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 MARCH 31, 2010
 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
 o o
  Large accelerated filer o
Accelerated filer þ
Non-accelerated filer o
(Do not check if a smaller reporting company)Smaller reporting company o o þ




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##### 



PARKVALE FINANCIAL CORPORATION
  PagePart I. Financial InformationItem 1.Consolidated Statements of Financial Condition as of March 31, 2010 and June 30, 2009
    
    
    3Consolidated Statements of Operations for the three months and nine months ended March 31, 2010 and 2009
    
    
    4Consolidated Statements of Cash Flows for the nine months ended March 31, 2010 and 2009
    
    
    5-6Consolidated Statements of Shareholders Equity for the nine months ended March 31, 2010
    
    
    6Notes to Unaudited Interim Consolidated Financial Statements
    
    
    7-21Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    21-33Item 3.Quantitative and Qualitative Disclosures about Market Risk
    
    
    34Item 4.Controls and Procedures
    
    
    34Part II  Other Information
    
    
    34Signatures
    
    
    35Exhibits
    
    
    36-38
 2




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##### 



PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 March 31,
    
    June 30,2010
    
    2009(Unaudited)ASSETSCash and noninterest-earning deposits
    
    $
    21,204
    
    
    $
    15,381Federal funds sold
    
    
    152,040
    
    
    
    150,510Cash and cash equivalents
    
    
    173,244
    
    
    
    165,891Interest-earning deposits in other banks
    
    
    581
    
    
    
    3,899Investment securities available for sale (cost of
$20,331 at March 31 and $22,041 at June 30)
    
    
    20,415
    
    
    
    23,505Investment securities held to maturity (fair value
of $505,599 at March 31 and $438,745 at June 30)
    
    
    551,080
    
    
    
    504,029Loans, net of allowance of $17,657 at March 31
and $17,960 at June 30
    
    
    1,033,004
    
    
    
    1,108,936Foreclosed real estate, net
    
    
    8,944
    
    
    
    5,706Office properties and equipment, net
    
    
    17,494
    
    
    
    18,073Goodwill
    
    
    25,634
    
    
    
    25,634Intangible assets
    
    
    3,104
    
    
    
    3,786Prepaid expenses and other assets
    
    
    62,725
    
    
    
    47,647Total assets
    
    $
    1,896,225
    
    
    $
    1,907,106LIABILITIES AND SHAREHOLDERS EQUITYLIABILITIESDeposits
    
    $
    1,513,442
    
    
    $
    1,511,248Advances from Federal Home Loan Bank
    
    
    186,030
    
    
    
    186,202Term debt
    
    
    24,375
    
    
    
    25,000Other debt
    
    
    14,578
    
    
    
    21,261Advance payments from borrowers for taxes and insurance
    
    
    6,599
    
    
    
    7,359Other liabilities
    
    
    2,246
    
    
    
    5,276Total liabilities
    
    
    1,747,270
    
    
    
    1,756,346SHAREHOLDERS EQUITYPreferred stock ($1.00 par value, liquidation preference $1,000;
5,000,000 shares authorized; 31,762 shares issued)
    
    
    31,762
    
    
    
    31,762Common stock ($1.00 par value; 10,000,000 shares
authorized; 6,734,894 shares issued)
    
    
    6,735
    
    
    
    6,735Additional paid in capital
    
    
    2,734
    
    
    
    4,116Treasury stock at cost (1,205,683 shares at March 31
and 1,307,199 at June 30)
    
    
    (25,193
    )
    
    
    (27,314
    )Accumulated other comprehensive loss
    
    
    (5,238
    )
    
    
    (10
    )Retained earnings
    
    
    138,155
    
    
    
    135,471Total shareholders equity
    
    
    148,955
    
    
    
    150,760Total liabilities and shareholders equity
    
    $
    1,896,255
    
    
    $
    1,907,106
 3




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##### 



PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
 Three months ended
    
    
    Nine months endedMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Interest income:Loans
    
    $
    13,745
    
    
    $
    16,192
    
    
    $
    42,768
    
    
    $
    50,989Investments
    
    
    4,799
    
    
    
    5,780
    
    
    
    14,895
    
    
    
    17,376Federal funds sold
    
    
    88
    
    
    
    56
    
    
    
    291
    
    
    
    618Total interest income
    
    
    18,632
    
    
    
    22,028
    
    
    
    57,954
    
    
    
    68,983Interest expense:Deposits
    
    
    6,464
    
    
    
    9,366
    
    
    
    21,843
    
    
    
    29,832Borrowings
    
    
    2,315
    
    
    
    2,702
    
    
    
    7,081
    
    
    
    7,672Term Debt
    
    
    439
    
    
    
    
    
    
    
    1,208
    
    
    
    Total interest expense
    
    
    9,218
    
    
    
    12,068
    
    
    
    30,132
    
    
    
    37,504Net interest income
    
    
    9,414
    
    
    
    9,960
    
    
    
    27,822
    
    
    
    31,479Provision for loan losses
    
    
    1,164
    
    
    
    1,826
    
    
    
    4,851
    
    
    
    4,982Net interest income after
provision for losses
    
    
    8,250
    
    
    
    8,134
    
    
    
    22,971
    
    
    
    26,497Noninterest Income:Other-than-temporary impairment losses
recognized in earnings
    
    
    (6,536
    )
    
    
    (20,909
    )
    
    
    (12,537
    )
    
    
    (25,909
    )Non-credit related losses recognized in
other comprehensive income
    
    
    5,492
    
    
    
    
    
    
    
    7,950
    
    
    
    Net impairment losses recognized in earnings
    
    
    (1,044
    )
    
    
    (20,909
    )
    
    
    (4,587
    )
    
