##### 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 MARCH 31, 2008
 COMMISSION FILE NO: 0-17411
 PARKVALE FINANCIAL CORPORATION
  Pennsylvania
    
    25-1556590(State of incorporation)
    
    (I.R.S. EmployerIdentification 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 March 31, 2008
and June 30, 2007
    
    
    3Consolidated Statements of Operations for the three and nine months ended
March 31, 2008 and 2007
    
    
    4Consolidated Statements of Cash Flows for the nine months ended
March 31, 2008 and 2007
    
    
    5-6Consolidated Statements of Shareholders Equity for the nine months ended
March 31, 2008
    
    
    6Notes to Unaudited Interim Consolidated Financial Statements
    
    
    7-11Item 2.Managements Discussion and Analysis of Financial Condition and
Results of Operations
    
    
    12-20Item 3.
Quantitative and Qualitative Disclosures about Market Risk
    
    
    20Item 4.
Controls and Procedures
    
    
    20-21Part II  Other Information
    
    
    21Signatures
    
    
    22Exhibits
    
    
    23-25EX-31.1EX-31.2EX-32.1
  2




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PARKVALE FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 March 31,
    
    
    June 30,2008
    
    
    2007(Unaudited)ASSETSCash and noninterest-earning deposits
    
    $
    18,034
    
    
    $
    31,248Federal funds sold
    
    
    136,000
    
    
    
    114,000Cash and cash equivalents
    
    
    154,034
    
    
    
    145,248Interest-earning deposits in other banks
    
    
    8,326
    
    
    
    4,803Investment securities available for sale (cost of
$37,448 at March 31 and $30,303 at June 30)
    
    
    33,236
    
    
    
    30,580Investment securities held to maturity (fair value
of $364,940 at March 31 and $347,022 at June 30)
    
    
    387,330
    
    
    
    349,363Loans, net of allowance of $15,044 at March 31
and $14,189 at June 30
    
    
    1,181,982
    
    
    
    1,234,397Foreclosed real estate, net
    
    
    2,648
    
    
    
    1,857Office properties and equipment, net
    
    
    18,866
    
    
    
    17,387Goodwill
    
    
    25,634
    
    
    
    25,634Intangible assets
    
    
    4,922
    
    
    
    5,604Prepaid expenses and other assets
    
    
    39,829
    
    
    
    29,358Total assets
    
    $
    1,856,807
    
    
    $
    1,844,231LIABILITIES AND SHAREHOLDERS EQUITYLIABILITIESDeposits
    
    $
    1,490,174
    
    
    $
    1,469,084Advances from Federal Home Loan Bank
    
    
    201,487
    
    
    
    211,658Trust preferred securities
    
    
    
    
    
    
    7,200Other debt
    
    
    21,730
    
    
    
    13,106Advance payments from borrowers for taxes and
insurance
    
    
    6,933
    
    
    
    7,665Other liabilities
    
    
    6,191
    
    
    
    5,848Total liabilities
    
    
    1,726,515
    
    
    
    1,714,561SHAREHOLDERS 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
    
    
    3,988
    
    
    
    3,717Treasury stock at cost (1,154,406 shares at March 31
and 1,122,546 at June 30)
    
    
    (26,614
    )
    
    
    (22,695
    )Accumulated other comprehensive income
    
    
    (2,674
    )
    
    
    176Retained earnings
    
    
    148,857
    
    
    
    141,737Total shareholders equity
    
    
    130,292
    
    
    
    129,670Total liabilities and shareholders equity
    
    $
    1,856,807
    
    
    $
    1,844,231
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PARKVALE FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
 Three months ended
    
    
    Nine months endedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Interest income:Loans
    
    $
    17,589
    
    
    $
    18,121
    
    
    $
    54,265
    
    
    $
    53,676Investments
    
    
    6,076
    
    
    
    4,820
    
    
    
    16,458
    
    
    
