##### 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, 2005
 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(Address of principal executive offices; zip code)
  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, 2005
and June 30, 2005
    
    
    3Consolidated Statements of Operations for the three and six months ended
December 31, 2005 and 2004
    
    
    4Consolidated Statements of Cash Flows for the six months ended
December 31, 2005 and 2004
    
    
    5-6Consolidated Statements of Shareholders Equity for the six months
December 31, 2005
    
    
    6Notes to Interim Consolidated Financial Statements
    
    
    7-10Item 2.Managements Discussion and Analysis of Financial Condition and
Results of Operations
    
    
    11-17Item 3.Quantitative and Qualitative Disclosures about Market Risk
    
    
    17Item 4.Controls and Procedures
    
    
    17Part II  Other Information
    
    
    18Signatures
    
    
    19Exhibits
    
    
    20-22EX-31.1EX-31.2EX-32.1
  2




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PARKVALE FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
  December 31,
    
    
    June 30,2005
    
    
    2005ASSETSCash and noninterest earning deposits
    
    $
    34,306
    
    
    $
    26,040Federal funds sold
    
    
    52,000
    
    
    
    81,000Cash and cash equivalents
    
    
    86,306
    
    
    
    107,040Interest-earning deposits in other banks
    
    
    6,738
    
    
    
    9,474Investment securities available for sale (cost of
$26,026 at December 31 and $24,682 at June 30)
    
    
    26,070
    
    
    
    25,022Investment securities held to maturity (fair value
of $417,624 at December 31 and $459,645 at June 30)
    
    
    422,179
    
    
    
    460,080Loans, net of allowance of $15,008 at December 31
and $15,188 at June 30
    
    
    1,228,728
    
    
    
    1,198,070Foreclosed real estate, net
    
    
    1,092
    
    
    
    1,654Office properties and equipment, net
    
    
    13,096
    
    
    
    13,053Goodwill
    
    
    25,634
    
    
    
    25,634Intangible assets
    
    
    7,010
    
    
    
    7,487Prepaid expenses and other assets
    
    
    27,436
    
    
    
    28,330Total Assets
    
    $
    1,844,289
    
    
    $
    1,875,844LIABILITIES AND SHAREHOLDERS EQUITYLIABILITIESDeposits
    
    $
    1,435,680
    
    
    $
    1,478,335Advances from Federal Home Loan Bank
    
    
    226,997
    
    
    
    217,141Trust preferred securities
    
    
    32,200
    
    
    
    32,200Other debt
    
    
    20,105
    
    
    
    23,116Escrow for taxes and insurance
    
    
    6,073
    
    
    
    6,511Other liabilities
    
    
    6,093
    
    
    
    5,570Total Liabilities
    
    
    1,727,148
    
    
    
    1,762,873SHAREHOLDERS 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
    
    
    3,540
    
    
    
    3,536Treasury stock at cost (1,102,564 shares at December 31
and 1,112,948 at June 30)
    
    
    (21,584
    )
    
    
    (21,680
    )Accumulated other comprehensive income
    
    
    71
    
    
    
    216Retained earnings
    
    
    128,379
    
    
    
    124,164Total Shareholders Equity
    
    
    117,141
    
    
    
    112,971Total Liabilities and Shareholders Equity
    
    $
    1,844,289
    
    
    $
    1,875,844
 3




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PARKVALE FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
  Three months ended
    
    
    Six months endedDecember 31,
    
    
    December 31,2005
    
    
    2004
    
    
    2005
    
    
    2004Interest income:Loans
    
    $
    16,765
    
    
    $
    12,941
    
    
    $
    33,106
    
    
    $
    25,975Investments
    
    
    4,537
    
    
    
    4,264
    
    
    
    9,073
    
    
    
    8,491Federal funds sold
    
    
    701
    
    
    
    377
    
    
    
    1,476
    
    
    
    620Total interest income
    
    
    22,003
    
    
    
