##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2008
 COMMISSION FILE NO: 0-17411
 PARKVALE FINANCIAL CORPORATION
  Pennsylvania
    
    25-1556590(State of incorporation)
    
    (I.R.S. Employer
Identification Number)
 4220 William Penn Highway, Monroeville, Pennsylvania 15146
   þ o
  Large accelerated filer
o
    
    Accelerated filer
þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




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##### 



PARKVALE FINANCIAL CORPORATION
  PagePart I. Financial InformationItem 1.Consolidated Statements of Financial Condition as of September 30, 2008 and June 30, 2008
    
    
    3Consolidated Statements of Operations for the three months ended September 30, 2008 and 2007
    
    
    4Consolidated Statements of Cash Flows for the three months ended September 30, 2008 and 2007
    
    
    5-6Consolidated Statements of Shareholders Equity for the three months ended September 30, 2008
    
    
    6Notes to Unaudited Interim Consolidated Financial Statements
    
    
    7-12Item 2.
Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    12-19Item 3.
Quantitative and Qualitative Disclosures about Market Risk
    
    
    20Item 4.
Controls and Procedures
    
    
    20Part II  Other Information
    
    
    20Signatures
    
    
    21Exhibits
    
    
    22-25EX-31.1EX-31.2EX-32.1
  2




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PARKVALE FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 September 30,
    
    
    June 30,2008
    
    
    2008(Unaudited)ASSETSCash and noninterest-earning deposits
    
    $
    19,576
    
    
    $
    18,692Federal funds sold
    
    
    89,000
    
    
    
    86,000Cash and cash equivalents
    
    
    108,576
    
    
    
    104,692Interest-earning deposits in other banks
    
    
    8,449
    
    
    
    7,252Investment securities available for sale (cost of
$31,183 at September 30 and $34,845 at June 30)
    
    
    27,222
    
    
    
    31,347Investment securities held to maturity (fair value
of $380,380 at September 30 and $383,853 at June 30)
    
    
    406,358
    
    
    
    413,028Loans, net of allowance of $15,052 at September 30
and $15,249 at June 30
    
    
    1,181,938
    
    
    
    1,201,665Foreclosed real estate, net
    
    
    5,353
    
    
    
    3,279Office properties and equipment, net
    
    
    18,617
    
    
    
    18,851Goodwill
    
    
    25,634
    
    
    
    25,634Intangible assets
    
    
    4,468
    
    
    
    4,695Prepaid expenses and other assets
    
    
    41,462
    
    
    
    40,949Total assets
    
    $
    1,828,077
    
    
    $
    1,851,392LIABILITIES AND SHAREHOLDERS EQUITYLIABILITIESDeposits
    
    $
    1,482,400
    
    
    $
    1,493,685Advances from Federal Home Loan Bank
    
    
    186,372
    
    
    
    191,430Other debt
    
    
    18,572
    
    
    
    21,965Advance payments from borrowers for taxes and insurance
    
    
    4,765
    
    
    
    7,754Other liabilities
    
    
    4,710
    
    
    
    4,927Total liabilities
    
    
    1,696,819
    
    
    
    1,719,761SHAREHOLDERS EQUITYPreferred stock ($1.00 par value; 5,000,000
shares authorized; 0 shares issued)
    
    
    
    
    
    
    Common stock ($1.00 par value; 10,000,000 shares
authorized; 6,734,894 shares issued)
    
    
    6,735
    
    
    
    6,735Additional paid in capital
    
    
    4,026
    
    
    
    4,026Treasury stock at cost (1,252,199 shares at September 30
and 1,253,199 at June 30)
    
    
    (26,597
    )
    
    
    (26,618
    )Accumulated other comprehensive income
    
    
    (2,515
    )
    
    
    (2,222
    )Retained earnings
    
    
    149,609
    
    
    
    149,710Total shareholders equity
    
    
    131,258
    
    
    
    131,631Total liabilities and shareholders equity
    
    $
    1,828,077
    
    
    $
    1,851,392
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PARKVALE FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
 Three months endedSeptember 30,2008
    