    
    (25,909
    )Service charges on deposit accounts
    
    
    1,487
    
    
    
    1,503
    
    
    
    4,754
    
    
    
    4,895Other fees and service charges
    
    
    376
    
    
    
    384
    
    
    
    1,102
    
    
    
    1,094Net gain on sale of assets
    
    
    167
    
    
    
    167
    
    
    
    2,372
    
    
    
    185Other
    
    
    521
    
    
    
    660
    
    
    
    1,575
    
    
    
    1,911Total noninterest income
    
    
    1,507
    
    
    
    (18,195
    )
    
    
    5,216
    
    
    
    (17,824
    )Noninterest Expenses:Compensation and employee benefits
    
    
    3,804
    
    
    
    3,974
    
    
    
    11,236
    
    
    
    12,074Office occupancy
    
    
    1,243
    
    
    
    1,278
    
    
    
    3,449
    
    
    
    3,479Marketing
    
    
    78
    
    
    
    123
    
    
    
    238
    
    
    
    363FDIC insurance
    
    
    769
    
    
    
    65
    
    
    
    1,982
    
    
    
    188Office supplies, telephone and postage
    
    
    479
    
    
    
    486
    
    
    
    1,412
    
    
    
    1,413Other
    
    
    1,494
    
    
    
    1,320
    
    
    
    4,456
    
    
    
    3,976Total noninterest expenses
    
    
    7,867
    
    
    
    7,246
    
    
    
    22,773
    
    
    
    21,493Income (loss) before income taxes
    
    
    1,890
    
    
    
    (17,307
    )
    
    
    5,414
    
    
    
    (12,820
    )Income tax expense (benefit)
    
    
    472
    
    
    
    (3,237
    )
    
    
    716
    
    
    
    (1,920
    )Net income (loss)
    
    
    1,418
    
    
    
    (14,070
    )
    
    
    4,698
    
    
    
    (10,900
    )Less: Preferred stock dividend
    
    
    397
    
    
    
    397
    
    
    
    1,191
    
    
    
    432Income (loss) to common shareholders
    
    $
    1,021
    
    
    $
    (14,467
    )
    
    $
    3,507
    
    
    $
    (11,332
    )Net income (loss) per common basic share
    
    $
    0.18
    
    
    
    ($2.65
    )
    
    $
    0.64
    
    
    
    ($2.08
    )Net income (loss) per common diluted share
    
    $
    0.18
    
    
    
    ($2.65
    )
    
    $
    0.64
    
    
    
    ($2.08
    )
 4




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##### 



PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Nine months endedMarch 31,2010
    
    
    2009Cash flows from operating activities:Interest received
    
    $
    57,544
    
    
    $
    67,641Loan fees received
    
    
    242
    
    
    
    423Disbursements of student loans
    
    
    
    
    
    
    (30
    )Proceeds from sales of student loans
    
    
    
    
    
    
    365Other fees and commissions received
    
    
    6,604
    
    
    
    7,070Interest paid
    
    
    (30,260
    )
    
    
    (37,674
    )Cash paid to suppliers and others
    
    
    (39,447
    )
    
    
    (21,134
    )Income taxes paid
    
    
    (1,718
    )
    
    
    (2,501
    )Net cash (used in) provided by operating activities
    
    
    (7,035
    )
    
    
    14,160Cash flows from investing activities:Proceeds from sale of investment securities available for sale
    
    
    2,331
    
    
    
    3,012Proceeds from maturities of investment securities
    
    
    280,366
    
    
    
    83,978Purchase of investment securities held to maturity
    
    
    (332,140
    )
    
    
    (206,750
    )Decrease (increase) of deposits in other banks, net
    
    
    3,318
    
    
    
    (22,914
    )Principal collected on loans
    
    
    181,473
    
    
    
    162,612Loans made to customers, net of loans in process
    
    
    (121,120
    )
    
    
    (118,555
    )Proceeds from loans sold
    
    
    7,527
    
    
    
    5,976Other
    
    
    (178
    )
    
    
    (169
    )Net cash provided by (used in) investing activities
    
    
    21,577
    
    
    
    (92,810
    )Cash flows from financing activities:Net increase in checking and savings accounts
    
    
    58,945
    
    
    
    13,619Net (decrease) increase in certificates of deposit
    
    
    (56,751
    )
    
    
    4,469Proceeds from long-term debt
    
    
    
    
    
    
    25,000Repayment of FHLB advances
    
    
    (19
    )
    
    
    (5,018
    )Repayment of term debt
    
    
    (625
    )
    
    
    Net (decrease) in other borrowings
    
    
    (6,683
    )
    
    
    (811
    )(Decrease) in borrowers advances for taxes and insurance
    
    
    (759
    )
    
    
    (879
    )Proceeds from issuance of preferred stock
    
    
    
    
    
    
    31,762Cash dividends paid
    
    
    (2,009
    )
    
    
    (3,835
    )Contribution of treasury stock to retirement plans
    
    
    712
    
    
    
    Payment for treasury stock
    
    
    
    
    
    
    (717
    )Proceeds from exercise of stock options
    
    
    
    
    
    
    111Net cash (used in) provided by financing activities
    
    
    (7,189
    )
    
    
    63,701Net increase (decrease) in cash and cash equivalents
    
    
    7,353
    
    
    
    (14,949
    )Cash and cash equivalents at beginning of period
    
    
    165,891
    
    
    
    104,692Cash and cash equivalents at end of period
    
    $
    173,244
    
    
    $
    89,743
 5




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##### 



Nine months endedMarch 31,2010
    
    
    2009Reconciliation of net income to net cash
provided by operating activities:Net income (loss)
    
    $
    4,698
    
    
    
    ($10,900
    )Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation and amortization
    