    14,343Federal funds sold
    
    
    870
    
    
    
    1,391
    
    
    
    3,602
    
    
    
    4,924Total interest income
    
    
    24,535
    
    
    
    24,332
    
    
    
    74,325
    
    
    
    72,943Interest expense:Deposits
    
    
    11,762
    
    
    
    11,249
    
    
    
    35,928
    
    
    
    33,541Borrowings
    
    
    2,726
    
    
    
    2,838
    
    
    
    8,320
    
    
    
    8,663Trust preferred securities
    
    
    
    
    
    
    693
    
    
    
    317
    
    
    
    2,191Total interest expense
    
    
    14,488
    
    
    
    14,780
    
    
    
    44,565
    
    
    
    44,395Net interest income
    
    
    10,047
    
    
    
    9,552
    
    
    
    29,760
    
    
    
    28,548Provision for loan losses
    
    
    376
    
    
    
    304
    
    
    
    1,367
    
    
    
    612Net interest income after
provision for losses
    
    
    9,671
    
    
    
    9,248
    
    
    
    28,393
    
    
    
    27,936Noninterest Income:Service charges on deposit accounts
    
    
    1,676
    
    
    
    1,677
    
    
    
    5,231
    
    
    
    5,217Other fees and service charges
    
    
    354
    
    
    
    279
    
    
    
    1,004
    
    
    
    895Net (loss) gain on sale and writedown of securities
    
    
    (19
    )
    
    
    256
    
    
    
    (19
    )
    
    
    380Other
    
    
    542
    
    
    
    379
    
    
    
    2,005
    
    
    
    1,256Total noninterest income
    
    
    2,553
    
    
    
    2,591
    
    
    
    8,221
    
    
    
    7,748Noninterest Expenses:Compensation and employee benefits
    
    
    4,115
    
    
    
    3,899
    
    
    
    12,404
    
    
    
    11,434Office occupancy
    
    
    1,206
    
    
    
    1,253
    
    
    
    3,417
    
    
    
    3,602Marketing
    
    
    88
    
    
    
    93
    
    
    
    443
    
    
    
    354FDIC insurance
    
    
    42
    
    
    
    46
    
    
    
    126
    
    
    
    135Office supplies, telephone and postage
    
    
    460
    
    
    
    460
    
    
    
    1,414
    
    
    
    1,411Early extinguishment of debt
    
    
    
    
    
    
    625
    
    
    
    62
    
    
    
    625Other
    
    
    1,211
    
    
    
    1,176
    
    
    
    3,754
    
    
    
    3,582Total noninterest expenses
    
    
    7,122
    
    
    
    7,552
    
    
    
    21,620
    
    
    
    21,143Income before income taxes
    
    
    5,102
    
    
    
    4,287
    
    
    
    14,994
    
    
    
    14,541Income tax expense
    
    
    1,576
    
    
    
    1,415
    
    
    
    4,249
    
    
    
    4,732Net income
    
    $
    3,526
    
    
    $
    2,872
    
    
    $
    10,745
    
    
    $
    9,809Net income per share:Basic
    
    $
    0.65
    
    
    $
    0.51
    
    
    $
    1.95
    
    
    $
    1.73Diluted
    
    $
    0.64
    
    
    $
    0.50
    
    
    $
    1.93
    
    
    $
    1.71
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PARKVALE FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 Nine months endedMarch 31,2008
    
    
    2007Cash flows from operating activities:Interest received
    
    $
    76,049
    
    
    $
    73,972Loan fees received (premiums paid)
    
    
    191
    
    
    
    28Disbursements of student loans
    
    
    (1,196
    )
    
    
    (464
    )Proceeds from sales of student loans
    
    
    712
    
    
    
    1,017Other fees and commissions received
    
    
    7,444
    
    
    
    6,980Interest paid
    
    
    (44,831
    )
    
    
    (44,671
    )Cash paid to suppliers and others
    
    
    (19,458
    )
    
