Parkvale Financial Corp. (PVSA, Financial) filed Quarterly Report for the period ended 2011-03-31.
Parkvale Financial Corp. has a market cap of $60.8 million; its shares were traded at around $10.88 with a P/E ratio of 10.1 and P/S ratio of 0.7. The dividend yield of Parkvale Financial Corp. stocks is 0.8%.
On January 7, 2009, the Corporation entered into swap arrangements with PNC to convert portions of the LIBOR floating interest rates to fixed interest rates for three and five years. Under the swap agreements after the effects of the add-on of 325 basis points to LIBOR, $5.0 million matures on December 31, 2011 at a rate of 4.92% to 6.92% and an additional $15.0 million matures on December 31, 2013 at a rate of 5.41% to 7.41%.
The Bank is required to maintain Tier 1 (Core) capital equal to at least 4% of the institutions adjusted total assets and Total (Supplementary) Risk-Based capital equal to at least 8% of its risk-weighted assets. At March 31, 2011, Parkvale Bank was in compliance with all applicable regulatory requirements, with Tier 1 Core, Tier 1 Risk-Based and Total Risk-Based ratios of 6.73%, 10.50% and 11.63%, respectively. The regulatory capital ratios for Parkvale Bank at March 31, 2011 are calculated as follows:
Parkvale had interest income of $16.0 million during the three months ended March 31, 2011 versus $18.6 million during the comparable period in 2010. The $2.7 million or 14.2% decrease is the result of a 35 basis point decrease in the average yield from 4.20% in the March 2010 quarter to 3.85% in the current quarter and a $112.0 million or 6.3% decrease in the average balance of interest-earning assets. Interest income from loans decreased $1.4 million or 9.7%, resulting from a decrease in the average outstanding loan balances of $34.0 million or 3.3% and a 35 basis point decrease in the average yield from 5.26% in 2010 to 4.91% in 2011. The decrease in the loan portfolio was primarily due to a decline in single-family residential mortgage loans. The average loan yield decreased due to lower prevailing rates on new loans along with ARM loans repricing down due to lower indices for periodic rate adjustments. Investment interest income decreased by $1.3 million or 27.1% due to a decrease of $59.4 million or 10.2% in the average balance and a 62 basis point decrease in the average yield from 3.28% in 2010 to 2.66% in 2011. Interest income earned on federal funds sold decreased by $11,000 or 12.5% from the 2010 quarter due to a decrease of $18.6 million or 13.0% in the average balance. The current Federal Reserve target rate is 0.25%. The weighted average yield on all interest-earning assets was 3.81% at March 31, 2011 and 4.11% at March 31, 2010.
Interest expense decreased $2.3 million or 25.3% from the 2010 to the 2011 quarter. The decrease was due to a 42 basis point decrease in the average rate paid on deposits and borrowings from 2.07% in 2010 to 1.65% in 2011 and a decrease in the average deposits and borrowings of $74.3 million or 4.3%. At March 31, 2011, the average rate payable on liabilities was 1.22% for deposits, 4.65% for borrowings, 5.14% for term debt and 1.61% for combined deposits, borrowings and debt.
Total noninterest expense decreased by $32,000 or 0.4% for the three months ended March 31, 2011 compared to the March 31, 2010 quarter, due to decreases of $155,000 or 4.1% of compensation and employee benefits expense, and $85,000 or 6.8% in office occupancy offset by an increase of $149,000 or 16.2% in FDIC insurance related to a higher premium rate charged by the FDIC and a $61,000 or 3.9% increase in other expenses. Annualized noninterest expense as a percentage of average assets was 1.74% for the quarter ended March 31, 2011 and 1.65% for the quarter ended March 31, 2010, reflecting lower levels of average assets during the March 2011 quarter.
Read the The complete Report
Parkvale Financial Corp. has a market cap of $60.8 million; its shares were traded at around $10.88 with a P/E ratio of 10.1 and P/S ratio of 0.7. The dividend yield of Parkvale Financial Corp. stocks is 0.8%.
