Parkvale Financial Corporation Announces Earnings for the First Quarter of Fiscal 2010

• Press Release
• Source: Parkvale Financial Corporation
• On 10:12 am EDT, Thursday October 22, 2009

MONROEVILLE, Pa., Oct. 22 /PRNewswire-FirstCall/ -- Parkvale Financial Corporation Monroeville, PA (Nasdaq: PVSA - News) reported net income for the quarter ended September 30, 2009 of $855,000 or $0.08 per diluted common share compared to net income of $1.1 million or $0.20 per diluted share for the quarter ended September 30, 2008. The $250,000 decrease in net income for the September 2009 quarter reflects a decrease in net interest income by $1.6 million, an increase in the provision for loan losses by $1.3 million and higher FDIC insurance premiums of $507,000, which were partially offset by lower net writedowns on investment securities by $2.3 million and related tax benefits of $1.0 million. Net interest income decreased to $9.3 million for the quarter ended September 30, 2009 from $10.9 million for the September 2008 quarter primarily due to lower yields on investments and loans. After giving effect to the dividend on the preferred stock, the income applicable to common shareholders was $458,000 in the quarter ended September 30, 2009.

Parkvale Financial Corporation is the parent of Parkvale Bank, which has 48 offices in the Tri-State area and assets of $1.9 billion at September 30, 2009.

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

                        PARKVALE FINANCIAL CORPORATION
                CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                     (In Thousands except per share data)
                                 (Unaudited)
                                                      Three months ended
                                                         September 30,
                                                        2009        2008
                                                        ----        ----
    Total interest income                            $20,022     $23,820
    Total interest expense                            10,704      12,923
                                                      ------      ------
          Net interest income                          9,318      10,897
    Provision for loan losses                          2,289       1,027
                                                       -----       -----
          Net interest income after provision for
           losses                                      7,029       9,870
    Net gain on sale and (writedown) of securities    (1,659)     (3,922)
    Other noninterest income                           2,562       2,740
    Total noninterest expense                          7,592       7,096
                                                       -----       -----
    Income before income taxes                           340       1,592
    Income tax (benefit) expense                        (515)        487
                                                        ----         ---
    Net income                                           855       1,105
    Less: Preferred stock dividend                       397           -
                                                         ---         ---
    Income to common shareholders                       $458      $1,105
                                                        ====      ======

    Net income per basic common share                  $0.08       $0.20
    Net income per diluted common share                $0.08       $0.20
    Cash dividends declared per common share           $0.05       $0.22


                           SELECTED FINANCIAL DATA
                     (In Thousands except per share data)
                                        Sept. 30,    June 30,   Sept. 30,
                                            2009        2009        2008
                                            ----        ----        ----
    Total assets                      $1,903,314  $1,907,106  $1,828,077
    Deposits                           1,518,661   1,511,248   1,482,400
    Total loans, net of allowance      1,071,611   1,108,936   1,181,938
    Loan loss allowance                   19,484      17,960      15,052
    Nonperforming loans and
     foreclosed real estate               40,879      33,641      16,449
           Ratio to total assets            2.15%       1.76%       0.90%
    Allowance for loan losses as a
     % of gross loans                       1.79%       1.60%       1.26%
    Total shareholders' equity          $151,110    $150,760    $131,258
    Book value per share                   21.99       21.92       23.94


                              OTHER SELECTED DATA
                                                       Three months ended
                                                          September 30,
                                                        2009        2008
                                                        ----        ----
    Average yield earned on all interest-earning
     assets                                             4.45%       5.47%
    Average rate paid on all  interest-bearing
     liabilities                                        2.44%       3.07%
    Average interest rate spread                        2.01%       2.40%
    Net yield on average interest-earning assets        2.07%       2.50%
    Return on average assets                            0.18%       0.24%
    Return on average equity                            2.26%       3.28%
    Other noninterest expenses to average assets        1.59%       1.53%

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