    
    1,439
    
    
    
    1,512Accretion and amortization of loan fees and
discounts
    
    
    (1,296
    )
    
    
    (1,994
    )Loan fees collected and deferred (premiums
paid)
    
    
    (45
    )
    
    
    105Provision for loan losses
    
    
    4,851
    
    
    
    4,982Loss on sale or writedown of assets
    
    
    2,215
    
    
    
    25,724Decrease in accrued interest receivable
    
    
    797
    
    
    
    622(Increase) in other assets
    
    
    (16,327
    )
    
    
    (4,877
    )(Decrease) in accrued interest payable
    
    
    43
    
    
    
    (22
    )Increase (decrease) in other liabilities
    
    
    (3,410
    )
    
    
    (992
    )Total adjustments
    
    
    (11,733
    )
    
    
    25,056Net cash (used in) provided by operating
activities
    
    $
    (7,035
    )
    
    $
    14,160
  
 PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
 AccumulatedAdditional
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    TotalPreferred
    
    
    Common
    
    
    Paid-in
    
    
    Treasury
    
    
    Comprehensive
    
    
    Retained
    
    
    ShareholdersStock
    
    
    Stock
    
    
    Capital
    
    
    Stock
    
    
    Income (Loss)
    
    
    Earnings
    
    
    EquityBalance, June 30, 2009
    
    $
    31,762
    
    
    $
    6,735
    
    
    $
    4,116
    
    
    
    ($27,314
    )
    
    
    ($10
    )
    
    $
    135,471
    
    
    $
    150,760Net income, nine months ended
March 31, 2010
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,698
    
    
    
    4,698Accumulated other comprehensive
Income (loss):Change in swap liability
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    452Change in unrealized gain (loss)
on securities, net of deferred
tax benefit of $(2,713)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,273
    )Reclassification adjustment, net
of taxes of $(808)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,407
    )
    
    
    
    
    
    
    (5,228
    )Comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (530
    )Dividends declared on common
stock at $0.15 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (823
    )
    
    
    (823
    )Dividends on preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,191
    )
    
    
    (1,191
    )Allocation of treasury stock to
retirement plans
    
    
    
    
    
    
    
    
    
    
    (1,409
    )
    
    
    2,121
    
    
    
    
    
    
    
    
    
    
    
    712Recognition of stock option
compensation expense
    
    
    
    
    
    
    
    
    
    
    27
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27Balance, March 31, 2010
    
    $
    31,762
    
    
    $
    6,735
    
    
    $
    2,734
    
    
    
    ($25,193
    )
    
    
    ($5,238
    )
    
    $
    138,155
    
    
    $
    148,955
 6




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##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 STATEMENTS OF OPERATIONS
  SUBSEQUENT EVENTS
  LOANS
 March 31, 2010
    
    June 30, 2009Loans are summarized as follows:Mortgage loans:Residential:1-4 Family
    
    $
    661,307
    
    
    $
    726,586Multifamily
    
    
    31,150
    
    
    
    34,216Commercial
    
    
    115,705
    
    
    
    114,827Other
    
    
    11,006
    
    
    
    14,806819,168
    
    
    
    890,435Consumer loans
    
    
    184,287
    
    
    
    185,818Commercial business loans
    
    
    40,856
    
    
    
    44,602Loans on savings accounts
    
    
    5,416
    
    
    
    5,0311,049,727
    
    
    
    1,125,886Less: Loans in process
    
    
    7
    
    
    
    60Allowance for loan losses
    
    
    17,657
    
    
    
    17,960Unamortized premiums and deferred loan fees
    
    
    (941
    )
    
    
    (1,070
    )Loans, net
    
    $
    1,033,004
    
    
    $
    1,108,936
   2010
    
    
    2009Beginning balance
    
    $
    17,960
    
    
    $
    15,249Provision for losses  mortgage loans
    
    
    4,727
    
    
    
    1,444Provision for losses  consumer loans
    
    
    127
    
    
    
    1,879Provision for losses  commercial loans
    
    
    (3
    )
    
    
    1,659Loans recovered
    
    
    34
    
    
    
    19Loans charged off
    
    
    (5,188
    )
    
    
    (3,000
    )Ending balance
    
    $
    17,657
    
    
    $
    17,250
 7




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##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 COMPREHENSIVE INCOME
  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level I 
    
    Quoted prices are available in the active markets for
identical assets or liabilities as of the measurement date.Level II 
    
    Pricing inputs are other than quoted prices in active markets,
which are either directly or indirectly observable as of the
measurement date. The nature of these assets and liabilities
includes 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 III valuations incorporate certain
assumptions and projections in determining the fair value
assigned to such assets or liabilities.
  Level I
    
    
    Level II
    
    
    Level III
    
    
    TotalFinancial Instruments  Measured
on a recurring basisAssets: Available for sale securities
    
    $
    20,415
    
    
    
    
    
    
    
    
    
    
    $
    20,415Interest rate swaps
    
    
    
    
    
    
    126
    
    
    
    
    
    
    
    126
  8




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##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 Level I
    
    Level II
    
    Level III
    
    TotalAssets Measured on a Nonrecurring Basis:OTTI  Held to maturity trust preferred securities
    
    
    
    
    
    
    
    
    
    $
    3,157
    
    
    $
    3,157OTTI  Held to maturity non agency CMO securities
    
    
    
    
    
    
    
    
    
    
    10,155
    
    
    
    10,155Impaired loans
    
    
    
    
    
    
    
    
    
    
    224
    
    
    
    224Impaired Foreclosed real estate
    
    
    
    
    
    
    
    
    
    
    463
    
    
    