    
    2007Interest Income:Loans
    
    $
    17,582
    
    
    $
    18,398Investments
    
    
    5,735
    
    
    
    4,980Federal funds sold
    
    
    503
    
    
    
    1,436Total interest income
    
    
    23,820
    
    
    
    24,814Interest Expense:Deposits
    
    
    10,423
    
    
    
    11,961Borrowings
    
    
    2,500
    
    
    
    2,780Trust preferred securities
    
    
    
    
    
    
    164Total interest expense
    
    
    12,923
    
    
    
    14,905Net interest income
    
    
    10,897
    
    
    
    9,909Provision for loan losses
    
    
    1,027
    
    
    
    703Net interest income after
provision for loan losses
    
    
    9,870
    
    
    
    9,206Noninterest Income:Service charges on deposit accounts
    
    
    1,742
    
    
    
    1,777Other service charges and fees
    
    
    383
    
    
    
    287Net gain on sale (writedown) of assets
    
    
    (3,922
    )
    
    
    Other
    
    
    615
    
    
    
    683Total noninterest income
    
    
    (1,182
    )
    
    
    2,747Noninterest Expense:Compensation and employee benefits
    
    
    4,008
    
    
    
    4,135Office occupancy
    
    
    1,106
    
    
    
    1,128Marketing
    
    
    169
    
    
    
    173Office supplies, telephone and postage
    
    
    461
    
    
    
    457Other
    
    
    1,352
    
    
    
    1,317Total noninterest expense
    
    
    7,096
    
    
    
    7,210Income before income taxes
    
    
    1,592
    
    
    
    4,743Income tax expense
    
    
    487
    
    
    
    1,094Net income
    
    $
    1,105
    
    
    $
    3,649Net income per share:Basic
    
    $
    0.20
    
    
    $
    0.65Diluted
    
    $
    0.20
    
    
    $
    0.65
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PARKVALE FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 Three months endedSeptember 30,2008
    
    
    2007Cash flows from operating activities:Interest received
    
    $
    23,860
    
    
    $
    25,118Loan fees received (premiums paid)
    
    
    111
    
    
    
    31Disbursements of student loans
    
    
    (19
    )
    
    
    (478
    )Proceeds from sales of student loans
    
    
    
    
    
    
    630Other fees and commissions received
    
    
    2,451
    
    
    
    2,500Interest paid
    
    
    (13,000
    )
    
    
    (14,986
    )Cash paid to suppliers and others
    
    
    (10,168
    )
    
    
    (5,701
    )Income taxes paid
    
    
    (1,201
    )
    
    
    (2,543
    )Net cash provided by operating activities
    
    
    2,034
    
    
    
    4,571Cash flows from investing activities:Proceeds from sale of investment securities available for sale
    
    
    1,039
    
    
    
    Proceeds from maturities of investment securities
    
    
    23,312
    
    
    
    27,818Purchase of investment securities available for sale
    
    
    
    
    
    
    (1,028
    )Purchase of investment securities held to maturity
    
    
    (14,047
    )
    
    
    (39,360
    )Purchase of deposits in other banks
    
    
    (1,197
    )
    
    
    (886
    )Purchase of loans
    
    
    
    
    
    
    (14,236
    )Principal collected on loans
    
    
    50,699
    
    
    
    87,370Loans made to customers, net of loans in process
    
    
    (34,050
    )
    
    
    (61,313
    )Other
    
    
    (47
    )
    
    
    (1,011
    )Net cash provided by (used in) investing activities
    
    
    25,709
    
    
    
    (2,646
    )Cash flows from financing activities:Net (decrease) in checking and savings accounts
    
    
    (5,379
    )
    
    
    (9,913
    )Net (decrease) increase in certificates of deposit
    
    
    (5,907
    )
    
    
    15,498Repayment of FHLB advances
    
    
    (5,006
    )
    
    
    (6
    )Net (decrease) increase in other borrowings
    
    
    (3,393
    )
    