    
    (18,878
    )Income taxes paid
    
    
    (4,112
    )
    
    
    (3,803
    )Net cash provided by operating activities
    
    
    14,799
    
    
    
    14,181Cash flows from investing activities:Proceeds from sale of investment securities available for sale
    
    
    1,884
    
    
    
    4,542Proceeds from maturities of investment securities
    
    
    267,758
    
    
    
    143,652Purchase of investment securities held to maturity
    
    
    (324,657
    )
    
    
    (113,129
    )(Purchase) maturity of deposits in other banks
    
    
    (3,523
    )
    
    
    2,972Purchase of loans
    
    
    (36,474
    )
    
    
    (129,816
    )Principal collected on loans
    
    
    242,022
    
    
    
    209,355Loans made to customers, net of loans in process
    
    
    (154,882
    )
    
    
    (116,126
    )Other
    
    
    (2,418
    )
    
    
    (1,223
    )Net cash (used in) provided by investing activities
    
    
    (10,290
    )
    
    
    227Cash flows from financing activities:Net increase (decrease) in checking and savings accounts
    
    
    13,109
    
    
    
    (16,646
    )Net increase in certificates of deposit
    
    
    8,062
    
    
    
    9,994Repayment of FHLB advances
    
    
    (10,018
    )
    
    
    (5,017
    )Redemption of trust preferred securities
    
    
    (7,200
    )
    
    
    (25,000
    )Net increase (decrease) in other borrowings
    
    
    8,624
    
    
    
    (2,640
    )Decrease in borrowers advances for taxes and insurance
    
    
    (732
    )
    
    
    (641
    )Cash dividends paid
    
    
    (3,655
    )
    
    
    (3,408
    )Allocation of treasury stock to retirement plans
    
    
    864
    
    
    
    612Acquisition of treasury stock
    
    
    (4,949
    )
    
    
    (1,305
    )Proceeds from exercise of stock options
    
    
    172
    
    
    
    170Net cash provided by (used in) financing activities
    
    
    4,277
    
    
    
    (43,881
    )Net increase (decrease) increase in cash and cash equivalents
    
    
    8,786
    
    
    
    (29,473
    )Cash and cash equivalents at beginning of period
    
    
    145,248
    
    
    
    129,676Cash and cash equivalents at end of period
    
    $
    154,034
    
    
    $
    100,203
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Nine months endedMarch 31,2008
    
    
    2007Reconciliation of net income to net cash provided
by operating activities:Net income
    
    $
    10,745
    
    
    $
    9,809Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    1,620
    
    
    
    1,882Accretion and amortization of loan fees and discounts
    
    
    (662
    )
    
    
    449Loan fees collected and deferred (premiums paid)
    
    
    73
    
    
    
    (181
    )Provision for loan losses
    
    
    1,367
    
    
    
    612Loss (gain) on sale of assets
    
    
    19
    
    
    
    (380
    )Decrease in accrued interest receivable
    
    
    2,144
    
    
    
    580(Increase) decrease in other assets
    
    
    (3,098
    )
    
    
    980(Decrease) in accrued interest payable
    
    
    (128
    )
    
    
    (165
    )Increase in other liabilities
    
    
    2,719
    
    
    
    595Total adjustments
    
    
    4,054
    
    
    
    4,372Net cash provided by operating activities
    
    $
    14,799
    
    
    $
    14,181
  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, 2007
    
    $
    6,735
    
    
    $
    3,717
    
    
    
    ($22,695
    )
    
    $
    176
    
    
    $
    141,737
    
    
    $
    129,670Net income, nine months ended March 31, 2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,745
    
    
    
    10,745Accumulated other comprehensive income:Change in unrealized gain (loss) on securities,
net of deferred tax benefit of ($1,643)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,443
    )Reclassification adjustment, net of taxes of ($174)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (407
    )
    
