##### 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 DECEMBER 31, 2007
 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 þ o
 o þ




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##### 



PARKVALE FINANCIAL CORPORATION
  PagePart I. Financial InformationItem 1.Consolidated Statements of Financial Condition as of December 31, 2007 and June 30, 2007
    
    
    3Consolidated Statements of Operations for the six months ended December 31, 2007 and 2006
    
    
    4Consolidated Statements of Cash Flows for the six months ended December 31, 2007 and 2006
    
    
    5-6Consolidated Statements of Shareholders Equity for the six months ended December 31, 2007
    
    
    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
    
    
    20Part II  Other Information
    
    
    20-21Signatures
    
    
    21Exhibits
    
    
    22-24EX-31.1EX-31.2EX-32.1
  2




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PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 December 31,
    
    
    June 30,2007
    
    
    2007ASSETSCash and noninterest-earning deposits
    
    $
    26,792
    
    
    $
    31,248Federal funds sold
    
    
    68,000
    
    
    
    114,000Cash and cash equivalents
    
    
    94,792
    
    
    
    145,248Interest-earning deposits in other banks
    
    
    5,312
    
    
    
    4,803Investment securities available for sale (cost of
$38,550 at December 31 and $30,303 at June 30)
    
    
    35,506
    
    
    
    30,580Investment securities held to maturity (fair value
of $386,505 at December 31 and $347,022 at June 30)
    
    
    391,823
    
    
    
    349,363Loans, net of allowance of $14,819 at December 31
and $14,189 at June 30
    
    
    1,207,837
    
    
    
    1,234,397Foreclosed real estate, net
    
    
    2,563
    
    
    
    1,857Office properties and equipment, net
    
    
    19,067
    
    
    
    17,387Goodwill
    
    
    25,634
    
    
    
    25,634Intangible assets
    
    
    5,149
    
    
    
    5,604Prepaid expenses and other assets
    
    
    40,825
    
    
    
    29,358Total assets
    
    $
    1,828,508
    
    
    $
    1,844,231LIABILITIES AND SHAREHOLDERS EQUITYLIABILITIESDeposits
    
    $
    1,458,688
    
    
    $
    1,469,084Advances from Federal Home Loan Bank
    
    
    211,543
    
    
    
    211,658Trust preferred securities
    
    
    
    
    
    
    7,200Other debt
    
    
    17,727
    
    
    
    13,106Advance payments from borrowers for taxes and insurance
    
    
    7,099
    
    
    
    7,665Other liabilities
    
    
    5,371
    
    
    
    5,848Total liabilities
    
    
    1,700,428
    
    
    
    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
    
    
    3,928
    
    
    
    3,717Treasury stock at cost (1,275,418 shares at December 31
and 1,122,546 at June 30)
    
    
    (27,187
    )
    
    
    (22,695
    )Accumulated other comprehensive income
    
    
    (1,933
    )
    
    
    176Retained earnings
    
    
    146,537
    
    
    
    141,737Total shareholders equity
    
    
    128,080
    
    
    
    129,670Total liabilities and shareholders equity
    
    $
    1,828,508
    
    
    $
    1,844,231
 3




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PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
 Three months ended
    
    
    Six months endedDecember 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Interest income:Loans
    
    $
    18,278
    
    
    $
    17,879
    
    
    $
    36,676
    
    
    $
    35,555Investments
    
    
    5,402
    
    
    
    4,829
    
    
    
    10,382
    
    
    
    9,523Federal funds sold
    
    
    1,296
    
    
    
    1,974
    
    
    
    2,732
    
    
    
    3,533Total interest income
    
    
    24,976
    
    
    
    24,682
    
    
    
    49,790
    
    
    
    48,611Interest expense:Deposits
    
    
    12,205
    
    
    
    11,617
    
    
    
    24,166
    
    
    
    22,292Borrowings
    
    
    2,814
    
    
    
    2,915
    
    
    
    5,594
    
    
    
    5,825Trust preferred securities
    
    
    153
    
    
    
    745
    
    
    
    317
    
    
    
    1,498Total interest expense
    
    
    15,172
    
    
    
    15,277
    
    
    
    30,077
    
    
    