    463
  Cash and Noninterest-Bearing Deposits  Federal Funds Sold
Interest-Earning Deposits in Other Banks
Accrued interest
Cash Surrender Value (CSV) of Bank Owned Life Insurance (BOLI)
Checking, savings and money market accounts
  Real Estate Owned:
 Investments Securities:
 Loans Receivable:
 Deposit Liabilities:
 Advances from Federal Home Loan Bank:
 Term Debt and Other Debt:
 Off-Balance-Sheet Instruments:
 9




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##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
   March 31, 2010
    
    
    June 30, 2009Estimated
    
    
    Carrying
    
    
    Estimated
    
    
    CarryingFair Value
    
    
    Value
    
    
    Fair Value
    
    
    ValueFinancial Assets:Cash and non-interest-earning deposits
    
    $
    21,204
    
    
    $
    21,204
    
    
    $
    15,381
    
    
    $
    15,381Federal funds sold
    
    
    152,040
    
    
    
    152,040
    
    
    
    150,510
    
    
    
    150,510Interest-earning deposits in other banks
    
    
    581
    
    
    
    581
    
    
    
    3,899
    
    
    
    3,899Investment securities available for sale
    
    
    20,415
    
    
    
    20,415
    
    
    
    23,505
    
    
    
    23,505Investment securities held to maturity
    
    
    505,599
    
    
    
    551,080
    
    
    
    438,745
    
    
    
    504,029Loans receivable, gross of allowances
    
    
    1,076,329
    
    
    
    1,049,727
    
    
    
    1,154,459
    
    
    
    1,125,886Accrued interest receivable
    
    
    6,220
    
    
    
    6,220
    
    
    
    7,017
    
    
    
    7,017Cash surrender value of BOLI
    
    
    25,015
    
    
    
    25,015
    
    
    
    24,188
    
    
    
    24,188Financial Liabilities:Checking, savings and money market accounts
    
    $
    680,928
    
    
    $
    680,928
    
    
    $
    621,967
    
    
    $
    621,967Certificates of deposit
    
    
    843,768
    
    
    
    824,782
    
    
    
    900,017
    
    
    
    878,433Accrued interest payable
    
    
    7,732
    
    
    
    7,732
    
    
    
    11,713
    
    
    
    11,713Advances from Federal Home Loan Bank
    
    
    202,667
    
    
    
    186,030
    
    
    
    199,156
    
    
    
    186,202Term debt
    
    
    23,504
    
    
    
    24,375
    
    
    
    24,673
    
    
    
    25,000Other debt
    
    
    13,951
    
    
    
    14,578
    
    
    
    20,136
    
    
    
    21,261Off-balance sheet loan instruments
    
    $
    5
    
    
    $
    
    
    
    $
    13
    
    
    $
    
 INVESTMENT SECURITIES
  Investment Securities available for sale:
 Investment Securities Held to Maturity:
 Other-than Temporary Impairments
  10




---



##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
      March 31, 2010
    
    
    June 30, 2009Available for Sale Investments
    
    Amortized Cost
    
    
    Fair Value
    
    
    Amortized Cost
    
    
    Fair ValueFHLB of Pittsburgh stock
    
    $
    14,357
    
    
    $
    14,357
    
    
    $
    13,826
    
    
    $
    13,826Preferred stocks:FHLMC Series M Pfd
    
    
    
    
    
    
    
    
    
    
    20
    
    
    
    49FHLMC Series S Pfd
    
    
    
    
    
    
    
    
    
    
    30
    
    
    
    73Bank of America Corp Pfd Series J
    
    
    
    
    
    
    
    
    
    
    2,192
    
    
    
    3,680Mutual Funds  ARM mortgages
    
    
    5,500
    
    
    
    5,281
    
    
    
    5,500
    
    
    
    5,302Common equities
    
    
    474
    
    
    
    777
    
    
    
    473
    
    
    
    575$
    20,331
    
    
    $
    20,415
    
    
    $
    22,041
    
    
    $
    23,505
 March 31, 2010
    
    
    June 30, 2009Held to Maturity Investments
    
    Amortized Cost
    
    
    Fair Value
    
    
    Amortized Cost
    
    
    Fair ValueU.S. Government and agency obligations
    
    $
    175,791
    
    
    $
    176,923
    
    
    $
    108,682
    
    
    $
    109,719Municipal obligations
    
    
    16,797
    
    
    
    17,342
    
    
    
    19,165
    
    
    
    19,365Corporate debt:Short to medium term corporate debt
    
    
    39,870
    
    
    
    41,121
    
    
    
    57,464
    
    
    
    57,848Pooled trust preferred securities
    
    
    63,017
    
    
    
    28,748
    
    
    
    68,306
    
    
    
    34,456Individual trust preferred securities
    
    
    9,317
    
    
    
    7,432
    
    
    
    9,354
    
    
    
    6,487Mortgage-backed securities:Agency
    
    
    95,721
    
    
    
    96,739
    
    
    
    63,367
    
    
    
    63,811Agency Collateralized Mortgage Obligations
(CMOs)
    
    
    10,826
    
    
    
    10,911
    
    
    
    1,540
    
    
    
    1,558CMOs  non agency
    
    
    139,741
    
    
    
    126,383
    
    
    
    176,145
    
    
    
    145,496$
    551,080
    
    
    $
    505,599
    
    
    $
    504,029
    
    
    $
    438,745
 11




---



##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
    Less than 12 months
    
    Greater than 12 monthsOf unrealized losses
    
    of unrealized losses
    
    TotalUnrealized
    
    
    
    
    
    Unrealized
    
    
    
    
    
    UnrealizedAvailable for Sale Investments
    
    Fair Value
    
    loss
    
    Fair Value
    
    loss
    
    Fair Value
    
    lossMutual funds  US government agency
    
    $
    
    
    
    $
    
    
    
