Parkvale Financial Corporation, Monroeville, PA Announces Increased Earnings for the Third Quarter of Fiscal 2011

MONROEVILLE, Pa. April 29, 2011 /PRNewswire/ -- Parkvale Financial Corporation (NASDAQ: PVSA) reported net income for the quarter ended March 31, 2011 of $1.9 million, representing a 37.3% increase compared to net income of $1.4 million for the quarter ended March 31, 2010. Income available to common shareholders, after the payment of dividends on preferred stock, was $1.6 million or $0.28 per diluted common share for the quarter ended March 31, 2011 compared to net income of $1.0 million or $0.18 per diluted common share for the quarter ended March 31, 2010. The $529,000 increase in net income for the March 31, 2011 quarter reflects a $789,000 decrease in non-cash debt security impairment charges and a $473,000 decrease in the provision for loan losses.  These factors were partially offset by a $315,000 decrease in net interest income and a $373,000 increase in income tax expense, reflecting a higher level of pre-tax income.  The decrease in net interest income is due to a decrease in net average interest-earning assets, offset by a 32 basis point increase in the average interest rate spread during the March 31, 2011 quarter.

For the nine month period ended March 31, 2011, net income was $6.0 million compared to net income of $4.7 million for the nine month period ended March 31, 2010. After giving effect to the dividends on the preferred stock, the income available to common shareholders was $4.8 million or $0.87 per diluted common share for the nine months ended March 31, 2011 compared to net income of $3.5 million or $0.64 per diluted common share for the nine months ended March 31, 2010. The $1.3 million increase in net income for the nine months ended March 31, 2011 reflects a $2.4 million decrease in non-cash debt security impairment charges, a $2.1 million decrease in the provision for loan losses and a $521,000 increase in other non-interest income.  These factors were partially offset by a $1.3 million increase in income tax expense, a $1.0 million decrease in gain on sale of assets, a $734,000 increase in FDIC insurance premiums and a $652,000 decrease in net interest income.  The increase in income tax expense reflects a higher level of pre-tax income for the nine months ended March 31, 2011.  The decrease in net interest income is due to a decrease in net average interest-earning assets, offset by a 23 basis point increase in the average interest rate spread during the nine months ended March 31, 2011.

Parkvale Financial Corporation is the parent of Parkvale Bank, which has 47 offices in the Tri-State area and assets of $1.8 billion at March 31, 2011.

(Condensed Consolidated Statement of Operations and selected financial data is attached.)

SOURCE Parkvale Financial Corporation