SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1998
COMMISSION FILE NO: 0-17411
PARKVALE FINANCIAL CORPORATION
-------------------------------
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 25-1556590
- ------------------------ ----------------
(State of incorporation) (I.R.S. Employer
Identification Number)
4220 William Penn Highway, Monroeville, Pennsylvania 15146
- ----------------------------------------------------------
(Address of principal executive offices; zip code)
Registrant's telephone number, including area code: (412) 373-7200
Securities registered pursuant to Section 12(b) of the Act:
Not Applicable
Securities registered pursuant to Section 12(g) of the Act:
Common Stock ($1.00 par value)
------------------------------
Title of Class
Indicate by check mark whether the registrant (1) has filed all reports
required by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
The closing sales price of the Registrant's Common Stock on November 2, 1998
was $21.50 per share.
Number of shares of Common Stock outstanding as of November 2, 1998 was
6,342,845.
PARKVALE FINANCIAL CORPORATION
INDEX
Part I. Financial Information Page
Consolidated Statements of Financial Condition
as of September 30, 1998 and June 30, 1998 3
Consolidated Statements of Operations for the
three months ended September 30, 1998 and 1997 4
Consolidated Statements of Cash Flows for the
three months ended September 30, 1998 and 1997 5-6
Consolidated Statements of Shareholders' Equity
as of September 30, 1998 6
Notes to Unaudited Interim Consolidated Financial
Statements 7-8
Management's Discussion and Analysis of Financial
Condition and Results of Operations 9-12
Part II - Other Information 13
Signatures 13
PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar amounts in thousands, except share data)
September 30, June 30,
ASSETS 1998 1998
----------- --------
Cash and noninterest-earning deposits $ 8,495 $ 9,628
Federal funds sold 141,237 124,900
Interest-earning deposits in other banks 299 475
Investment securities available for sale (cost
of $8,072 at September 30 and $8,060 at June 30) 14,710 14,793
Investment securities held to maturity
(fair value of $83,589 at September 30
and $100,047 at June 30) 82,607 99,199
Loans, net of allowance of $13,242 at
September 30 and $13,223 at June 30 862,633 832,758
Foreclosed real estate, net of allowance
of $55 at September 30 and $15 at June 30 2,589 2,362
Office properties and equipment, net 2,483 2,377
Intangible assets and deferred charges 377 389
Prepaid expenses and other assets 7,894 8,492
---------- ----------
Total Assets $1,123,32 $1,095,373
========= ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Savings deposits $970,936 $949,452
Advances from FHLB and other debt 58,372 45,091
Escrow for taxes and insurance 4,424 9,610
Other liabilities 5,602 7,160
------- -------
Total Liabilities 1,039,334 1,011,313
SHAREHOLDERS' EQUITY
Preferred Stock ($1.00 par value; 5,000,000
shares authorized; 0 shares issued) - -
Common Stock ($1.00 par value; 10,000,000
shares authorized; September - 6,734,894*
shares issued, June - 5,388,084 shares issued) 6,735 5,388
Additional Paid in Capital 5,305 6,652
Treasury Stock at cost (353,933* shares in
September and 269,308* shares in June) (5,149) (3,051)
Employee Stock Ownership Plan debt (242) (276)
Accumulated other comprehensive income 4,215 4,276
Retained earnings 73,126 71,071
Total Shareholders' Equity 83,990 84,060
------- -------
Total Liabilities and Shareholders' Equity $1,123,324 $1,095,373
========== ==========
* Reflect the effect of the 5-for-4 stock split on October 14, 1998.