    $
    4,765
    
    
    $
    235
    
    
    $
    4,765
    
    
    $
    235Held to Maturity InvestmentsU.S. Government and agency
obligations
    
    
    44,904
    
    
    
    130
    
    
    
    
    
    
    
    
    
    
    
    44,904
    
    
    
    130Pooled trust preferred securities
    
    
    
    
    
    
    
    
    
    
    25,591
    
    
    
    34,269
    
    
    
    25,591
    
    
    
    34,269Individual trust preferred securities
    
    
    702
    
    
    
    11
    
    
    
    5,684
    
    
    
    1,915
    
    
    
    6,386
    
    
    
    1,926CMOs  non agency
    
    
    23,856
    
    
    
    2,560
    
    
    
    62,796
    
    
    
    12,378
    
    
    
    86,652
    
    
    
    14,938Mortgage-backed securities and CMOs-agency
    
    
    22,876
    
    
    
    168
    
    
    
    320
    
    
    
    1
    
    
    
    23,196
    
    
    
    169
 Available for sale securities.
 FHLB of Pittsburgh Stock
 Preferred Stocks
 12




---



##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
  Mutual Funds
 Common Equities.
 Held to maturity securities.
 U.S. Government and Agency Obligations.
 Trust Preferred Securities
  13




---



##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
   
    
    Estimate of future cash flows  cash flows are constructed on Intex software. Intex
is a proprietary software program recognized as the industry standard for analyzing all
types of collateralized debt obligations. It includes each deals structural features
updated with information from trustee reports, including collateral/hedge
agreement/cash flow detail, as it becomes available. A present value analysis is then
performed on the modeled cash flows to determine any cash flow shortages to Parkvales
respective holdings, if any.
    
    Credit analysis  A quarterly credit evaluation is performed for each of the issuers
comprising the collateral across the various pooled trust preferred securities. The
credit evaluation considers all evidence available and includes the nature of the
issuers business and geographic footprint. The analysis focuses on shareholders
equity, loan loss reserves, non-performing assets, credit quality ratios and capital
adequacy.
    
    Probability of default  A probability of default is determined for each issuer and
is used to calculate the expected impact of future deferrals and defaults in the
expected cash flow analysis. Each issuer in the collateral pool is assigned a
probability of default with an emphasis on near term probability in the first three
years. Issuers currently defaulted are assigned a 100% probability of loss, and issuers
currently deferring are assigned a probability of loss with recoveries ranging from 0%
to 50% projected to begin 2 years after the deferrals began. All other issuers in the
pool are assigned a probability of loss ranging from 0% to 80%, with ranges based upon
the results of the credit analysis. The probability of loss of 0% is assigned to only
the strongest financial institutions. The probability of default is updated quarterly
with data provided by trustees and other sources.
   14




---



##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
      15




---



##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
  ExpectedDefaults (%
    
    
    Excessof
    
    
    SubordinationLowest
    
    
    
    Actual
    
    
    Actual
    
    
    performing
    
    
    (as a % ofNote

    Par
    
    
    Book
    
    
    Fair
    
    
    Unrealized
    
    
    Credit
    
    # of
    
    Default %
    
    
    Deferral %
    
    
    collateral)
    
    
    performingDeal
    Class
    Value
    
    
    Value
    
    
    Value
    
    
    Gain (Loss)
    
    
    Ratings
    
    Issuers
    
    (1)
    
    
    (1) (2)
    
    
    (3)
    
    
    collateral) (4)Pooled InvestmentsP1
    
    C1
    
    
    5,000
    
    
    
    5,000
    
    
    
    1,903
    
    
    
    (3,097
    )
    
    C
    
    81
    
    
    19.4
    %
    
    
    14.5
    %
    
    
    2.6
    %
    
    
    6.2
    %P2
    
    A2A
    
    
    5,000
    
    
    
    4,570
    
    
    
    1,452
    
    
    
    (3,118
    )
    
    BB
    
    79
    
    
    15.9
    %
    
    
    13.4
    %
    
    
    6.1
    %
    
    
    45.4
    %P3
    
    C1
    
    
    4,592
    
    
    
    4,376
    
    
    
    2,049
    
    
    
    (2,327
    )
    
    C
    
    85
    
    
    9.5
    %
    
    
    8.7
    %
    
    
    1.2
    %
    
    
    14.9
    %P4
    
    C1
    
    
    5,058
    
    
    
    4,718
    
    
    
    1,854
    
    
    
    (2,864
    )
    
    C
    
    72
    
    
    11.0
    %
    
    
    12.8
    %
    
    
    1.3
    %
    
    
    1.5
    %P5
    
    C1
    
    
    5,023
    
    
    
    4,958
    
    
    
    1,952
    
    
    
    (3,006
    )
    
    C
    
    93
    
    
    11.2
    %
    
    
    14.3
    %
    
    
    1.6
    %
    
    
    22.3
    %P6
    
    C1
    
    
    3,075
    
    
    
    3,075
    
    
    
    1,161
    
    
    
    (1,914
    )
    
    C
    
    65
    
    
    19.1
    %
    
    
    14.0
    %
    
    
    3.1
    %
    
    
    18.0
    %P8
    
    C
    
    
    3,219
    
    
    
    2,904
    
    
    
    1,119
    
    
    
    (1,785
    )
    
    C
    
    52
    
    
    11.7
    %
    
    
    17.8
    %
    
    
    2.4
    %
    
    
    12.8
    %P9
    
    B
    
    
    2,008
    
    
    
    1,671
    
    
    
    673
    
    
    
    (998
    )
    
    CC
    
    54
    
    
    8.7
    %
    
    
    22.3
    %
    
    
    3.9
    %
    
    
    20.6
    %P10
    
    B1
    
    
    5,000
    
    
    