    29,615Net interest income
    
    
    9,804
    
    
    
    9,405
    
    
    
    19,713
    
    
    
    18,996Provision for loan losses
    
    
    288
    
    
    
    104
    
    
    
    991
    
    
    
    308Net interest income after
provision for losses
    
    
    9,516
    
    
    
    9,301
    
    
    
    18,722
    
    
    
    18,688Noninterest Income:Service charges on deposit accounts
    
    
    1,778
    
    
    
    1,725
    
    
    
    3,555
    
    
    
    3,540Other fees and service charges
    
    
    363
    
    
    
    286
    
    
    
    650
    
    
    
    616Gain on sale of assets
    
    
    
    
    
    
    133
    
    
    
    
    
    
    
    124Other
    
    
    780
    
    
    
    385
    
    
    
    1,463
    
    
    
    877Total noninterest income
    
    
    2,921
    
    
    
    2,529
    
    
    
    5,668
    
    
    
    5,157Noninterest Expenses:Compensation and employee benefits
    
    
    4,154
    
    
    
    3,772
    
    
    
    8,289
    
    
    
    7,535Office occupancy
    
    
    1,083
    
    
    
    1,164
    
    
    
    2,211
    
    
    
    2,349Marketing
    
    
    182
    
    
    
    139
    
    
    
    355
    
    
    
    261FDIC insurance
    
    
    43
    
    
    
    44
    
    
    
    84
    
    
    
    89Office supplies, telephone and postage
    
    
    497
    
    
    
    472
    
    
    
    954
    
    
    
    951Early extinguishment of debt
    
    
    62
    
    
    
    
    
    
    
    62
    
    
    
    Other
    
    
    1,267
    
    
    
    1,153
    
    
    
    2,543
    
    
    
    2,406Total noninterest expenses
    
    
    7,288
    
    
    
    6,744
    
    
    
    14,498
    
    
    
    13,591Income before income taxes
    
    
    5,149
    
    
    
    5,086
    
    
    
    9,892
    
    
    
    10,254Income tax expense
    
    
    1,579
    
    
    
    1,630
    
    
    
    2,673
    
    
    
    3,317Net income
    
    $
    3,570
    
    
    $
    3,456
    
    
    $
    7,219
    
    
    $
    6,937Net income per share:Basic
    
    $
    0.65
    
    
    $
    0.61
    
    
    $
    1.30
    
    
    $
    1.22Diluted
    
    $
    0.64
    
    
    $
    0.60
    
    
    $
    1.29
    
    
    $
    1.21
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PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Six months endedDecember 31,2007
    
    
    2006Cash flows from operating activities:Interest received
    
    $
    49,675
    
    
    $
    48,224Loan fees received (premiums paid)
    
    
    59
    
    
    
    (70
    )Disbursements of student loans
    
    
    (705
    )
    
    
    (890
    )Proceeds from sales of student loans
    
    
    248
    
    
    
    286Other fees and commissions received
    
    
    5,145
    
    
    
    4,776Interest paid
    
    
    (30,236
    )
    
    
    (29,762
    )Cash paid to suppliers and others
    
    
    (11,320
    )
    
    
    (10,321
    )Income taxes paid
    
    
    (4,105
    )
    
    
    (3,802
    )Net cash provided by operating activities
    
    
    8,761
    
    
    
    8,441Cash flows from investing activities:Proceeds from sale of investment securities available for sale
    
    
    1,399
    
    
    
    1,594Proceeds from maturities of investment securities
    
    
    65,404
    
    
    
    82,072Purchase of investment securities held to maturity
    
    
    (131,361
    )
    
    
    (75,255
    )(Purchase) of deposits in other banks
    
    
    (509
    )
    
    
    (145
    )Purchase of loans
    
    
    (27,003
    )
    
    
    (81,870
    )Principal collected on loans
    
    
    160,942
    
    
    
    142,984Loans made to customers, net of loans in process
    
    
    (105,359
    )
    
    
    (77,161
    )Other
    
    
    (2,318
    )
    
    
    (1,187
    )Net cash (used in) provided by investing activities
    
    
    (38,805
    )
    
    
    (8,968
    )Cash flows from financing activities:Net (decrease) in checking and savings accounts
    
