Parkvale Financial Corporation, Monroeville, PA Announces Earnings for the Second Quarter of Fiscal 2011: EPS of $.26

Parkvale Financial Corporation PVSA reported net income for the quarter ended December 31, 2010 of $1.8 million compared to net income of $2.4 million for the quarter ended December 31, 2009. Income available to common shareholders, after the payment of dividends on preferred stock, was $1.4 million or $0.26 per diluted common share for the quarter ended December 31, 2010 compared to $2.0 million or $0.38 per diluted common share for the quarter ended December 31, 2009. The $584,000 decrease in net income for the December 31, 2010 quarter is primarily due to a $909,000 decrease in gain on sale of assets, a $338,000 increase in non-interest expense and a $164,000 increase in non-cash debt security impairment charges. These factors were partially offset by a $383,000 decrease in the provision for loan losses and a $239,000 decrease in income tax expense, reflecting a lower level of pre-tax income. The increase in non-interest expense for the quarter was primarily due to a $259,000 increase in FDIC insurance premiums. Net interest income increased by $122,000 due to a 16 basis point increase in the average interest rate spread during the December 31, 2010 quarter.