    4,853
    
    
    
    3,668
    
    
    
    (1,185
    )
    
    B-
    
    25
    
    
    0.0
    %
    
    
    5.8
    %
    
    
    4.6
    %
    
    
    35.2
    %P11 (5) (6) (7)
    
    Mezz
    
    
    1,500
    
    
    
    971
    
    
    
    971
    
    
    
    0
    
    
    C
    
    35
    
    
    13.2
    %
    
    
    25.7
    %
    
    
    3.0
    %
    
    
    0.0
    %P12
    
    B2
    
    
    1,000
    
    
    
    1,000
    
    
    
    635
    
    
    
    (365
    )
    
    C
    
    49
    
    
    14.4
    %
    
    
    13.7
    %
    
    
    2.1
    %
    
    
    14.2
    %P13
    
    B
    
    
    3,909
    
    
    
    3,759
    
    
    
    1,300
    
    
    
    (2,459
    )
    
    CC
    
    55
    
    
    14.3
    %
    
    
    13.1
    %
    
    
    3.1
    %
    
    
    23.4
    %P14
    
    A1
    
    
    4,745
    
    
    
    4,379
    
    
    
    2,057
    
    
    
    (2,322
    )
    
    BB
    
    64
    
    
    17.0
    %
    
    
    11.3
    %
    
    
    3.6
    %
    
    
    49.1
    %P15 (6) (7)
    
    B
    
    
    5,000
    
    
    
    2,186
    
    
    
    2,186
    
    
    
    0
    
    
    C
    
    34
    
    
    20.5
    %
    
    
    12.8
    %
    
    
    4.5
    %
    
    
    0.0
    %P16
    
    C1
    
    
    5,000
    
    
    
    4,930
    
    
    
    2,250
    
    
    
    (2,680
    )
    
    C
    
    49
    
    
    16.2
    %
    
    
    6.7
    %
    
    
    1.1
    %
    
    
    14.5
    %P17
    
    C1
    
    
    5,000
    
    
    
    4,970
    
    
    
    2,246
    
    
    
    (2,724
    )
    
    C
    
    43
    
    
    18.2
    %
    
    
    7.9
    %
    
    
    1.3
    %
    
    
    15.0
    %P18
    
    D
    
    
    5,058
    
    
    
    4,697
    
    
    
    1,272
    
    
    
    (3,425
    )
    
    C
    
    63
    
    
    9.3
    %
    
    
    25.4
    %
    
    
    2.5
    %
    
    
    2.0
    %Subtotal
    
    17
    
    
    69,187
    
    
    
    63,017
    
    
    
    28,748
    
    
    
    (34,269
    )Single Issuer InvestmentsS1
    
    N/A
    
    
    1,000
    
    
    
    927
    
    
    
    688
    
    
    
    (239
    )
    
    BB
    
    1
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %S2
    
    N/A
    
    
    2,000
    
    
    
    1,968
    
    
    
    1,402
    
    
    
    (566
    )
    
    BB
    
    1
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %S3
    
    N/A
    
    
    3,000
    
    
    
    2,768
    
    
    
    1,855
    
    
    
    (913
    )
    
    BBB+
    
    1
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %S4
    
    N/A
    
    
    500
    
    
    
    444
    
    
    
    276
    
    
    
    (168
    )
    
    B
    
    1
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %S5
    
    N/A
    
    
    1,000
    
    
    
    1,005
    
    
    
    1,046
    
    
    
    41
    
    
    NR
    
    1
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %S6
    
    N/A
    
    
    700
    
    
    
    712
    
    
    
    702
    
    
    
    (10
    )
    
    NR
    
    1
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %S7
    
    N/A
    
    
    529
    
    
    
    493
    
    
    
    483
    
    
    
    (10
    )
    
    B+
    
    1
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %S8
    
    N/A
    
    
    1,000
    
    
    
    1,000
    
    
    
    980
    
    
    
    (20
    )
    
    BB+
    
    1
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %Subtotal
    
    8
    
    
    9,729
    
    
    
    9,317
    
    
    
    7,432
    
    
    
    (1,885
    )Total
    
    
    
    
    78,916
    
    
    
    72,334
    
    
    
    36,180
    
    
    
    (36,154
    )
   
 (1)
    
    As a percentage of the total collateral.(2)
    
    Includes deferrals that have not paid current interest payments as permitted by the debt instruments.(3)
    
    Expected defaults are determined by an analysis of the collateral for each security. The total expected defaults are then applied
over a three year period with 50% projected to occur in year 1, 30% in year 2, and 20% in year 3.(4)
    
    Excess subordination represents the additional defaults in excess of actual deferrals and defaults that the CDO can absorb
before the security experiences a shortfall in principal.(5)
    
    Book value reduced in March 2009 to fair value as a result of OTTI.(6)
    
    Book value reduced in December 2009 to fair value as a result of OTTI.(7)
    
    Book value reduced in March 2010 to fair value as a result of OTTI. 16




---



##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 Non agency CMOs
 Year originated
    
    Book Value
    
    
    Fair Value2003
    
    $
    31,926
    
    
    $
    32,8822004
    
    
    41,190
    
    
    
    36,6282005
    
    
    52,275
    
    
    
    46,4302006
    
    
    2,847
    
    
    
    2,2362007
    
    
    7,365
    
    
    
    4,1142008
    
    
    4,138
    
    
    
    4,093$
    139,741
    
    
    $
    126,383
  Book Value
    
    
    Fair ValueAAA by Moodys, S&P, or Fitch
    
    $
    38,549
    
    
    $
    39,279AA by Moodys or S&P
    
    
    17,191
    
    
    