    
    1,664Decrease in borrowers advances for taxes and insurance
    
    
    (2,989
    )
    
    
    (3,331
    )Cash dividends paid
    
    
    (1,206
    )
    
    
    (1,236
    )Acquisition of treasury stock
    
    
    
    
    
    
    (2,494
    )Proceeds from exercise of stock options
    
    
    21
    
    
    
    21Net cash (used in) provided by financing activities
    
    
    (23,859
    )
    
    
    203Net increase in cash and cash equivalents
    
    
    3,884
    
    
    
    2,128Cash and cash equivalents at beginning of period
    
    
    104,692
    
    
    
    145,248Cash and cash equivalents at end of period
    
    $
    108,576
    
    
    $
    147,376
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Three months endedSeptember 30,2008
    
    
    2007Net income
    
    $
    1,105
    
    
    $
    3,649Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    508
    
    
    
    564Accretion and amortization of loan fees and discounts
    
    
    (717
    )
    
    
    96Loan fees collected and deferred
    
    
    (10
    )
    
    
    (134
    )Provision for loan losses
    
    
    1,027
    
    
    
    703Net writedown (gain) on sale of securities
    
    
    3,922
    
    
    
    Decrease in accrued interest receivable
    
    
    761
    
    
    
    252(Increase) decrease in other assets
    
    
    (1,293
    )
    
    
    233(Decrease) in accrued interest payable
    
    
    (26
    )
    
    
    (37
    )(Decrease) in other liabilities
    
    
    (3,243
    )
    
    
    (755
    )Total adjustments
    
    
    929
    
    
    
    922Net cash provided by operating activities
    
    $
    2,034
    
    
    $
    4,571
  PARKVALE FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
 AccumulatedAdditional
    
    
    
    
    
    Other
    
    
    
    
    
    TotalCommon
    
    Paid-in
    
    Treasury
    
    Comprehensive
    
    Retained
    
    ShareholdersStock
    
    Capital
    
    Stock
    
    Income
    
    Earnings
    
    EquityBalance, June 30, 2008
    
    $
    6,735
    
    
    $
    4,026
    
    
    
    ($26,618
    )
    
    
    ($2,222
    )
    
    $
    149,710
    
    
    $
    131,631Net income, three months ended
September 30, 2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,105
    
    
    
    1,105Accumulated other comprehensive
Income:Change in unrealized gain (loss)
on securities, net of deferred
tax benefit of ($1,601)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,783
    )Reclassification adjustment, net
of taxes of $1,432
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,490
    
    
    
    
    
    
    
    (293
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    812Dividends declared on common
stock at $0.22 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,206
    )
    
    
    (1,206
    )Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    21Balance, September 30, 2008
    
    $
    6,735
    
    
    $
    4,026
    
    
    
    ($26,597
    )
    
    
    ($2,515
    )
    
    $
    149,609
    
    
    $
    131,258
 6




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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 Statements of Operations
  Loans
  September 30, 2008
    
    June 30, 2008Mortgage loans:Residential:1-4 Family
    
    $
    812,896
    
    
    $
    828,516Multifamily
    
    
    29,016
    
    
    
    29,737Commercial
    
    
    111,267
    
    
    
    113,622Other
    
    
    15,177
    
    
    
    17,497968,356
    
    
    
    989,372Consumer loans
    
    
    180,285
    
    
    
    176,948Commercial business loans
    
    
    41,894
    
    
    
    43,643Loans on savings accounts
    
    
    5,494
    
    
    
    6,1471,196,029
    
    
    
    1,216,110Less: Loans in process
    
    
    115
    
    
    
    236Allowance for loan losses
    
    
    15,052
    
    
    
    15,249Unamortized premiums and deferred loan fees
    
    
    (1,076
    )
    
    
    (1,040
    )Loans, net
    
    $
    1,181,938
    
    
    $
    1,201,665
   2008
    
    
    2007Beginning balance
    
    $
    15,249
    
    
    $
    14,189Provision for losses  mortgage loans
    
    
    837
    
    
    
