Exhibit 99.1
FOR IMMEDIATE RELEASE October 19, 2006
PARKVALE FINANCIAL CORPORATION ANNOUNCES INCREASED EARNINGS
FOR THE FIRST QUARTER OF FISCAL 2007
PARKVALE FINANCIAL CORPORATION MONROEVILLE, PA (NASDAQ: PVSA) REPORTED NET
INCOME FOR THE QUARTER ENDED SEPTEMBER 30, 2006, OF $3.5 MILLION OR $0.61 PER
DILUTED SHARE, UP 7.8%, COMPARED TO NET INCOME OF $3.2 MILLION OR $0.57 PER
DILUTED SHARE FOR THE QUARTER ENDED SEPTEMBER 30, 2005. The $253,000 increase in
net income for the September 2006 quarter reflects an increase in net interest
income of $155,000 and higher noninterest income of $345,000, offset by an
increase in related income tax expense. Net interest income increased to $9.6
million from $9.4 million for the prior period. Return on average equity was
11.17% for the September 2006 quarter.
Parkvale Financial Corporation is the parent of Parkvale Bank, which has 47
offices in the Tri-State area and assets of $1.9 billion at September 30, 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
email: timothy.rubritz@parkvale.com
PARKVALE FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands except per share data)
(Unaudited)
THREE MONTHS ENDED
SEPTEMBER 30,
2006 2005
-------- --------
Total interest income $ 23,929 $ 21,652
Total interest expense 14,338 12,216
-------- --------
Net interest income 9,591 9,436
Provision for loan losses 204 136
-------- --------
Net interest income after provision for losses 9,387 9,300
Gain (loss) on sale of assets (9) --
Noninterest income 2,637 2,283
Total noninterest expense 6,847 6,840
-------- --------
Income before income taxes 5,168 4,743
Income tax expense 1,687 1,515
-------- --------
Net income $ 3,481 $ 3,228
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Basic earnings per share $ 0.61 $ 0.57
Diluted earnings per share $ 0.61 $ 0.57
Dividend per share $ 0.20 $ 0.20
SELECTED FINANCIAL DATA
(IN THOUSANDS EXCEPT PER SHARE DATA)
SEPT. 30, June 30, Sept. 30,
2006 2006 2005
---------- ---------- ----------
Total assets $1,923,586 $1,858,715 $1,848,671
Savings deposits 1,519,881 1,451,764 1,447,590
Total loans, net 1,214,310 1,217,328 1,196,538
Loan loss reserves 14,957 14,907 15,150
Non-performing assets 6,994 4,564 6,632
Ratio of classified assets to total assets 0.36% 0.25% 0.36%
Allowance for loan losses as a % of gross loans 1.22% 1.21% 1.25%
Total shareholders' equity $ 125,218 $ 122,704 $ 115,079
Book value per share 22.05 21.64 20.43
OTHER SELECTED DATA
THREE MONTHS ENDED
SEPTEMBER 30,
2006 2005
----- -----
Average yield earned on all interest-earning assets 5.46% 4.90%
Average rate paid on all interest-bearing liabilities 3.34% 2.81%
Average interest rate spread 2.12% 2.09%
Return on average assets 0.75% 0.69%
Return on average equity 11.17% 11.27%
Other expense to average assets 1.48% 1.46%
</Table>
PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands, except share data)
SEPT. 30, June 30,
ASSETS 2006 2006
----------- -----------
Cash and noninterest-earning deposits $ 27,664 $ 25,676
Federal funds sold 180,000 104,000
----------- -----------
Cash and cash equivalents 207,664 129,676
Interest-earning deposits in other institutions 8,004 8,307
Investment securities available for sale (cost of
$27,361 at September 30 and $27,755 at June 30) 27,664 27,917
Investment securities held to maturity (fair value of
$384,476 at September 30 and $389,964 at June 30) 387,800 397,266
Loans, net of allowance of $14,957 at September 30
and $14,907 at June 30 1,214,310 1,217,328
Foreclosed real estate, net 1,707 975
Office properties and equipment, net 17,361 17,592
Goodwill 25,634 25,634
Intangible assets and deferred charges 6,293 6,532
Prepaid expenses and other assets 27,149 27,488
----------- -----------
Total assets $ 1,923,586 $ 1,858,715
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits $ 1,519,881 $ 1,451,764
Advances from Federal Home Loan Bank 216,827 221,885
Trust preferred securities 32,200 32,200
Other debt 20,413 17,528
Escrow for taxes and insurance 3,973 7,292
Other Liabilities 5,074 5,342
----------- -----------
Total Liabilities 1,798,368 1,736,011
----------- -----------
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 3,481 3,517
Treasury Stock at cost (1,055,152 shares in September
and 1,065,830 in June) (20,491) (20,620)
Accumulated Other Comprehensive Income 192 116
Retained earnings 135,301 132,956
----------- -----------
Total Shareholders' Equity 125,218 122,704
----------- -----------
Total Liabilities and Shareholders' Equity $ 1,923,586 $ 1,858,715
=========== ===========
PARKVALE FINANCIAL CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar Amounts in Thousands, except per share data)
THREE MONTHS ENDED
SEPTEMBER 30,
2006 2005
-------- --------
Interest Income:
Loans $ 17,676 $ 16,341
Investments 4,694 4,536
Federal funds sold 1,559 775
-------- --------
Total interest income 23,929 21,652
-------- --------
Interest Expense:
Savings deposits 10,675 8,725
Borrowings 2,910 2,899
Trust preferred securities 753 592
-------- --------
Total interest expense 14,338 12,216
-------- --------
Net interest income 9,591 9,436
Provision for loan losses 204 136
-------- --------
Net interest income after
provision for losses 9,387 9,300
-------- --------
Noninterest Income:
Service charges on deposit accounts 1,815 1,589
Other fees and service charges 330 339
Gain (loss) on sale of assets (9) 0
Other 492 355
-------- --------
Total noninterest income 2,628 2,283
-------- --------
Noninterest Expense:
Compensation and employee benefits 3,763 3,698
Office occupancy 1,185 1,262
Marketing 122 139
FDIC insurance 45 50
Office supplies, telephone, and postage 479 451
Other 1,253 1,240
-------- --------
Total noninterest expense 6,847 6,840
-------- --------
Income before income taxes 5,168 4,743
Income tax expense 1,687 1,515
-------- --------
Net income $ 3,481 $ 3,228
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