    17,582
    
    
    
    43,655
    
    
    
    35,086Interest expense:Savings deposits
    
    
    8,921
    
    
    
    7,064
    
    
    
    17,646
    
    
    
    14,225Borrowings
    
    
    2,990
    
    
    
    2,486
    
    
    
    5,889
    
    
    
    4,845Trust preferred securities
    
    
    632
    
    
    
    363
    
    
    
    1,224
    
    
    
    702Total interest expense
    
    
    12,543
    
    
    
    9,913
    
    
    
    24,759
    
    
    
    19,772Net interest income
    
    
    9,460
    
    
    
    7,669
    
    
    
    18,896
    
    
    
    15,314Provision for loan losses
    
    
    146
    
    
    
    54
    
    
    
    282
    
    
    
    111Net interest income after
provision for losses
    
    
    9,314
    
    
    
    7,615
    
    
    
    18,614
    
    
    
    15,203Noninterest Income:Service charges on deposit accounts
    
    
    1,576
    
    
    
    1,436
    
    
    
    3,165
    
    
    
    2,690Other fees and service charges
    
    
    307
    
    
    
    169
    
    
    
    646
    
    
    
    490Gain on sale of assets
    
    
    24
    
    
    
    
    
    
    
    24
    
    
    
    14Other
    
    
    342
    
    
    
    269
    
    
    
    697
    
    
    
    583Total other income
    
    
    2,249
    
    
    
    1,874
    
    
    
    4,532
    
    
    
    3,777Noninterest Expenses:Compensation and employee benefits
    
    
    3,667
    
    
    
    3,053
    
    
    
    7,365
    
    
    
    6,279Office occupancy
    
    
    1,285
    
    
    
    980
    
    
    
    2,547
    
    
    
    1,989Marketing
    
    
    146
    
    
    
    102
    
    
    
    285
    
    
    
    185FDIC insurance
    
    
    48
    
    
    
    46
    
    
    
    98
    
    
    
    93Office supplies, telephone and postage
    
    
    456
    
    
    
    399
    
    
    
    907
    
    
    
    754Other
    
    
    1,188
    
    
    
    956
    
    
    
    2,428
    
    
    
    1,920Total other expenses
    
    
    6,790
    
    
    
    5,536
    
    
    
    13,630
    
    
    
    11,220Income before income taxes
    
    
    4,773
    
    
    
    3,953
    
    
    
    9,516
    
    
    
    7,760Income tax expense
    
    
    1,533
    
    
    
    1,241
    
    
    
    3,048
    
    
    
    2,420Net income
    
    $
    3,240
    
    
    $
    2,712
    
    
    $
    6,468
    
    
    $
    5,340Net income per share:Basic
    
    $
    0.58
    
    
    $
    0.49
    
    
    $
    1.15
    
    
    $
    0.96Diluted
    
    $
    0.57
    
    
    $
    0.48
    
    
    $
    1.14
    
    
    $
    0.95
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PARKVALE FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
  Six months endedDecember 31,2005
    
    
    2004Cash flows from operating activities:Interest received
    
    $
    44,316
    
    
    $
    36,333Loan fees received (premiums paid)
    
    
    (107
    )
    
    
    (194
    )Other fees and commissions received
    
    
    4,274
    
    
    
    3,526Interest paid
    
    
    (24,857
    )
    
    
    (19,742
    )Cash paid to suppliers and others
    
    
    (10,823
    )
    
    
    (10,278
    )Income taxes paid
    
    
    (3,102
    )
    
    
    (1,470
    )Net cash provided by operating activities
    
    
    9,701
    
    
    
    8,175Cash flows from investing activities:Proceeds from sale of investment securities available for sale
    
    
    1,411
    
    
    
    Proceeds from maturities of investment securities
    
    
    65,002
    
    
    
    159,570Purchase of investment securities held to maturity
    
    
    (30,147
    )
    