    
    
    
    
    
    (2,850
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,895Treasury stock purchased
    
    
    
    
    
    
    
    
    
    
    (4,949
    )
    
    
    
    
    
    
    
    
    
    
    (4,949
    )Dividends declared on common stock at
$0.66 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,625
    )
    
    
    (3,625
    )Treasury stock contributed to retirement plans
    
    
    
    
    
    
    
    
    
    
    864
    
    
    
    
    
    
    
    
    
    
    
    864Stock option compensation expense
    
    
    
    
    
    
    239
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    239Exercise of stock options
    
    
    
    
    
    
    32
    
    
    
    166
    
    
    
    
    
    
    
    
    
    
    
    198Balance, March 31, 2008
    
    $
    6,735
    
    
    $
    3,988
    
    
    
    ($26,614
    )
    
    
    ($2,674
    )
    
    $
    148,857
    
    
    $
    130,292
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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
  Statements of Operations
  Lones
    
    March 31, 2008
    
    June 30, 2007Loans are summarized as follows:Mortgage loans:Residential:1-4 Family
    
    $
    808,534
    
    
    $
    859,972Multifamily
    
    
    32,486
    
    
    
    32,474Commercial
    
    
    117,213
    
    
    
    112,287Other
    
    
    15,792
    
    
    
    18,321974,025
    
    
    
    1,023,054Consumer loans
    
    
    174,453
    
    
    
    173,506Commercial business loans
    
    
    40,999
    
    
    
    45,184Loans on savings accounts
    
    
    5,950
    
    
    
    5,1621,195,4271,246,906Less: Loans in process
    
    
    56
    
    
    
    98Allowance for loan losses
    
    
    15,044
    
    
    
    14,189Unamortized premiums and deferred loan fees
    
    
    (1,655
    )
    
    
    (1,778
    )Loans, net
    
    $
    1,181,982
    
    
    $
    1,234,397
   2008
    
    
    2007Beginning balance
    
    $
    14,189
    
    
    $
    14,907Provision for losses  mortgage loans
    
    
    1,140
    
    
    
    384Provision for losses  consumer loans
    
    
    162
    
    
    
    174Provision for losses  commercial loans
    
    
    65
    
    
    
    54Loans recovered
    
    
    268
    
    
    
    30Loans charged off
    
    
    (780
    )
    
    
    (745
    )Ending balance
    
    $
    15,044
    
    
    $
    14,804
 Comprehensive Income
  7




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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
  Earnings Per Share (EPS)
  Three months ended
    
    
    Nine months endedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Numerator for basic and diluted EPS:Net income (in 000s)
    
    $
    3,526
    
    
    $
    2,872
    
    
    $
    10,745
    
    
    $
    9,809Denominator:Weighted average shares for basic EPS
    
    
    5,474,632
    
    
    
    5,694,439
    
    
    
    5,514,962
    
    
    
    5,684,259Number of dilutive stock options
    
    
    35,343
    
    
    
    54,976
    
    
    
    44,241
    
    
    
    67,142Weighted average shares for dilutive EPS
    
    
    5,509,975
    
    
    
    5,749,415
    
    
    
    5,559,203
    
    
    
    5,751,401Net income per share:Basic
    
    $
    0.65
    
    
    $
    0.51
    
    
    $
    1.95
    
    
    $
    1.73Diluted
    
    $
    0.64
    
    
    $
    0.50
    
    
    $
    1.93
    
    
    $
    1.71
 Stock Based Compensation
  Investments U.S. Government and Agency Obligations.
 Corporate Debt.
 8




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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
  Marketable Equity Securities.
 Income Taxes
   New Accounting Pronouncements
    9




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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
      10




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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
      11




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PARKVALE FINANCIAL CORPORATION
 
 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
  Forward-Looking Statements:
    Critical Accounting Policies, Judgments and Estimates:
  12




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(Dollar amounts in thousands, except per share data)
    