PARKVALE FINANCIAL CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands, except per share data)
Three months ended
September 30,
1998 1997
Interest Income: ------- -------
Loans $16,071 $14,208
Mortgage-backed securities 711 1,064
Investments 822 1,342
Federal funds sold 1,844 1,599
------ ------
Total interest income 19,448 18,213
Interest Expense: ------ ------
Savings deposits 11,128 10,561
Borrowings 720 276
------ ------
Total interest expense 11,848 10,837
----- ------
Net interest income 7,600 7,376
Provision for loan losses 63 93
Net interest income after ----- -----
provision for losses 7,537 7,283
Noninterest Income: ----- -----
Service charges on deposit accounts 406 354
Other fees and service charges 228 166
Gain on sale of assets 310 --
Miscellaneous 82 61
----- -----
Total other income 1,026 581
Noninterest Expenses: ----- -----
Compensation and employee benefits 2,143 1,898
Office occupancy 527 539
Marketing 94 135
FDIC insurance 140 136
Office supplies, telephone, and postage 240 219
Miscellaneous 655 662
----- -----
Total other expenses 3,799 3,589
----- -----
Income before income taxes 4,764 4,275
Income tax expense 1,763 1,579
------ ------
Net income $3,001 $2,696
Net income per share: ====== ======
Basic $0.47 $0.42
Diluted $0.45 $0.41
Dividends per share $0.15 $0.104
All share amounts reflect the effect of the 5-for-4 stock split on
October 14, 1998.
Parkvale Financial Corporation
CONSOLIDATED STATEMENTS OF CASH FLOWS
Increase (Decrease) in Cash and Cash Equivalents
(Dollar amounts in thousands)
Three months ended
September 30,
1998 1997
Cash flows from operating activities: ------- --------
Interest received $19,758 $18,333
Loan fees received 18 86
Other fees and commissions received 685 550
Interest paid (11,773) (10,840)
Cash paid to suppliers and others (5,692) (3,232)
Income taxes paid (1,238) (1,048)
------- -------
Net cash provided by operating activities 1,758 3,849
Cash flows from investing activities:
Proceeds from sale of investment securities
available for sale 328 --
Proceeds from maturities of investments 26,203 11,922
Purchase of investment securities held to
maturity (9,638) (7,024)
Maturity of deposits in other banks 177 35
Purchase of loans (52,289) (33,039)
Proceeds from sales of loans 783 1,359
Principal collected on loans 71,715 45,170
Loans made to customers, net of loans in process (50,338) (38,660)
Other (199) (75)
------- --------
Net cash used in investing activities (13,258) (20,312)
Cash flows from financing activities:
Net increase (decrease) in checking and
savings accounts 687 (1,033)
Net increase in certificates of deposit 20,796 15,201
Proceeds from FHLB advances 15,000 5,000
Repayment of FHLB advances (3) (5,003)
Net (decrease) increase in other borrowings (1,715) 1,674
Decrease in escrow tax & insurance (5,187) (5,164)
Cash dividends paid (776) (527)
Allocation of treasury stock to retirement plans -- 319
Acquisition of treasury stock (2,098) --
------- -------
Net cash provided by financing activities 26,704 10,467
Net increase (decrease) in cash and cash
equivalents 15,204 (5,996)
Cash and equivalents at beginning of period 134,528 119,936
-------- --------
Cash and equivalents at end of period $149,732 $113,940
======== ========
Reconciliation of net income to net cash Three months ended
provided by operating activities: September 30,
1998 1997
------ -----
Net income $3,001 $2,696
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 99 131
Accretion and amortization of loan fees and discounts (59) (101)
Loan fees collected and deferred 18 86
Provision for loan losses 63 93
Gain on sale of assets (310) --
Decrease in accrued interest receivable 226 112
Increase in other assets 414 (62)
Decrease in accrued interest payable 75 (3)
Increase in other liabilities (1,769) 897
------- -----
Total adjustments (1,248) 1,153
Net cash provided by operating activities $1,758 $3,849
======= ======
For purposes of reporting cash flows, cash and cash equivalents include cash
and noninterest-earning deposits, and federal funds sold. Generally, federal
funds are purchased and sold for one-day periods. Loans transferred to
foreclosed assets aggregated $596 for the three months ended September 30,
1998 and $-0- for the three months ended September 30, 1997.