    603Provision for losses  consumer loans
    
    
    190
    
    
    
    50Provision for losses  commercial loans
    
    
    
    
    
    
    50Loans recovered
    
    
    7
    
    
    
    16Loans charged off
    
    
    (1,231
    )
    
    
    (89
    )Ending balance
    
    $
    15,052
    
    
    $
    14,819
 Comprehensive Income
  7




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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 Fair Value
  Level I -
    
    Quoted prices are available in the active markets for
identical assets or liabilities as of the reported date.Level II -
    
    Pricing inputs are other than quoted prices in active markets,
which are either directly or indirectly observable as of the
reported date. The nature of these assets and liabilities
include items for which quoted prices are available but traded
less frequently, and items that are fair valued using other
financial instruments, the parameters of which can be directly
observed.Level III -
    
    Valuations derived from valuation techniques in which one or
more significant inputs or significant value drivers are
unobservable.
   Level I
    
    Level II
    
    Level III
    
    TotalAssets:Available for sale securities
    
    $
    27,222
    
    
    
    
    
    
    
    
    
    
    $
    27,222OTTI  Held to maturity securities
    
    
    3,578
    
    
    
    
    
    
    
    
    
    
    
    3,578Student loans
    
    
    
    
    
    
    354
    
    
    
    
    
    
    
    354Liabilities:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
  8




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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
  Level I
    
    Level II
    
    Level III
    
    TotalAssets Measured on a
Nonrecurring Basis:Impaired loans
    
    
    
    
    
    
    
    
    
    
    1,265
    
    
    
    1,265
 Investments
   Held to Maturity Investments
 September 30, 2008
    
    
    June 30, 2008Amortized Cost
    
    
    Fair Value
    
    
    Amortized Cost
    
    
    Fair ValueU.S. Government and agency obligations
    
    
    66,413
    
    
    
    65,818
    
    
    
    71,411
    
    
    
    71,331Municipal obligations
    
    
    4,645
    
    
    
    4,693
    
    
    
    4,050
    
    
    
    4,105Corporate debt, including trust
preferred securities
    
    
    137,929
    
    
    
    115,329
    
    
    
    139,161
    
    
    
    115,492Mortgage-backed securities
    
    
    197,371
    
    
    
    194,540
    
    
    
    198,406
    
    
    
    192,925406,358
    
    
    
    380,380
    
    
    
    413,028
    
    
    
    383,853
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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 Corporate Debt.
    10




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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
  U.S. Government and Agency Obligations.
 Goodwill and market valuation:
  Earnings Per Share (EPS)
  2008
    
    
    2007Numerator for basic and diluted earnings per share:Net Income
    
    $
    1,105
    
    
    $
    3,649Denominator:Weighted average shares for basic earnings per share
    
    
    5,482,369
    
    
    
    5,573,343Effect of dilutive stock options
    
    
    3,606
    
    
    
    48,518Weighted average shares for dilutive earnings per share
    
    
    5,485,975
    
    
    
    5,621,861Net income per share:Basic
    
    $
    0.20
    
    
    $
    0.65Diluted
    
    $
    0.20
    
    
    $
    0.65Dividends per share
    
    $
    0.22
    
    
    $
    0.22
 New Accounting Pronouncements
   11




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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
     
  PARKVALE FINANCIAL CORPORATION
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
  Forward-Looking Statements:
   12




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Critical Accounting Policies, Judgments and Estimates:
   Balance Sheet Data:
 September 30,(Dollar amounts in thousands, except per share data)
    
    2008
    
    2007Total assets
    
    $
    1,828,077
    
    
    $
    1,846,756Loans, net
    
    
    1,181,938
    
    
    
    1,221,914Interest-earning deposits and federal funds sold
    
    
    97,449
    
    
    
    124,689Total investments
    
    
    433,580
    
    
    
    381,960Deposits
    
    
    1,482,400
    
    
    
    1,474,628FHLB advances
    
    
    186,372
    
    
    
    211,601Shareholders equity
    
    
    131,258
    
    
    