    
    (4,180
    )
    
    
    (21,542
    )Net (decrease) increase in certificates of deposit
    
    
    (6,135
    )
    
    
    22,283Repayment of trust preferred securities
    
    
    (7,200
    )
    
    
    Repayment of FHLB advances
    
    
    (12
    )
    
    
    (5,012
    )Net increase in other borrowings
    
    
    4,621
    
    
    
    4,492(Decrease) in borrowers advances for taxes and insurance
    
    
    (566
    )
    
    
    (673
    )Cash dividends paid
    
    
    (2,454
    )
    
    
    (2,270
    )Proceeds from exercise of stock options
    
    
    172
    
    
    
    170Payment for treasury stock
    
    
    (4,658
    )
    
    
    Net cash used in financing activities
    
    
    (20,412
    )
    
    
    (2,552
    )Net (decrease) in cash and cash equivalents
    
    
    (50,456
    )
    
    
    (3,079
    )Cash and cash equivalents at beginning of period
    
    
    145,248
    
    
    
    129,676Cash and cash equivalents at end of period
    
    $
    94,792
    
    
    $
    126,597
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Six months endedDecember 31,2007
    
    
    2006Reconciliation of net income to net cash provided
by operating activities:Net income
    
    $
    7,219
    
    
    $
    6,937Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation and amortization
    
    
    1,092
    
    
    
    1,268Accretion and amortization of loan fees and discounts
    
    
    (88
    )
    
    
    158Loan fees collected and deferred and (premiums paid)
    
    
    (15
    )
    
    
    (233
    )Provision for loan losses
    
    
    991
    
    
    
    308Gain on sale of assets
    
    
    
    
    
    
    (124
    )(Increase) in accrued interest receivable
    
    
    (191
    )
    
    
    (644
    )(Increase) decrease in other assets
    
    
    (1,027
    )
    
    
    621(Decrease) increase in accrued interest payable
    
    
    (72
    )
    
    
    222Increase (decrease) in other liabilities
    
    
    852
    
    
    
    (72
    )Total adjustments
    
    
    1,542
    
    
    
    1,504Net cash provided by operating activities
    
    $
    8,761
    
    
    $
    8,441
  
 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, six months ended December 31, 2007
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,219
    
    
    
    7,219Accumulated other comprehensive income:Change in unrealized gain (loss) on securities,
net of deferred tax benefit of ($1,212)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,109
    )
    
    
    
    
    
    
    (2,109
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,110Treasury stock purchased
    
    
    
    
    
    
    
    
    
    
    (4,658
    )
    
    
    
    
    
    
    
    
    
    
    (4,658
    )Dividends declared on common stock at
$0.44 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,419
    )
    
    
    (2,419
    )Exercise of stock options
    
    
    
    
    
    
    211
    
    
    
    166
    
    
    
    
    
    
    
    
    
    
    
    377Balance, December 31, 2007
    
    $
    6,735
    
    
    $
    3,928
    
    
    
    ($27,187
    )
    
    
    ($1,933
    )
    
    $
    146,537
    
    
    $
    128,080
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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 Statements of Operations
  Loans
  December 31, 2007
    
    June 30, 2007Mortgage loans:Residential:1-4 Family
    
    $
    834,673
    
    
    $
    859,972Multifamily
    
    
    31,624
    
    
    
    32,474Commercial
    
    
    115,205
    
    
    
    112,287Other
    
    
    14,924
    
    
    
    18,321996,426
    
    
    
    1,023,054Consumer loans
    
    
    175,713
    
    
    
    173,506Commercial business loans
    
    
    43,640
    
    
    
    45,184Loans on savings accounts
    
    
    5,154
    
    
    
    5,1621,220,933
    
    
    
    1,246,906Less: Loans in process
    
    
    24
    
    
    
    98Allowance for loan losses
    
    
    14,819
    
    
    
    14,189Unamortized premiums and deferred
loan fees
    
    
    (1,747
    )
    
    
    (1,778
    )Loans, net
    
    $
    1,207,837
    
    
    $
    1,234,397
   2007
    
    
    2006Beginning balance
    
    $
    14,189
    
    
    $
    14,907Provision for losses  mortgage loans
    
    
    779
    
    
    