<TABLE>
PARKVALE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Dollars in thousands, except share data)
<CAPTION>
Employee Accumulated
Stock Other Total
Common Paid-in Treasury Ownership Comprehensive Retained Shareholders'
Stock Capital Stock Plan Debt Income Earnings Equity
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, June 30, 1998 $5,388 $6,652 ($3,051) ($276) $4,276 $71,071 $84,060
Net income, three months
ended September 30, 1998 3,001 3,001
Dividends on common stock at
$0.15 per share (946) (946)
Principal payments on employee
stock ownership plan debt 34 34
Transfer for 5-4 split 1,347 (1,347) 0
Other comprehensive income, net of tax
Unrealized gains on securities of $136
net of reclassification adjustment for
gains included in net income of $197 (61) (61)
Treasury stock purchased (2,098) (2,098)
------ ------ -------- ------ -------- ------- -------
Balance, September 30, $6,735 $5,305 ($5,149) ($242) $4,215 $73,126 $83,990
1998 ====== ====== ======== ====== ======== ======= =======
</TABLE>
NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts in thousands, except share data)
1. Statements of Operations
- ----------------------------
The statements of operations for the three months ended September 30, 1998 and
1997 are unaudited, but in the opinion of management, reflect all adjustments
(consisting of only normal recurring accruals) necessary for fair presentation
of the results of operations for those periods. The results of operations for
the three months ended September 30, 1998 are not necessarily indicative of the
results which may be expected for fiscal 1999. The Annual Report on Form 10-K
for the year ended June 30, 1998 contains additional information and should be
read in conjunction with this report.
2. Stock Split
- ---------------
On September 17, 1998, the Board of Directors declared a 5-for-4 stock split
of Parkvale's common stock. The additional shares were paid on October 14,
1998 to stockholders of record at the close of business on September 30, 1998.
This increased the outstanding shares by 1,346,810. No fractional shares were
issued. All share amounts in this report have been restated to reflect this
stock split.
3. Earnings Per Share
- ----------------------
In 1997, the Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 128, Earnings per Share ("FAS 128"). FAS 128 replaced
the previously reported primary and fully diluted earnings per share with basic
and diluted earnings per share. All earnings per share amounts for all periods
have been presented to conform to FAS 128 requirements. The following table
sets forth the computation of basic and diluted earnings per share for the
three months ended September 30:
1998 1997
----- -----
Numerator for basic and diluted earnings per share:
Net Income $3,001 $2,696
Denominator:
Weighted average shares for basic earnings
per share 6,438,480 6,367,979
Effect of dilutive employee stock options 169,805 208,974
-------- --------
Weighted average shares for dilutive
earnings per share 6,608,285 6,576,953
========= =========
Net income per share:
Basic $0.47 $0.42
Diluted $0.45 $0.41
4. Comprehensive Income
- ------------------------
As July 1, 1998, the Corporation adopted FAS 130, Reporting Comprehensive
Income, which establishes standards for reporting and display of comprehensive
income and its components. Sources of comprehensive income not included in net
income are limited to unrealized gains and losses on certain investments in
equity securities. Prior period financial statements have been reclassified
to conform to the requirements of FAS 130. During the first quarter of 1998
and 1997, total comprehensive income amounted to $2,940 and $2,829.
5. Loans
- ---------
Loans at September 30 are summarized as follows:
September 30, June 30,
1998 1998
Mortgage loans: ---------- ---------
Residential:
1-4 Family $707,698 $683,504
Multifamily 13,596 13,024
Commercial 25,397 24,869
Other 11,586 12,085
------- -------
758,277 733,482
Consumer loans 117,649 106,266
Commercial business loans 6,335 11,592
Loans on savings accounts 2,757 2,665
------- -------
885,018 854,005
Less: Loans in process 8,808 7,652
Allowance for loan losses 13,242 13,223
Unamortized discount and deferred loan fees 335 372
-------- --------
Loans, net $862,633 $832,758
======== ========
The following summary sets forth the activity in the allowance for loan losses
for the three months ended September 30:
1998 1997
------ ------
Beginning balance $13,223 $14,266
Provision for losses - mortgage loans 3 --
Provision for losses - consumer loans 60 93
Loans recovered 50 21
Loans charged off (94) (15)
-------- --------
Ending balance $13,242 $14,365
======== ========
Nonaccrual loans $2,224 $2,607
as a percent of total assets 0.20% 0.26%
Loans are placed on nonaccrual status when in the judgement of management,
the probability of collection of interest is deemed to be insufficient to
warrant further accrual. All loans which are 90 or more days delinquent are
treated as nonaccrual loans. The amount of interest income of nonaccrual
loans that had not been recognized in interest income was $144 at September 30,
1998 and $181 at June 30, 1998.