    March 31,Balance Sheet Data:
    
    2008
    
    2007Total assets
    
    $
    1,856,807
    
    
    $
    1,825,311Loans, net
    
    
    1,181,982
    
    
    
    1,251,612Interest-earning deposits and federal funds sold
    
    
    144,326
    
    
    
    79,335Total investments
    
    
    420,566
    
    
    
    390,604Deposits
    
    
    1,490,174
    
    
    
    1,444,990FHLB advances
    
    
    201,487
    
    
    
    216,714Shareholders equity
    
    
    130,292
    
    
    
    128,848Book value per share
    
    $
    23.77
    
    
    $
    22.73
  Three Months Ended
    
    Nine Months EndedMarch 31, (1)
    
    March 31, (1)2008
    
    2007
    
    2008
    
    2007Average yield earned on all
interest-earning assets
    
    
    5.68
    %
    
    
    5.56
    %
    
    
    5.75
    %
    
    
    5.53
    %Average rate paid on all interest-bearing liabilities
    
    
    3.42
    
    
    
    3.46
    
    
    
    3.51
    
    
    
    3.44Average interest rate spread
    
    
    2.26
    
    
    
    2.10
    
    
    
    2.24
    
    
    
    2.09Net yield on average interest-earning assets
    
    
    2.32
    
    
    
    2.18
    
    
    
    2.30
    
    
    
    2.16Other expenses to average assets
    
    
    1.55
    
    
    
    1.63
    
    
    
    1.57
    
    
    
    1.51Taxes to pre-tax income
    
    
    30.89
    
    
    
    33.01
    
    
    
    28.34
    
    
    
    32.54Dividend payout ratio
    
    
    34.38
    
    
    
    40.00
    
    
    
    34.20
    
    
    
    35.09Return on average assets
    
    
    0.77
    
    
    
    0.62
    
    
    
    0.78
    
    
    
    0.70Return on average assets without early redemption
of trust preferred securities
    
    
    0.77
    
    
    
    0.71
    
    
    
    0.78
    
    
    
    0.73Return on average equity
    
    
    10.64
    
    
    
    8.93
    
    
    
    10.97
    
    
    
    10.32Return on average equity without early redemption
of trust preferred securities
    
    
    10.64
    
    
    
    10.19
    
    
    
    11.01
    
    
    
    10.75Average equity to average total assets
    
    
    7.22
    
    
    
    6.95
    
    
    
    7.12
    
    
    
    6.81Dividends per share
    
    $
    0.22
    
    
    $
    0.20
    
    
    $
    0.66
    
    
    $
    0.60
 At March 31,2008
    
    2007One year gap to total assets
    
    
    5.95
    %
    
    
    -2.36
    %Intangibles to total equity
    
    
    23.45
    
    
    
    24.42Capital to assets ratio
    
    
    7.02
    
    
    
    7.06Ratio of nonperforming assets to total assets
    
    
    0.78
    
    
    
    0.37Number of full-service offices
    
    
    48
    
    
    
    47
 
 (1)
    
    The applicable income and expense figures have been annualized in calculating the
percentages. 13




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Nonperforming Loans and Foreclosed Real Estate:
  3/31/08
    
    
    12/31/07
    
    
    6/30/07
    
    
    3/31/07Delinquent single-family mortgage loans
    
    $
    5,089
    
    
    $
    3,683
    
    
    $
    2,746
    
    
    $
    1,837Delinquent other loans
    
    
    5,777
    
    
    
    2,057
    
    
    
    1,402
    
    
    
    2,049Total nonperforming loans
    
    
    10,866
    
    
    
    5,740
    
    
    
    4,148
    
    
    
    3,886Total impaired loans
    
    
    989
    
    
    
    1,054
    
    
    
    191
    
    
    
    790Real estate owned, net
    
    
    2,648
    
    
    
    2,563
    
    
    