    
    (132,133
    )Maturity of deposits in other banks
    
    
    2,736
    
    
    
    659Purchase of loans
    
    
    (95,747
    )
    
    
    (61,997
    )Proceeds from sales of loans
    
    
    1,395
    
    
    
    1,643Principal collected on loans
    
    
    132,476
    
    
    
    167,287Loans made to customers, net of loans in process
    
    
    (68,441
    )
    
    
    (79,105
    )Payment for acquisition of Advance Financial, net of cash acquired
    
    
    
    
    
    
    (12,780
    )Other
    
    
    (840
    )
    
    
    768Net cash provided by investing activities
    
    
    7,845
    
    
    
    43,912Cash flows from financing activities:Net (decrease) increase in checking and savings accounts
    
    
    (22,395
    )
    
    
    13,094Net (decrease) in certificates of deposit
    
    
    (20,179
    )
    
    
    (27,515
    )Proceeds from FHLB advances
    
    
    10,000
    
    
    
    10,000Repayment of FHLB advances
    
    
    (42
    )
    
    
    (97
    )Net (decrease) increase in other borrowings
    
    
    (3,012
    )
    
    
    3,541Decrease in borrowers advances for taxes and insurance
    
    
    (438
    )
    
    
    (1,047
    )Cash dividends paid
    
    
    (2,251
    )
    
    
    (2,233
    )Proceeds from stock option exercise
    
    
    195
    
    
    
    165Acquisition of treasury stock
    
    
    (158
    )
    
    
    (70
    )Net cash used in financing activities
    
    
    (38,280
    )
    
    
    (4,162
    )Net (decrease) increase in cash and cash equivalents
    
    
    (20,734
    )
    
    
    47,760Cash and cash equivalents at beginning of period
    
    
    107,040
    
    
    
    37,814Cash and cash equivalents at end of period
    
    $
    86,306
    
    
    $
    85,574
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Six months endedDecember 31,2005
    
    
    2004Net income
    
    $
    6,468
    
    
    $
    5,340Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation and amortization
    
    
    1,262
    
    
    
    821Accretion and amortization of loan fees and discounts
    
    
    527
    
    
    
    745Loan fees collected and deferred and (premiums paid)
    
    
    (290
    )
    
    
    285Provision for loan losses
    
    
    282
    
    
    
    111Gain on sale of assets
    
    
    (24
    )
    
    
    (14
    )Decrease (increase) in accrued interest receivable
    
    
    6
    
    
    
    (1,226
    )Decrease (increase) in other assets
    
    
    917
    
    
    
    (1,041
    )Increase in accrued interest payable
    
    
    582
    
    
    
    3,123(Decrease) increase in other liabilities
    
    
    (29
    )
    
    
    31Total adjustments
    
    
    3,233
    
    
    
    2,835Net cash provided by operating activities
    
    $
    9,701
    
    
    $
    8,175Acquisition of Advance Financial Bancorp:Cash and cash equivalents
    
    
    
    
    
    $
    23,190Investments
    
    
    
    
    
    
    27,881Loans
    
    
    
    
    
    
    252,770Net other assets and liabilities
    
    
    
    
    
    
    6,186Deposits
    
    
    
    
    
    
    (268,703
    )FHLB Advances and trust preferred securities
    
    
    
    
    
    
    (28,544
    )Cash paid to acquire AFB
    
    
    
    
    
    $
    12,780
  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, 2005
    
    $
    6,735
    
    
    $
    3,536
    
    
    
    ($21,680
    )
    
    $
    216
    
    
    $
    124,164
    
    
    $
    112,971Net income, six months ended December 31, 2005
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,468
    
    
    
    6,468Accumulated other comprehensive income:Change in unrealized gain on securities,
net of deferred tax benefit of $(91)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (130
    )Reclassification adjustment, net of taxes of $(6)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15
    )
    
    
    
    
    
    
    (145
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,323Treasury stock purchased
    