Highlight of Business Operations:
Federal funds sold increased $20.4 million or 15.1% from June 30, 2010 to March 31, 2011. Investment securities held to maturity increased $40.8 million or 9.2% from June 30, 2010 to March 31, 2011, primarily due to purchases of agency mortgage-backed securities. Interest-earning deposits in other institutions increased $3.0 million or 378.8%. Loans, net of allowance, decreased $33.4 million or 3.2% from June 30, 2010 to March 31, 2011. The decrease in the loan portfolio was primarily due to a $27.6 million or 4.2% decline in one-to-four family residential loans and a decrease of $6.8 million or 19.4% in automobile loans. Deposits decreased $7.2 million or 0.5% from June 30, 2010 to March 31, 2011, FHLB advances decreased $35.1 million or 18.8% due to the maturity of six advances aggregating $35 million at costs of 4.12% to 6.05%, escrow for taxes and insurance decreased $751,000 or 10.0% and other debt decreased $940,000 or 6.8%. Parkvale Banks FHLB advance available maximum borrowing capacity is $706.6 million at March 31, 2011. If Parkvale were to experience a deposit decrease in excess of the available cash resources and cash equivalents, the FHLB and Federal Reserve could be utilized to fund a rapid decrease in deposits.On January 7, 2009, the Corporation entered into swap arrangements with PNC to convert portions of the LIBOR floating interest rates to fixed interest rates for three and five years. Under the swap agreements after the effects of the add-on of 325 basis points to LIBOR, $5.0 million matures on December 31, 2011 at a rate of 4.92% to 6.92% and an additional $15.0 million matures on December 31, 2013 at a rate of 5.41% to 7.41%.
The Bank is required to maintain Tier 1 (Core) capital equal to at least 4% of the institutions adjusted total assets and Total (Supplementary) Risk-Based capital equal to at least 8% of its risk-weighted assets. At March 31, 2011, Parkvale Bank was in compliance with all applicable regulatory requirements, with Tier 1 Core, Tier 1 Risk-Based and Total Risk-Based ratios of 6.73%, 10.50% and 11.63%, respectively. The regulatory capital ratios for Parkvale Bank at March 31, 2011 are calculated as follows:
Parkvale had interest income of $16.0 million during the three months ended March 31, 2011 versus $18.6 million during the comparable period in 2010. The $2.7 million or 14.2% decrease is the result of a 35 basis point decrease in the average yield from 4.20% in the March 2010 quarter to 3.85% in the current quarter and a $112.0 million or 6.3% decrease in the average balance of interest-earning assets. Interest income from loans decreased $1.4 million or 9.7%, resulting from a decrease in the average outstanding loan balances of $34.0 million or 3.3% and a 35 basis point decrease in the average yield from 5.26% in 2010 to 4.91% in 2011. The decrease in the loan portfolio was primarily due to a decline in single-family residential mortgage loans. The average loan yield decreased due to lower prevailing rates on new loans along with ARM loans repricing down due to lower indices for periodic rate adjustments. Investment interest income decreased by $1.3 million or 27.1% due to a decrease of $59.4 million or 10.2% in the average balance and a 62 basis point decrease in the average yield from 3.28% in 2010 to 2.66% in 2011. Interest income earned on federal funds sold decreased by $11,000 or 12.5% from the 2010 quarter due to a decrease of $18.6 million or 13.0% in the average balance. The current Federal Reserve target rate is 0.25%. The weighted average yield on all interest-earning assets was 3.81% at March 31, 2011 and 4.11% at March 31, 2010.
Interest expense decreased $2.3 million or 25.3% from the 2010 to the 2011 quarter. The decrease was due to a 42 basis point decrease in the average rate paid on deposits and borrowings from 2.07% in 2010 to 1.65% in 2011 and a decrease in the average deposits and borrowings of $74.3 million or 4.3%. At March 31, 2011, the average rate payable on liabilities was 1.22% for deposits, 4.65% for borrowings, 5.14% for term debt and 1.61% for combined deposits, borrowings and debt.
Total noninterest expense decreased by $32,000 or 0.4% for the three months ended March 31, 2011 compared to the March 31, 2010 quarter, due to decreases of $155,000 or 4.1% of compensation and employee benefits expense, and $85,000 or 6.8% in office occupancy offset by an increase of $149,000 or 16.2% in FDIC insurance related to a higher premium rate charged by the FDIC and a $61,000 or 3.9% increase in other expenses. Annualized noninterest expense as a percentage of average assets was 1.74% for the quarter ended March 31, 2011 and 1.65% for the quarter ended March 31, 2010, reflecting lower levels of average assets during the March 2011 quarter.
Read the The complete Report