    1,857
    
    
    
    2,034Total
    
    $
    14,503
    
    
    $
    9,357
    
    
    $
    6,196
    
    
    $
    6,710
      14




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Allowance for Loan Losses
   15




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##### Table of Contents



Liquidity and Capital Resources:
     Tier 1
    
    
    Tier 1
    
    
    Tier 2Core
    
    
    Risk-Based
    
    
    Risk-Based(Dollars in 000s)
    
    Capital
    
    
    Capital
    
    
    CapitalEquity capital (1)
    
    $
    128,434
    
    
    $
    128,434
    
    
    $
    128,434Less non-allowable intangible assets
    
    
    (30,556
    )
    
    
    (30,556
    )
    
    
    (30,556
    )Plus permitted valuation allowances (2)
    
    
    
    
    
    
    
    
    
    
    13,296Plus allowable unrealized holding gains (3)
    
    
    
    
    
    
    
    
    
    
    0Total regulatory capital
    
    
    97,878
    
    
    
    97,878
    
    
    
    111,174Minimum required capital
    
    
    72,928
    
    
    
    42,505
    
    
    
    85,010Excess regulatory capital
    
    $
    24,950
    
    
    $
    55,373
    
    
    $
    26,164Adjusted total assets
    
    $
    1,806,279
    
    
    $
    1,062,619
    
    
    $
    1,062,619Regulatory capital as a percentage
    
    
    5.42
    %
    
    
    9.21
    %
    
    
    10.46
    %Minimum capital required as a percentage
    
    
    4.00
    %
    
    
    4.00
    %
    
    
    8.00
    %Excess regulatory capital as a percentage
    
    
    1.42
    %
    
    
    5.21
    %
    
    
    2.46
    %Well capitalized requirement
    
    
    5.00
    %
    
    
    6.00
    %
    
    
    10.00
    %
 
 (1)
    
    Represents equity capital of the consolidated Bank as reported to the Pennsylvania Department
of Banking and FDIC on Form 041 for the quarter ended March 31, 2008.(2)
    
    Limited to 1.25% of risk adjusted total assets. 16




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##### Table of Contents



(3)
    
    Limited to 45% of pretax net unrealized holding gains.  Results of Operations  Comparison of Three Months Ended March 31, 2008 and 2007:
  Interest Income:
  Interest Expense:
  Net Interest Income:
  17




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##### Table of Contents



Provision for Loan Losses:
   Noninterest Income:
  Noninterest Expense:
  Income Tax Expense:
  18




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##### Table of Contents



Results of Operations  Comparison of Nine Months Ended March 31, 2008 and 2007:
  Interest Income:
  Interest Expense:
  Net Interest Income:
  Provision for Loan Losses:
  Noninterest Income:
  19




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##### Table of Contents



Noninterest Expense:
  Income Tax Expense:
  Impact of Inflation and Changing Prices:
  
   
   20




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##### Table of Contents



PART II  OTHER INFORMATION
     (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 March 31, 2008, Parkvale purchased 10,500 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)January 1-31, 2008
    
    
    10,500
    
    
    $
    27.70
    
    
    
    10,500
    
    
    
    108,581February 1-29, 2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    108,581March 1-31, 2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    108,581
 
 (1)
    
    The repurchase program approved on June 19, 2007 is scheduled to expire on June 30, 2008. Item 3. Defaults Upon Senior Securities
    
    NoneItem 4. Submission of Matters to a Vote of Security Holders
    
    NoneItem 5. Other Information
    
    None
  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.
 21




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SIGNATURES
  Parkvale Financial CorporationDATE: April 29, 2008
    By:
    /s/ Robert J. McCarthy, Jr.Robert J. McCarthy, Jr.President and
Chief Executive OfficerDATE: April 29, 2008
    By:
    /s/ Timothy G. RubritzTimothy G. RubritzVice President, Treasurer and
Chief Financial Officer 22