    
    
    
    
    
    
    
    
    
    (158
    )
    
    
    
    
    
    
    
    
    
    
    (158
    )Dividends on common stock at $0.40 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,253
    )
    
    
    (2,253
    )Exercise of stock options
    
    
    
    
    
    
    4
    
    
    
    254
    
    
    
    
    
    
    
    
    
    
    
    258Balance, December 31, 2005
    
    $
    6,735
    
    
    $
    3,540
    
    
    
    ($21,584
    )
    
    $
    71
    
    
    $
    128,379
    
    
    $
    117,141
 6




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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 Statements of Operations
 Loans
 December 31,
    
    
    June 30,2005
    
    
    2005Mortgage loans:Residential:1-4 Family
    
    $
    841,275
    
    
    $
    807,753Multifamily
    
    
    28,927
    
    
    
    29,920Commercial
    
    
    108,006
    
    
    
    109,146Other
    
    
    22,615
    
    
    
    22,4481,000,823
    
    
    
    969,267Consumer loans
    
    
    186,001
    
    
    
    187,807Commercial business loans
    
    
    48,988
    
    
    
    48,302Loans on savings accounts
    
    
    5,531
    
    
    
    5,6111,241,343
    
    
    
    1,210,987Less: Loans in process
    
    
    25
    
    
    
    418Allowance for loan losses
    
    
    15,008
    
    
    
    15,188Unamortized premiums and deferred loan fees
    
    
    (2,418
    )
    
    
    (2,689
    )Loans, net
    
    $
    1,228,728
    
    
    $
    1,198,070
   2005
    
    
    2004Beginning balance
    
    $
    15,188
    
    
    $
    13,808Allowance for loan losses from Advance acquisition
    
    
    
    
    
    
    1,897Provision for losses  mortgage loans
    
    
    124
    
    
    
    41Provision (credit) for losses  consumer loans
    
    
    85
    
    
    
    (8
    )Provision for losses  commercial loans
    
    
    73
    
    
    
    78Loans recovered
    
    
    60
    
    
    
    5Loans charged off
    
    
    (522
    )
    
    
    (210
    )Ending balance
    
    $
    15,008
    
    
    $
    15,611
 Comprehensive Income
 7




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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 Earnings Per Share (EPS)
 Three months ended
    
    
    Six months endedDecember 31,
    
    
    December 31,2005
    
    
    2004
    
    
    2005
    
    
    2004Numerator for basic and diluted earnings per share:Net income (in 000s)
    
    $
    3,240
    
    
    $
    2,712
    
    
    $
    6,468
    
    
    $
    5,340Denominator:Weighted average shares
for basic earnings per share
    
    
    5,630,707
    
    
    
    5,581,626
    
    
    
    5,629,424
    
    
    
    5,580,861Effect of dilutive employee stock options
    
    
    59,575
    
    
    
    74,493
    
    
    
    64,298
    
    
    
    68,594Weighted average shares for
dilutive earnings per share
    
    
    5,690,282
    
    
    
    5,656,119
    
    
    
    5,693,722
    
    
    
    5,649,455Net income per share:Basic
    
    $
    0.58
    
    
    $
    0.49
    
    
    $
    1.15
    
    
    $
    0.96Diluted
    
    $
    0.57
    
    
    $
    0.48
    
    
    $
    1.14
    
    
    $
    0.95
 Stock Based Compensation
 Investments  U.S. Government and Agency Obligations
 8




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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 Corporate Debt
 Marketable Equity Securities
 Acquisition
 9




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##### Table of Contents



NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 New Accounting Pronouncements
  10




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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
 11




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Balance Sheet Data:
 December 31,2005
    
    
    2004Total assets
    
    
    
    
    
    $
    1,844,289
    
    
    $
    1,913,653Loans, net
    
    
    
    
    
    
    1,228,728
    
    
    
    1,241,342Interest-earning deposits and federal funds sold
    
    
    
