Pittsburgh Based PNC Financial Services Group reported net income of $559 million in the third quarter of this year, which amounts to $1.00 per diluted common share. That compares to 70 cents in the same period last year. The number smashed analysts’ expectations. For the first nine months of 2009, the company earned net income of $1.30 billion, or $2.17 per diluted common share. The fifth largest bank by deposits reports continued good results from the acquisition of National City and CEO Jim Rohr says he expects to see further growth I those new markets. The required divestiture of 61 branches including $4.1 billion of deposits and $.8 billion of loans was completed September 4, 2009. PNC Stock rose at the opening bell. PNC will rebrand its mortgage loan division later this year and Rohr says the company hopes to see gains in the residential mortgage business. The company had to set aside nearly a billion dollars in the quarter to cover bad loans. PNC has posted profits in all but one quarter since the economic slowdown and Rohr is quick to point out that loss was due primarily to the acquisition of National City.
Also this morning Indiana PA based First Commonwealth reported a third quarter net loss of $3.0 million, or $.04 per diluted share compared to net income of $10.2 million, or $0.14 per diluted share in the third quarter of 2008. The decrease comes as a result of a $17.5 million increase in the provision for credit losses.
Monroeville based Parkvale Financial Corporation also reported it third Quarter numbers today. The company says it generated net income for the $855,000 or $0.08 per diluted common share. That is well below the $1.1 million or $0.20 per diluted share for the quarter ended September 30, 2008. The $250,000 decrease in net income 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.
Those were partially offset by lower net writedowns on investment securities by $2.3 million and related tax benefits of $1.0 million.