    132Provision for losses  consumer loans
    
    
    147
    
    
    
    166Provision for losses  commercial loans
    
    
    65
    
    
    
    10Loans recovered
    
    
    110
    
    
    
    20Loans charged off
    
    
    (471
    )
    
    
    (382
    )Ending balance
    
    $
    14,819
    
    
    $
    14,853
 Comprehensive Income
  7




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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 Earnings Per Share (EPS)
  Three months ended
    
    
    Six months endedDecember 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Numerator for basic and diluted earnings
per share:Net income (in 000s)
    
    $
    3,570
    
    
    $
    3,456
    
    
    $
    7,219
    
    
    $
    6,937Denominator:Weighted average shares
for basic earnings per share
    
    
    5,496,911
    
    
    
    5,682,098
    
    
    
    5,535,127
    
    
    
    5,679,169Effect of dilutive stock options
    
    
    48,860
    
    
    
    76,228
    
    
    
    48,689
    
    
    
    73,225Weighted average shares for
dilutive earnings per share
    
    
    5,545,771
    
    
    
    5,758,326
    
    
    
    5,583,816
    
    
    
    5,752,394Net income per share: Basic
    
    $
    0.65
    
    
    $
    0.61
    
    
    $
    1.30
    
    
    $
    1.22Diluted
    
    $
    0.64
    
    
    $
    0.60
    
    
    $
    1.29
    
    
    $
    1.21
 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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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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Balance Sheet Data:
 December 31,2007
    
    2006Total assets
    
    $
    1,828,508
    
    
    $
    1,863,501Loans, net
    
    
    1,207,837
    
    
    
    1,231,769Interest-earning deposits and federal funds sold
    
    
    73,312
    
    
    
    101,952Total investments
    
    
    427,329
    
    
    
    417,103Savings deposits
    
    
    1,458,688
    
    
    
    1,452,437FHLB advances
    
    
    211,543
    
    
    
    216,770Shareholders equity
    
    
    128,080
    
    
    
    127,799Book value per share
    
    $
    23.46
    
    
    $
    22.45
  Three Months Ended
    
    Six Months EndedDecember 31, (1)
    
    December 31, (1)2007
    
    2006
    
    2007
    
    2006Average yield earned on all
interest-earning assets
    
    
    5.79
    %
    
    
    5.55
    %
    
    
    5.77
    %
    
    
    5.50
    %Average rate paid on all
interest-bearing liabilities
    
    
    3.58
    %
    
    
    3.51
    %
    
    
    3.56
    %
    
    
    3.43
    %Average interest rate spread
    
    
    2.21
    %
    
    
    2.04
    %
    
    
    2.21
    %
    
    
    2.07
    %Net yield on average
interest-earning assets
    
    
    2.27
    %
    
    
    2.12
    %
    
    
    2.29
    %
    
    
    2.15
    %Other expenses to average assets
    
    
    1.59
    %
    
    
    1.44
    %
    
    
    1.58
    %
    
    
    1.46
    %Taxes to pre-tax income
    
    
    30.67
    %
    
    
    32.05
    %
    
    
    27.02
    %
    
    
    32.35
    %Dividend payout ratio
    
    
    34.18
    %
    
    
    33.32
    %
    
    
    34.03
    %
    
    
    33.17
    %Return on average assets
    
    
    0.78
    %
    
    
    0.74
    %
    
    
    0.79
    %
    
    
    0.74
    %Return on average equity
    
    
    11.01
    %
    
    
    10.89
    %
    
    
    11.14
    %
    
    
    11.03
    %Average equity to average total assets
    
    
    7.06
    %
    
    
    6.76
    %
    
    
    7.07
    %
    
    
    6.74
    %Dividends per share
    
    $
    0.22
    
    
    $
    0.20
    
    
    $
    0.44
    
    
    $
    0.40
 At December 31,2007
    
    2006One year gap to total assets
    
    
    10.75
    %
    
    
    -2.72
    %Intangibles to total equity
    
    
    24.03
    %
    
    
    24.80
    %Capital to assets ratio
    
    
    7.00
    %
    
    
    6.86
    %Ratio of nonperforming assets to total assets
    
    
    0.51
    %
    
    
    0.39
    %Number 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:
 