    
    
    
    58,738
    
    
    
    71,889Total investments
    
    
    
    
    
    
    448,249
    
    
    
    497,781Savings deposits
    
    
    
    
    
    
    1,435,680
    
    
    
    1,536,252FHLB advances
    
    
    
    
    
    
    226,997
    
    
    
    202,340Shareholders equity
    
    
    
    
    
    
    117,141
    
    
    
    107,971Book value per share
    
    
    
    
    
    $
    20.80
    
    
    $
    19.32
  Three Months Ended
    
    
    Six Months EndedDecember 31, (1)
    
    

December 31, (1)2005
    
    
    2004
    
    
    2005
    
    
    2004Average yield earned on all
interest-earning assets
    
    
    5.03
    %
    
    
    4.55
    %
    
    
    4.96
    %
    
    
    4.53
    %Average rate paid on all
interest-bearing liabilities
    
    
    2.92
    %
    
    
    2.66
    %
    
    
    2.86
    %
    
    
    2.65
    %Average interest rate spread
    
    
    2.11
    %
    
    
    1.89
    %
    
    
    2.10
    %
    
    
    1.88
    %Net yield on average
interest-earning assets
    
    
    2.16
    %
    
    
    1.98
    %
    
    
    2.15
    %
    
    
    1.98
    %Other expenses to average assets
    
    
    1.47
    %
    
    
    1.38
    %
    
    
    1.47
    %
    
    
    1.39
    %Taxes to pre-tax income
    
    
    32.12
    %
    
    
    31.39
    %
    
    
    32.03
    %
    
    
    31.19
    %Dividend payout ratio
    
    
    35.12
    %
    
    
    41.70
    %
    
    
    35.21
    %
    
    
    42.31
    %Return on average assets
    
    
    0.70
    %
    
    
    0.67
    %
    
    
    0.70
    %
    
    
    0.66
    %Return on average equity
    
    
    11.11
    %
    
    
    10.09
    %
    
    
    11.19
    %
    
    
    10.00
    %Average equity to average total assets
    
    
    6.33
    %
    
    
    6.68
    %
    
    
    6.23
    %
    
    
    6.63
    %Dividends per share
    
    $
    0.20
    
    
    $
    0.20
    
    
    $
    0.40
    
    
    $
    0.40
 At December 31,2005
    
    
    2004One year gap to total assets
    
    
    -1.23
    %
    
    
    0.44
    %Intangibles to total equity
    
    
    27.87
    %
    
    
    30.94
    %Capital to assets ratio
    
    
    6.35
    %
    
    
    5.64
    %Ratio of nonperforming assets to total assets
    
    
    0.39
    %
    
    
    0.38
    %Number of full-service offices
    
    
    47
    
    
    
    46
 
 (1)
    
    The applicable income and expense figures have been annualized in calculating the
percentages.
 12




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Nonperforming
Loans and Foreclosed Real Estate:
 (Dollar
amounts in 000s)
    
    December 31, 2005
    
    
    June 30, 2005Delinquent single-family mortgage loans
    
    $
    2,845
    
    
    $
    3,535Delinquent other loans
    
    
    3,087
    
    
    
    3,625Total nonperforming loans
    
    
    5,932
    
    
    
    7,160Total impaired loans
    
    
    133
    
    
    
    1Real estate owned, net
    
    
    1,092
    
    
    
    1,654Total
    
    $
    7,157
    
    
    $
    8,815
    Allowance for Loan Losses
 13




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##### Table of Contents



Liquidity and Capital Resources:
   Tier I
    
    
    Tier I
    
    
    Tier IICore
    
    
    Risk-Based
    
    
    Risk-BasedCapital
    
    
    Capital
    
    
    CapitalEquity Capital (1)
    
    $
    147,631
    
    
    $
    147,631
    
    
    $
    147,631Less non-allowable intangible assets
    
    
    (32,644
    )
    