Nonaccrual, substandard and doubtful commercial and other real estate loans are
considered impaired. At September 30, 1998, the Bank had $680 of impaired
loans and $120 of reserves related to these loans. Additionally, such loans
have been included in management's assessment of the adequacy of general
valuation allowances. The average recorded investment in impaired loans
during the September 1998 quarter was $784. In October 1998, $635 of impaired
loans were paid in full upon sale of the properties. Impaired assets include
$2,589 of foreclosed real estate as September 30, 1998, which is recorded at
the lower of acquisition costs or fair value. Of this foreclosed real estate,
$348 of assets were sold with cash proceeds received in October 1998.
PARKVALE FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(Dollar amounts in thousands, except per share data)
Balance Sheet Data: September 30,
1998 1997
----- -----
Total assets $1,123,324 $1,005,40
Loans, net 862,633 736,099
Interest-earning deposits and
federal funds sold 141,536 106,347
Total investments 97,317 144,904
Savings deposits 970,936 895,411
FHLB advances and other debt 58,372 21,867
Shareholders' equity 83,990 77,610
Book value per share $13.16 $12.16
Statistical Profile:
Three Months Ended
September 30, (1)
1998 1997
----- -----
Average yield earned on all
interest-earning assets 7.27% 7.51%
Average rate paid on all
interest-bearing liabilities 4.72% 4.78%
Average interest rate spread 2.55% 2.73%
Net yield on average
interest-earning assets 2.84% 3.04%
Other expenses to average assets 1.37% 1.44%
Taxes to pre-tax income 37.01% 36.94%
Return on average assets 1.08% 1.08%
Return on average equity 14.86% 14.80%
Average equity to average total assets 7.27% 7.29%
At September 30,
1998 1997
------ -----
One year gap to total assets -1.15% -3.32%
Intangibles to total equity 0.45% 0.65%
Capital to assets ratio 7.48% 7.72%
Ratio of nonperforming assets to total assets 0.43% 0.26%
Number of full-service offices 29 29
(1)The applicable income and expense figures have been annualized in
calculating the percentages.
Results of Operations - Comparison of Three Months Ended September 30, 1998
and 1997
For the three months ended September 30, 1998, Parkvale reported net income
of $3.0 million or $0.45 per diluted share up 11.3% from net income of $2.7
million or $0.41 per diluted share for the quarter ended September 30, 1997.
The $305,000 increase in net income reflects a gain from sale of assets of
$310,000. Net interest income for the quarter ended September 30, 1998
increased to $7.6 million from $7.4 million for the quarter ended
September 30, 1997.
Interest Income:
Parkvale had interest income of $19.4 million during the three months ended
September 30, 1998 versus $18.2 million during the comparable period in 1997.
The $1.2 million increase is the result of a $101.0 million or 10.4% increase
in the average balance of interest-earning assets, offset by a 24 basis point
decrease in the average yield from 7.51% in 1997 to 7.27% in 1998. Interest
income from loans increased $1.9 million or 13.1% resulting from an increase
in the average outstanding loan balances of $130.6 million or 18.3%, offset
by a 36 basis point decrease in the average yield from 7.98% in 1997 to 7.62%
in 1998. Interest income on mortgage-backed securities decreased $353,000 from
the 1997 quarter due to a decrease of $21.8 million or 35.0% in the average
balance, offset by a 19 basis point increase in the average yield from 6.84%
in 1997 to 7.03% in 1998. Investment interest income decreased by $520,000 due
to a decrease of $24.2 million or 29.9% in the average balance with an 83 basis
point decrease in the average yield from 6.62% in 1997 to 5.79% in 1998.
Interest income earned on federal funds sold increased $245,000 or 15.3% from
the 1997 quarter due to an increase in the average balance of $16.4 million or
14.4% combined with a 5 basis point increase in the average yield from 5.60%
to 5.65%. At September 30, 1998, the weighted average yield on all interest
earning assets was 7.27% compared to 7.51% at September 30, 1997.
Interest Expense:
Interest expense increased $1.0 million or 9.3% from the 1997 to the 1998
quarter. The increase was due to a 5 basis point decrease in the average rate
paid on deposits and borrowings from 4.78% in 1997 to 4.73% in 1998 combined
with an increase in the average deposits and borrowings of $97.2 million. At
September 30, 1998, the average rate payable on liabilities was 4.54% for
deposits, 5.75% for borrowings and 4.60% for combined deposits and borrowings.