    17,327A by Moodys, S&P, or Fitch
    
    
    16,921
    
    
    
    14,072BBB by Moodys or Fitch
    
    
    15,748
    
    
    
    12,104BB by Fitch
    
    
    20,015
    
    
    
    17,341B by Moodys or S&P
    
    
    13,749
    
    
    
    10,265CCC by S&P or Fitch
    
    
    13,173
    
    
    
    11,495CC by Fitch
    
    
    4,395
    
    
    
    4,500$
    139,741
    
    
    $
    126,383
  General
 17




---



##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 Other-Than-Temporary- Impairment
  Unadjusted
    
    
    OTTI
    
    
    OTTI
    
    
    3/31/10
    
    
    3/31/10Carrying
    
    
    Charge to
    
    
    Charge to
    
    
    Carrying
    
    
    FairValue
    
    
    earnings
    
    
    OCI
    
    
    Value
    
    
    ValueSecurityNon Agency CMO
    
    $
    17,626
    
    
    $
    2,015
    
    
    $
    5,561
    
    
    $
    10,050
    
    
    $
    10,155Pooled trust preferred security
    
    
    6,623
    
    
    
    1,082
    
    
    
    2,384
    
    
    
    3,157
    
    
    
    3,157
  Trust preferred securities
    
    
    Non Agency CMOBalance at June 30, 2009
    
    $
    552
    
    
    $
    714Total losses  realized/unrealized
    
    
    2,600
    
    
    
    5,350Included as a charge to earnings
    
    
    (768
    )
    
    
    (503
    )Change to other comprehensive income
    
    
    
    
    
    
    Balance at March 31, 2010
    
    $
    2,384
    
    
    $
    5,561The amount of securities
with OTTI charges to
earnings are as follows:Recorded in September 2009
    
    $
    2,761
    
    
    $
    Recorded in December 2009
    
    
    648
    
    
    
    134Recorded in March 2010
    
    
    216
    
    
    
    828$
    3,625
    
    
    $
    962
  Writeoffs no longer reflected as investments
    
    $
    2,761
    
    
    $
    Charged to earnings:Level III  Pooled TPS
    
    
    864
    
    
    
    Level III  Non Agency CMO
    
    
    
    
    
    
    962
  18




---



##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 GOODWILL AND MARKET VALUATION
    19




---



##### 



NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
  EARNINGS PER SHARE (EPS)
  Three months ended
    
    
    Nine months endedMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Numerator for basic and diluted EPS:Net income (loss) (in 000s)
    
    $
    1,418
    
    
    
    ($14,070
    )
    
    $
    4,698
    
    
    
    ($10,900
    )Less: Preferred stock dividend
    
    
    397
    
    
    
    397
    
    
    
    1,191
    
    
    
    432Income available to common stockholders
    
    $
    1,021
    
    
    
    ($14,467
    )
    
    $
    3,507
    
    
    
    ($11,332
    )Denominator:Weighted average shares for basic EPS
    
    
    5,527,818
    
    
    
    5,427,695
    
    
    
    5,461,373
    
    
    
    5,459,162Number of dilutive stock options
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,410Weighted average shares for dilutive EPS
    
    
    5,527,818
    
    
    
    5,427,695
    
    
    
    5,461,373
    
    
    
    5,460,573Net income per common share:Basic
    
    $
    0.18
    
    
    
    ($2.65
    )
    
    $
    0.64
    
    
    
    ($2.08
    )Diluted
    
    $
    0.18
    
    
    
    ($2.65
    )
    
    $
    0.64
    
    
    
    ($2.08
    )
 NEW ACCOUNTING PRONOUNCEMENTS
 Technical Corrections to Various Topics Derivatives and Hedging,
 Subsequent Events (Topic 855): Amendments to
Certain Recognition and Disclosure Requirements.
 20




---



##### 



PARKVALE FINANCIAL CORPORATION
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
  Forward-Looking Statements:
    Critical Accounting Policies, Judgments and Estimates:
  21




---



##### 



Balance Sheet Data:
 March 31,2010
    
    
    2009Total assets
    
    $
    1,896,225
    
    
    $
    1,906,436Loans, net
    
    
    1,033,004
    
    
    
    1,143,015Interest-earning deposits and federal funds sold
    
    
    152,621
    
    
    
    103,448Total investments
    
    
    571,495
    
    
    
    543,667Deposits
    
    
    1,513,442
    
    
    
    1,511,773FHLB advances
    
    
    186,030
    
    
    
    186,259Shareholders equity
    
    
    148,955
    
    
    
    149,752Book value per common share
    
    $
    21.19
    
    
    $
    21.74
  Three Months Ended
    
    Nine Months EndedMarch 31, (1)
    
    March 31, (1)2010
    
    2009
    
    2010
    
    2009Average yield earned on all interest-earning assets
    
    
    4.20
    %
    
    
    5.09
    %
    
    
    4.32
    %
    
    
    5.32
    %Average rate paid on all interest-bearing liabilities
    
    
    2.07
    
    
    
    2.83
    
    
    
    2.30
    
    
    
    2.97Average interest rate spread
    
    
    2.13
    
    
    
    2.26
    
    
    
    2.02
    
    
    
    2.35Net yield on average interest-earning assets
    
    
    2.12
    
    
    
    2.30
    
    
    
    2.07
    
    
    
    2.43Other expenses to average assets
    
    
    1.65
    
    
    
    1.52
    
    
    
    1.59
    
    
    
    1.54Taxes to pre-tax income
    
    
    24.97
    
    
    
    -18.70
    
    
    
    13.22
    
    
    
    -14.98Dividend payout ratio
    
    
    27.78
    
    
    
    -8.30
    
    
    
    23.44
    
    
    
    -31.73Return on average assets
    
    
    0.30
    
    
    