 12/31/07
    
    
    6/30/07
    
    
    12/31/06Delinquent single-family mortgage loans
    
    $
    3,683
    
    
    $
    2,746
    
    
    $
    2,827Delinquent other loans
    
    
    2,057
    
    
    
    1,402
    
    
    
    2,380Total nonperforming loans
    
    
    5,740
    
    
    
    4,148
    
    
    
    5,207Total impaired loans
    
    
    1,054
    
    
    
    191
    
    
    
    18Real estate owned, net
    
    
    2,563
    
    
    
    1,857
    
    
    
    2,036Total
    
    $
    9,357
    
    
    $
    6,196
    
    
    $
    7,261
    14




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Allowance for Loan Losses
   Liquidity and Capital Resources:
    15




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Tier 1
    
    
    Tier 1
    
    
    Tier 2Core
    
    
    Risk-Based
    
    
    Risk-BasedCapital
    
    
    Capital
    
    
    CapitalEquity capital (1)
    
    $
    125,761
    
    
    $
    125,761
    
    
    $
    125,761Less non-allowable intangible assets
    
    
    (30,783
    )
    
    
    (30,783
    )
    
    
    (30,783
    )Less unrealized securities gains
    
    
    1,256
    
    
    
    1,256
    
    
    
    1,256Plus permitted valuation allowances (2)
    
    
    
    
    
    
    
    
    
    
    13,384Total regulatory capital
    
    
    96,234
    
    
    
    96,234
    
    
    
    109,618Minimum required capital
    
    
    73,007
    
    
    
    42,798
    
    
    
    85,596Excess regulatory capital
    
    $
    23,227
    
    
    $
    53,436
    
    
    $
    24,022Adjusted total assets
    
    $
    1,825,175
    
    
    $
    1,069,954
    
    
    $
    1,069,954Regulatory capital as a percentage
    
    
    5.27
    %
    
    
    8.99
    %
    
    
    10.25
    %Minimum capital required as a percentage
    
    
    4.00
    %
    
    
    4.00
    %
    
    
    8.00
    %Excess regulatory capital as a percentage
    
    
    1.27
    %
    
    
    4.99
    %
    
    
    2.25
    %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 December 31, 2007.(2)
    
    Limited to 1.25% of risk adjusted total assets.  Results of Operations  Comparison of Three Months Ended December 31, 2007 and 2006:
  16




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##### Table of Contents



Interest Income:
  Interest Expense:
   Net Interest Income:
  Provision for Loan Losses:
   17




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##### Table of Contents



Noninterest Income:
  Noninterest Expense:
  Income Tax Expense:
  Results of Operations  Comparison of Six Months Ended December 31, 2007 and 2006:
  Interest Income:
  18




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##### Table of Contents



Interest Expense:
  Net Interest Income:
  Provision for Loan Losses:
  Noninterest Income:
  Noninterest Expense:
  19




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##### Table of Contents



Income Tax Expense:
  Impact of Inflation and Changing Prices:
  
   
   
 PART II  OTHER INFORMATION
      (a)
    
    No equity securities were sold by the Corporation during the period covered by this report
that
 20




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##### Table of Contents



were not registered under the Securities Act of 1933.
 (b)
    
    Not applicable(c)
    
    During the quarter ended December 31, 2007, Parkvale purchased 75,400 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)October 1-31, 2007
    
    
    9,700
    
    
    $
    29.00
    
    
    
    9,700
    
    
    
    184,781November 1-30, 2007
    
    
    34,200
    
    
    $
    28.93
    
    
    
    34,200
    
    
    
    150,581December 1-31, 2007
    
    
    31,500
    
    
    $
    28.36
    
    
    
    31,500
    
    
    
    119,081
 
 (1)
    
    The repurchase program approved on June 19, 2007 is scheduled to expire on June 30, 2008.         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: January 25, 2008
    By:
    /s/ Robert J. McCarthy, Jr.Robert J. McCarthy, Jr.President and
Chief Executive Officer DATE: January 25, 2008
    By:
    /s/ Timothy G. RubritzTimothy G. RubritzVice President, Treasurer and
Chief Financial Officer 21