a % of gross loans 1.21 1.25
Total shareholders' equity $122,704 $112,971
Book value per share $21.64 $20.09
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OTHER SELECTED DATA
THREE MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
2006 2005 2006 2005
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Average interest rate spread 2.19% 2.14% 2.15% 2.02%
Return on average assets 0.75 0.68 0.72 0.67
Return on average equity 11.35 11.42 11.26 10.70
Other non-interest expenses to average assets 1.49 1.51 1.49 1.46
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PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar amounts in thousands except share data)
JUNE 30,
Assets 2006 2005
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Cash and noninterest-earning deposits $25,676 $26,040
Federal funds sold 104,000 81,000
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Cash and cash equivalents 129,676 107,040
Interest-earning deposits in other banks 8,307 9,474
Investment securities available for sale (cost of $27,755 in 2006
and $24,682 in 2005) 27,917 25,022
Investment securities held to maturity (fair value of $389,964
in 2006 and $459,645 in 2005) 397,266 460,080
Loans, net of allowance of $14,907 in 2006 and $15,188 in 2005 1,217,328 1,198,070
Foreclosed real estate, net 975 1,654
Office properties and equipment, net 17,592 13,053
Goodwill 25,634 25,634
Intangible assets and deferred charges 6,532 7,487
Prepaid expenses and other assets 27,488 28,330
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Total assets $1,858,715 $1,875,844
Liabilities and Shareholders' Equity
Liabilities
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Deposits $1,451,764 $1,478,335
Advances from Federal Home Loan Bank 221,885 217,141
Other debt 17,528 23,116
Trust preferred securities 32,200 32,200
Advance payments from borrowers for taxes and insurance 7,292 6,511
Other liabilities 5,342 5,570
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Total liabilities 1,736,011 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 3,517 3,536
Treasury stock at cost - 1,065,830 shares in 2006 and 1,112,948 shares in 2005 (20,620) (21,680)
Accumulated other comprehensive income 116 216
Retained earnings 132,956 124,164
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Total shareholders' equity 122,704 112,971
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Total liabilities and shareholders' equity $1,858,715 $1,875,844
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PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands except per share data)
YEARS ENDED JUNE 30,
2006 2005 2004
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Interest Income:
Loans $67,989 $58,259 $56,339
Investments 18,089 17,486 12,553
Federal funds sold 3,497 1,777 1,151
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Total interest income 89,575 77,522 70,043
Interest Expense:
Deposits 36,597 30,837 31,348
Borrowings 11,786 10,159 8,948
Trust preferred securities 2,594 1,769 1,223
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Total interest expense 50,977 42,765 41,519
===========================================================================================================
Net interest income 38,598 34,757 28,524
Provision for loan losses 736 229 (106)
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Net interest income after provision for loan losses 37,862 34,528 28,630
Noninterest Income:
Service charges on deposit accounts 6,380 5,702 4,474
Other service charges and fees 1,319 1,178 1,070
Net gain on sale of assets and securities 128 27 1,055
Miscellaneous 1,588 1,269 1,469
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Total noninterest income 9,415 8,176 8,068
Noninterest Expense:
Compensation and employee benefits 14,972 13,872 12,328
Office occupancy 4,999 4,611 4,197
Marketing 559 378 381
FDIC insurance 191 194 200
Office supplies, telephone and postage 1,868 1,791 1,582
Miscellaneous 5,051 4,751 3,658
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Total noninterest expense 27,640 25,597 22,346
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Income before income tax expense 19,637 17,107 14,352
Income tax expense 6,325 5,440 4,336
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NET INCOME $13,312 $11,667 $10,016
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NET INCOME PER SHARE:
Basic $2.36 $2.08 $1.80
Diluted $2.33 $2.06 $1.77
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