    129,273Book value per share
    
    $
    23.94
    
    
    $
    23.39
 13




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Statistical Profile:
 Three Months EndedSeptember 30, (1)2008
    
    2007Average yield earned on all
interest-earning assets
    
    
    5.47
    %
    
    
    5.77
    %Average rate paid on all
interest-bearing liabilities
    
    
    3.07
    %
    
    
    3.54
    %Average interest rate spread
    
    
    2.40
    %
    
    
    2.23
    %Net yield on average
interest-earning assets
    
    
    2.50
    %
    
    
    2.30
    %Other expenses to average assets
    
    
    1.53
    %
    
    
    1.58
    %Taxes to pre-tax income
    
    
    30.59
    %
    
    
    23.07
    %Return on average assets
    
    
    0.24
    %
    
    
    0.80
    %Return on average equity
    
    
    3.28
    %
    
    
    11.27
    %Average equity to average total assets
    
    
    7.27
    %
    
    
    7.08
    %
 At September 30,2008
    
    2007One year gap to total assets
    
    
    2.28
    %
    
    
    11.06
    %Intangibles to total equity
    
    
    22.93
    %
    
    
    23.99
    %Ratio of nonperforming assets to total assets
    
    
    0.90
    %
    
    
    0.47
    %Number of full-service offices
    
    
    48
    
    
    
    47
 
 (1)
    
    The applicable income and expense figures have been annualized in calculating the
percentages. Nonperforming Loans and Foreclosed Real Estate:
  9/30/08
    
    
    6/30/08
    
    
    12/31/07
    
    
    9/30/07Delinquent single-family mortgage loans
    
    $
    8,264
    
    
    $
    5,911
    
    
    $
    3,683
    
    
    $
    3,754Delinquent other loans
    
    
    1,567
    
    
    
    5,472
    
    
    
    2,057
    
    
    
    2,243Total nonperforming loans
    
    
    9,831
    
    
    
    11,383
    
    
    
    5,740
    
    
    
    5,997Total impaired loans
    
    
    1,265
    
    
    
    1,146
    
    
    
    1,054
    
    
    
    1,063Real estate owned, net
    
    
    5,353
    
    
    
    3,279
    
    
    
    2,563
    
    
    
    1,675Total
    
    $
    16,449
    
    
    $
    15,808
    
    
    $
    9,357
    
    
    $
    8,735
   14




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Allowance for Loan Losses
   Liquidity and Capital Resources:
  TARP Capital Purchase Program:
 16




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Tier 1
    
    Tier 1
    
    TotalCore
    
    Risk-Based
    
    Risk-Based(Dollars in 000s)
    
    Capital
    
    Capital
    
    CapitalEquity capital (1)
    
    $
    129,612
    
    
    $
    129,612
    
    
    $
    129,612Less non-allowable intangible assets
    
    
    (30,102
    )
    
    
    (30,102
    )
    
    
    (30,102
    )Plus permitted valuation allowances (2)
    
    
    
    
    
    
    
    
    
    
    13,246Total regulatory capital
    
    
    99,510
    
    
    
    99,510
    
    
    
    112,756Minimum required capital
    
    
    71,820
    
    
    
    42,351
    
    
    
    84,701Excess regulatory capital
    
    $
    27,690
    
    
    $
    57,159
    
    
    $
    28,055Adjusted total assets (1)
    
    $
    1,823,490
    
    
    $
    1,058,765
    
    
    $
    1,058,765Regulatory capital as a percentage
    
    
    5.46
    %
    
    
    9.40
    %
    
    
    10.65
    %Minimum capital required as a percentage
    
    
    4.00
    %
    
    
    4.00
    %
    
    
    8.00
    %Excess regulatory capital as a percentage
    
    
    1.46
    %
    
    
    5.40
    %
    
    
    2.65
    %Well capitalized requirement
    
    
    5.00
    %
    
    
    6.00
    %
    
    
    10.00
    %
 
 (1)
    