Provision for Loan Losses:
Parkvale's provision for loan losses decreased by $30,000 from the 1997 to the
1998 quarter. Total reserves were 1.50% and 1.55% of gross loans at September
30, 1998 and June 30, 1998, respectively.
Nonperforming loans and real estate owned were $4.9 million, $4.7 million and
$2.6 million at September 30, 1998, June 30, 1998 and September 30, 1997,
representing 0.43%, 0.43% and 0.26% of total assets at the respective balance
sheet dates. Total loan loss reserves at September 30, 1998 were $13.2 million,
which represents 1.50% of the gross loan portfolio.
Other Income:
Total other income increased by $445,000 or 76.6% in 1998 primarily from a
$310,000 gain from the sale of equity securities, primarily Freddie Mac stock.
Absent this gain, other income increased $135,000 or 23.2% from 1997 primarily
due to ATM surcharges assessed to non-Parkvale customers, which began during
fiscal 1998 and increased services on all types of deposit and loan products.
Other Expense:
Total other expense increased by $210,000 or 5.9% for the three months ended
September 30, 1998. This increase is due to an increase in compensation
expense of $245,000 or 12.9%. Parkvale's personnel increased by 18 full-time
and 18 part-time employees to better serve the expanding product offerings in
both loan and deposit portfolios. The remaining components of noninterest
expense decreased in the aggregate by $35,000 due to continued to efforts to
keep costs at a minimum. Annualized noninterest expenses as a percentage of
average assets were 1.37% for the quarter ended September 30, 1998 as
compared to 1.44% for the quarter ended September 30, 1997.
Liquidity and Capital Resources:
Federal funds sold increased $16.3 million or 13.1% from June 30, 1998 to
September 30, 1998 resulting primarily from funds available as a result of
an increase in deposit balances of $21.5 million. Investment securities held
to maturity decreased $16.6 million from June 30, 1998 to September 30, 1998.
Escrow for taxes and insurance decreased by $5.2 million or 54.0% as a result
of the remittance of property taxes to the various taxing districts during the
quarter.
Shareholders' equity was $84.0 million or 7.5% of total assets at September 30,
1998. The Bank is required to maintain Tier I (Core) capital equal to at least
4% of the institution's adjusted total assets, and Tier II (Supplementary)
risk-based capital equal to at least 8% of the risk-weighted assets. At
September 30, 1998, Parkvale was in compliance with all applicable regulatory
requirements, with Tier I and Tier II ratios of 7.02% and 14.12%, respectively.
Tier I Tier I Tier II
Core Risk-Based Risk-Based
Capital Capital Capital
-------- --------- --------
Equity Capital (1) $83,512 $83,512 $83,512
Less non-allowable intangible assets (377) (377) (377)
Less unrealized securities gains (3,728) (3,728) (3,728)
Plus general valuation allowances (2) -- -- 7,785
------- ------- -------
Total regulatory capital 79,407 79,407 87,192
Minimum required capital 45,237 24,704 49,409
------- ------- -------
Excess regulatory capital $34,170 $54,703 $37,783
Adjusted total assets $1,130,917 $617,607 $617,607
Regulatory capital as a percentage 7.02% 12.86% 14.12%
Minimum capital required as a percentage 4.00% 8.00% 8.00%
Excess regulatory capital as a % 3.02% 8.86% 6.12%
Well capitalized requirement 5.00% 6.00% 0.00%
(1) Represents equity capital of the consolidated Bank as reported to the PA
Dept. of Banking and FDIC on Form 032 for the quarter ended September 30, 1998.
(2) Limited to 1.25% of risk adjusted total assets.
Management is not aware of any trends, events, uncertainties or current
recommendations by any regulatory authority that will have (if implemented),
or that are reasonably likely to have, material effects on Parkvale's
liquidity, capital resources or operations.
Impact of Year 2000:
The year 2000 ("Y2K") plans were discussed on Page 12 of the 1998 Annual
Report included in the 1998 Form 10-K filed in September 1998. Testing of
systems was conducted as planned in October 1998, and no changes to the
plan are required as a result of recent testing. The Bank continues its
efforts to identify a new primary service provider. The search has been
narrowed to two providers with a decision expected in the December 1998
quarter.