    -2.96
    
    
    
    0.33
    
    
    
    -0.78Return on average equity
    
    
    3.68
    
    
    
    -34.51
    
    
    
    4.10
    
    
    
    -9.83Average equity to average total assets
    
    
    8.11
    
    
    
    8.56
    
    
    
    7.99
    
    
    
    7.93Dividends per share
    
    $
    0.05
    
    
    $
    0.22
    
    
    $
    0.15
    
    
    $
    0.66
 22




---



##### 



At March 31,2010
    
    
    2009One year gap to total assets
    
    
    13.12
    %
    
    
    9.78
    %Intangibles to total equity
    
    
    19.29
    
    
    
    19.80Ratio of nonperforming loans and foreclosed real estate to total assets
    
    
    1.79
    
    
    
    1.65Number of full-service offices
    
    
    47
    
    
    
    48
 
 (1)
    
    The applicable income and expense figures have been annualized in calculating the
percentages. Nonperforming Loans and Foreclosed Real Estate:
  (Dollar amounts in thousands)
    
    3/31/10
    
    
    6/30/09
    
    
    3/31/09Delinquent single-family mortgage loans
    
    $
    19,166
    
    
    $
    21,046
    
    
    $
    18,162Delinquent other loans
    
    
    5,571
    
    
    
    3,321
    
    
    
    6,078Total nonperforming loans
    
    
    24,737
    
    
    
    24,367
    
    
    
    24,240Total impaired loans
    
    
    224
    
    
    
    3,568
    
    
    
    776Real estate owned, net
    
    
    8,944
    
    
    
    5,706
    
    
    
    6,475Total
    
    $
    33,905
    
    
    $
    33,641
    
    
    $
    31,491
     23




---



##### 



Allowance for Loan Losses:
  24




---



##### 



Liquidity and Capital Resources:
  TARP Capital Purchase Program
  25




---



##### 



Term Debt
 26




---



##### 



Capital:
   27




---



##### 



Tier 1
    
    Tier 1
    
    TotalCore
    
    Risk-Based
    
    Risk-BasedCapital
    
    Capital
    
    CapitalEquity capital (1)
    
    $
    171,209
    
    
    $
    171,209
    
    
    $
    171,209Less non-allowable intangible assets
    
    
    (28,738
    )
    
    
    (28,738
    )
    
    
    (28,738
    )Plus permitted valuation allowances (2)
    
    
    
    
    
    
    
    
    
    
    12,866Plus accumulated other comprehensive
income
    
    
    5,165
    
    
    
    5,165
    
    
    
    5,165Total regulatory capital
    
    
    147,636
    
    
    
    147,636
    
    
    
    160,502Minimum required capital
    
    
    75,083
    
    
    
    54,169
    
    
    
    108,338Excess regulatory capital
    
    $
    72,553
    
    
    $
    93,467
    
    
    $
    52,164Adjusted total assets (1)
    
    $
    1,877,073
    
    
    $
    1,354,224
    
    
    $
    1,354,224Regulatory capital as a percentage
    
    
    7.87
    %
    
    
    10.90
    %
    
    
    11.85
    %Minimum capital required as a percentage
    
    
    4.00
    %
    
    
    4.00
    %
    
    
    8.00
    %Excess regulatory capital as a percentage
    
    
    3.87
    %
    
    
    6.90
    %
    
    
    3.85
    %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 March 31, 2010.(2)
    
    Limited to 1.25% of risk adjusted total assets. Results of Operations  Comparison of Three Months Ended March 31, 2010 and 2009:
  Interest Income:
  28




---



##### 



Interest Expense:
  Net Interest Income:
  Provision for Loan Losses:
   Noninterest Income:
  29




---



##### 



Pooled trust preferred securities
    
    $
    216,000Collateralized mortgage obligation
    
    
    828,000
   Bank of America preferred stocks
    
    $
    6,269,000FHLMC preferred stocks
    
    
    186,000Other bank common equities
    
    
    341,000Pooled trust preferred securities
    
    
    13,667,000Individual trust preferred security
    
    
    446,000Total
    
    $
    20,909,000
   30




---



##### 



Noninterest Expense:
  Income Tax Expense (Benefit):
  Results of Operations  Comparison of Nine Months Ended March 31, 2010 and 2009:
  31




---



##### 



Interest Income:
  Interest Expense:
  Net Interest Income:
  Provision for Loan Losses:
  Noninterest Income:
  32




---



##### 



Pooled trust preferred securities
    
    $
    3,625,000Collateralized mortgage obligation
    
    
    962,000
  Noninterest Expense:
  Income Tax Expense (Benefit):
  Impact of Inflation and Changing Prices:
  33




---



##### 



PART II  OTHER INFORMATION
 Item 1. Legal Proceedings
    
    None
    (a)
    
    During the quarter, Parkvale Financial Corporation sold from Treasury shares 16,052 shares at
a market price of $6.935 and 450 shares at a market price of $6.865 to the Executive Deferred
Compensation Plan and 1,346 shares at a market price of $7.41 to the Supplemental Executive
Benefit Plan.(b)
    
    Not applicable(c)
    
    Not applicable
   Item 4. Submission of Matters to a Vote of Security Holders
    
    None
 Item 5. Other Information
    
    None
 Item 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 Interim Principal 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 Interim Principal
Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 34




---



##### 



SIGNATURES
  Parkvale Financial CorporationDATE: April 29, 2010
    By:
    /s/ Gilbert A. RiazziGilbert A. RiazziVice President and
Interim Principal Financial OfficerDATE: April 29, 2010
    By:
    /s/ Robert J. McCarthy, Jr.Robert J. McCarthy, Jr.President and
Chief Executive Officer 35