    
    (32,644
    )
    
    
    (32,644
    )Less unrealized securities gains
    
    
    (73
    )
    
    
    (73
    )
    
    
    (73
    )Plus permitted valuation allowances (2)
    
    
    
    
    
    
    
    
    
    
    12,894Plus allowable unrealized holding gains (3)
    
    
    
    
    
    
    
    
    
    
    51Total regulatory capital
    
    
    114,914
    
    
    
    114,914
    
    
    
    127,859Minimum required capital
    
    
    72,201
    
    
    
    41,188
    
    
    
    82,376Excess regulatory capital
    
    $
    42,713
    
    
    $
    73,726
    
    
    $
    45,483Adjusted total assets
    
    $
    1,805,013
    
    
    $
    1,029,702
    
    
    $
    1,029,702Regulatory capital as a percentage
    
    
    6.37
    %
    
    
    11.16
    %
    
    
    12.42
    %Minimum capital required as a percentage
    
    
    4.00
    %
    
    
    4.00
    %
    
    
    8.00
    %Excess regulatory capital as a percentage
    
    
    2.37
    %
    
    
    7.16
    %
    
    
    4.42
    %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, 2005.(2)
    
    Limited to 1.25% of risk adjusted total assets.(3)
    
    Limited to 45% of pretax net unrealized holding gains.
 14




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##### Table of Contents



Results
of Operations  Comparison of Three Months Ended
December 31, 2005 and 2004
 Interest
Income:
 Interest
Expense:
 Provision
for Loan Losses:
 15




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##### Table of Contents



Other
Income:
 Other
Expense:
 Results
of Operations  Comparison of Six Months Ended December 31,
2005 and 2004
 Interest
Income:
 16




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##### Table of Contents



Interest
Expense:
 Provision
for Loan Losses:
 Other
Income:
 Other
Expense:   th
 Impact
of Inflation and Changing Prices:
 
 Item 3.
    
    Quantitative and Qualitative Disclosures About Market RiskQuantitative and qualitative disclosures about market risk are presented at June 30, 2005 in
Item 7A of Parkvale Financial Corporations Form 10-K, filed with the SEC on September 13,
2005.
 17




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##### Table of Contents



Management believes that there have been no material changes in Parkvales market risk since
June 30, 2005.

Item 4.
    
    Controls and ProceduresDisclosure controls and procedures are monitored and supervised by Parkvales management,
including the CEO and CFO, regarding the effectiveness of the design and operation of
Parkvales disclosure controls and procedures. Parkvales management, including the CEO and
CFO, concluded that Parkvales disclosure controls and procedures were effective as of
December 31, 2005. There have been no changes in Parkvales internal controls or in other
factors that materially affected, or that are reasonable likely to materially affect
Parkvales internal controls.
 
 PART II  OTHER INFORMATION
 Item 1.
    
    Legal ProceedingsNoneItem 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds(a)
    
    No equity securities were sold by PFC during the period covered by this report that were not
registered under the Securities Act of 1933.(b)
    
    Not Applicable(c)
    
    During the quarter ended December 31, 2005, Parkvale purchased 2,405 shares at an average price
per share of $27.42.
  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, 2005
    
    
    2,405
    
    
    $
    27.42
    
    
    
    2,405
    
    
    
    209,965November 1-30, 2005
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    209,965December 1-31, 2005
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    209,965
 
  Item 3.
    
    Defaults Upon Senior Securities
    
    NoneItem 4.
    
    Submission of Matters to a Vote of Security Holders
    
    NoneItem 5.
    
    Other Information
    
    None
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##### Table of Contents



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 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: February 7, 2006
    
    By: /s/ Robert J. McCarthy, Jr.Robert J. McCarthy, Jr.President andChief Executive OfficerDATE: February 7, 2006
    
    By: /s/ Timothy G. RubritzTimothy G. RubritzVice President, Treasurer andChief Financial Officer
 19