    Represents amounts for the consolidated Bank as reported to the Pennsylvania Department of
Banking and FDIC on Form 041 for the quarter ended September 30, 2008.(2)
    
    Limited to 1.25% of risk adjusted total assets.  Results of Operations  Comparison of Three Months Ended September 30, 2008 and 2007:
  17




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Interest Income:
  Interest Expense:
  Net Interest Income:
  18




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Provision for Loan Losses:
   Noninterest Income:
  Noninterest Expense:
  Income Tax Expense:
  Impact of Inflation and Changing Prices:
  19




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Item 3. Quantitative and Qualitative Disclosures About Market RiskQuantitative and qualitative disclosures about market risk are presented at June 30, 2008 in
Item 7A of Parkvale Financial Corporations Form 10-K, filed with the SEC on September 12,
2008. Management believes that there have been no material changes in Parkvales market
risk since June 30, 2008.
 
 Item 4. Controls and ProceduresDisclosure controls and procedures are monitored and supervised by Parkvales management,
including the CEO and CFO, regarding the effectiveness of the design and operation of
Parkvales disclosure controls and procedures. Parkvales management, including the CEO and
CFO, concluded that Parkvales disclosure controls and procedures were effective as of
September 30, 2008. There have been no changes in Parkvales internal controls or in other
factors that materially affected, or that are reasonably likely to materially affect,
Parkvales internal controls.
 
 PART II  OTHER INFORMATION
 Item 1. Legal Proceedings
    
    None
 Item 1A. Risk FactorsRisk Factor disclosures are presented at June 30, 2008 in Item 1A of the Corporations Form
10-K, filed with the SEC on September 12, 2008. Management believes that there have been no
material changes in Parkvales risk factors since June 30, 2008.
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds(a)
    
    The Corporation did not sell any equity securities during this reporting period that were not
registered under the Securities Act of 1933.(b)
    
    Not applicable(c)
    
    During the quarter ended September 30, 2008, Parkvale did not purchase treasury shares.
  Total Number ofShares Purchased as
    
    Maximum Number ofTotal Number
    
    Average
    
    Part of Publicly
    
    Shares that May Yet Beof Shares
    
    Price Paid
    
    Announced Plans
    
    Purchased Under thePeriod
    
    Purchased
    
    Per Share
    
    or Programs
    
    Plans or Programs (1)July 1-31, 2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    274,000August 1-31, 2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    274,000September 1-30, 2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    274,000
 
 (1)
    
    The repurchase program approved on June 19, 2008 is scheduled to expire on June 30, 2009. Item 3. Defaults Upon Senior Securities
    
    None
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Item 4. Submission of Matters to a Vote of Security Holders(a)
    
    The 2008 Annual Meeting of Shareholders of Parkvale Financial Corporation was held on
October 23, 2008. Of 5,482,695 shares eligible to vote, 93.3% or 5,114,764 shares were
voted by proxy.(b)
    
    The shareholders voted to re-elect the nominees for director, as described in the Proxy
Statement for the Annual Meeting. The results for the re-election of Fred P. Burger as
director were 4,796,795 shares in favor and 317,969 shares withheld. The results for the
re-election of Harry D. Reagan as director were 4,803,286 shares in favor and 311,478
shares withheld.(c)
    
    The recommendation by the Board of Directors to ratify the appointment of Parente
Randolph, LLC as the Corporations independent auditors, as described in the Proxy
Statement for the Annual Meeting, was approved with 4,884,359 shares in favor, 224,783
shares against and 5,622 shares abstaining.Item 5. Other Information NoneItem 6. Exhibits The following exhibits are filed here within:
 31.1
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of
the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.31.2
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of
the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.32.1
    
    Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
 
 SIGNATURES
  Parkvale Financial CorporationDATE: October 31, 2008
    By:
    /s/ Robert J. McCarthy, Jr.Robert J. McCarthy, Jr.President and
Chief Executive OfficerDATE: October 31, 2008
    By:
    /s/ Timothy G. RubritzTimothy G. RubritzVice President, Treasurer and

Chief Financial Officer 21