Impact of Inflation and Changing Prices:
The financial statements and related data presented herein have been prepared
in accordance with generally accepted accounting principles, which require
the measurement of financial position and operating results in terms of
historical dollars without considering changes in the relative purchasing
power of money over time due to inflation. Unlike most industrial companies,
substantially all of the assets and liabilities of a financial institution
are monetary in nature. As a result, interest rates have a more significant
impact on a financial institution's performance than the effects of general
levels of inflation. Interest rates do not necessarily move in the same
direction or in the same magnitude as the prices of goods and services as
measured by the consumer price index.
Forward Looking Statements:
The statements in this Form 10-Q which are not historical fact are forward
looking statements. Forward looking information should not be construed
as guarantees of future performance. Actual results may differ from
expectations contained in such forward looking information as a result of
factors including but not limited to the interest rate environment, economic
policy or conditions, federal and state banking and tax regulations and
competitive factors in the marketplace. Each of these factors could affect
estimates, assumptions, uncertainties and risks considered in the development
of forward looking information and could cause actual results to differ
materially from management's expectations regarding future performance.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings None
Item 2. Changes in Securities
Refer to above Part I, "Notes to Unaudited Interim Consolidated Financial
Statements," under Note 2, "Stock Split".
Item 3. Defaults Upon Senior Securities N/A
Item 4. Submission of Matters to a Vote of Security Holders
(a) The 1998 Annual Meeting of Shareholders of Parkvale Financial Corporation
was held on October 22, 1998. Of 5,164,037 shares eligible to vote, 88.9% or
4,589,235 were voted by proxy.
(b) The shareholders voted to elect the two nominees for directors, as
described in the Proxy Statement for the Annual Meeting. The results for
the re-election of Robert J. McCarthy, Jr. as a director were 4,353,097
shares in favor and 236,138 shares withheld. The results for the election
of Patrick Minnock as director were 4,337,474 shares in favor and 251,761
shares withheld.
(c) The recommendation by the Board of Directors to ratify the appointment of
Ernst & Young LLP as the Corporation's independent auditors, as described in
the Proxy Statement for the Annual Meeting, was approved with 4,542,825 shares
in favor, 15,289 shares against and 31,121 shares abstaining.
(d) The shareholders voted to reject a proposal to actively solicit the sale
of the Bank, as described in the Proxy Statement for the Annual Meeting.
Of 3,879,277 shares voted, 960,432 shares were in favor, 2,838,039 shares
were against, and 80,806 shares abstained.
(e) The shareholders voted to reject a proposal to impose a mandatory retire-
ment age for all directors, as described in the Proxy Statement for the Annual
Meeting. Of 3,879,279 shares voted, 855,121 shares were in favor, 2,933,101
shares were against, and 91,057 shares abstained.
Item 5. Other Information None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits None
(b) Reports on Form 8-K None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Parkvale Financial Corporation
DATE: November 6, 1998 By: /s/Robert J. McCarthy, Jr.
-------------------------
Robert J. McCarthy, Jr.
President and
Chief Executive Officer
DATE: November 6, 1998 By: /s/ Timothy G. Rubritz
--------------------------
Timothy G. Rubritz
Vice President, Treasurer and
Chief Financial Officer
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
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10-Q.
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<PERIOD-END> SEP-30-1998
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<INT-BEARING-DEPOSITS> 299
<FED-FUNDS-SOLD> 141,237
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 14,710
<INVESTMENTS-CARRYING> 82,607
<INVESTMENTS-MARKET> 83,589
<LOANS> 875,875
<ALLOWANCE> 13,242
<TOTAL-ASSETS> 1,123,324
<DEPOSITS> 970,936
<SHORT-TERM> 7,508
<LIABILITIES-OTHER> 10,026
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<COMMON> 6,735
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<INTEREST-INVEST> 3,377
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<INTEREST-TOTAL> 19,448
<INTEREST-DEPOSIT> 11,128
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<INCOME-PRETAX> 4,764
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<NET-INCOME> 3,001
<EPS-BASIC> 0.47
<EPS-DILUTED> 0.45
<YIELD-ACTUAL> 2.52
<LOANS-NON> 2,224
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 13,223
<CHARGE-OFFS> 94
<RECOVERIES> 50
<ALLOWANCE-CLOSE> 13,242
<ALLOWANCE-DOMESTIC> 13,242
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 12,898
</TABLE>
