Parkvale Financial (PVSA) 8-K Parkvale Financial Corporation, Monroeville, PA announces increased earnings for the second quarter of fiscal 2006

Exhibit 99.1

FOR IMMEDIATE RELEASE January 19, 2006

Parkvale Financial Corporation, Monroeville, PA
announces increased earnings for the second quarter of fiscal 2006

     Parkvale Financial Corporation (NASDAQ: PVSA) reported net income for the six-month period ended December 31, 2005 of $6.5 million or $1.14 per diluted share, up 21.1% from net income of $5.3 million or $0.95 per diluted share for the six-month period ended December 31, 2004.The $1.1 million increase in net income for the December 2005 six months reflects a $3.6 million increase in net interest income partially offset by a $2.4 million increase in non-interest expense. The improved margins include the positive effects of seven offices added with the acquisition of Advance Financial Bancorp in December 2004. Net interest income for the six months ended December 31, 2005 increased to $18.9 million from $15.3 million for the six months ended December 31, 2004. Return on average equity was 11.19% for the six months ended December 2005 compared to 10.00% for the six months ended December 2004.

     Net income for the quarter ended December 31, 2005 was $3.2 million or $0.57 per diluted share, up 19.5% from net income of $2.7 million or $0.48 per diluted share for the quarter ended December 31, 2004. The $528,000 increase in net income for the December 2005 quarter reflects increased margins on net earning assets, offset by an increase in non-interest expense. Net interest income increased to $9.5 million from $7.7 million for the prior period. Return on average equity was 11.11% for the December 2005 quarter compared to 10.09% for the December 2004 quarter.

     On January 18, 2006, Parkvale purchased the Parkvale Building located at the corner of Routes 22 and 48 in Monroeville. This building has served as the main office and headquarters for Parkvale Bank since 1987 and the vast majority of Parkvale’s administrative staff is employed at this location.

     Parkvale Financial Corporation is the parent of Parkvale Savings Bank, which has 47 offices in the tri-state area. The Bank had assets of $1.8 billion on December 31, 2005.

     (Condensed Consolidated Statement of Operations and selected financial data is attached.)

Contact:	Robert J. McCarthy, Jr.	Timothy G. Rubritz
	President and CEO	Chief Financial Officer
	(412) 373-4815	(412) 373-4817
		email: timothy.rubritz@parkvale.com

PARKVALE FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollar amounts in thousands, except per share data)
(Unaudited)

	Three months ended				Six months ended
	December 31,				December 31,
	2005		2004		2005		2004
Total interest income	$	22,003	$	17,582	$	43,655	$	35,086
Total interest expense		12,543		9,913		24,759		19,772
Net interest income		9,460		7,669		18,896		15,314
Provision for loan losses		146		54		282		111
Net interest income after provision for losses		9,314		7,615		18,614		15,203
Gain on sale of assets		24		—		24		14
Other income		2,225		1,874		4,508		3,763
Total other expenses		6,790		5,536		13,630		11,220
Income before income taxes		4,773		3,953		9,516		7,760
Income tax expense		1,533		1,241		3,048		2,420
Net income	$	3,240	$	2,712	$	6,468	$	5,340
Basic earnings per share	$	0.58	$	0.49	$	1.15	$	0.96
Diluted earnings per share	$	0.57	$	0.48	$	1.14	$	0.95
Dividends per share	$	0.20	$	0.20	$	0.40	$	0.40

SELECTED FINANCIAL DATA
(Dollar amounts in thousands, except per share data)

	Dec. 31,			June 30,			Dec. 31,
	2005			2005			2004
Total assets	$	1,844,289		$	1,875,844		$	1,913,653
Total deposits		1,435,680			1,478,335			1,536,252
Total loans, net		1,228,728			1,198,070			1,241,342
Loan loss reserves		15,008			15,188			15,611
Non-performing assets		7,157			8,815			7,187
Ratio of classified assets to total assets		0.39	%		0.47	%		0.38	%
Allowance for loan losses as a % of gross loans		1.21	%		1.25	%		1.24	%
Total shareholders’ equity	$	117,141		$	112,971		$	107,971
Book value per share	$	20.80		$	20.09		$	19.32

OTHER SELECTED DATA

	Three months ended						Six months ended
	December 31,						December 31,
	2005			2004			2005			2004
Average interest rate spread		2.11	%		1.89	%		2.10	%		1.88	%
Return on average assets		0.70	%		0.67	%		0.70	%		0.66	%
Return on average equity		11.11	%		10.09	%		11.19	%		10.00	%
Other expense to average assets		1.47	%		1.38	%		1.47	%		1.39	%

PARKVALE FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar amounts in thousands, except share data)

	December 31,			June 30,
ASSETS	2005			2005
Cash and noninterest-earning deposits	$	34,306		$	26,040
Federal funds sold		52,000			81,000
Cash and cash equivalents		86,306			107,040
Interest-earning deposits in other banks		6,738			9,474
Investment securities available for sale (cost of $26,026 at December 31 and $24,682 at June 30)		26,070			25,022
Investment securities held to maturity (fair value of $417,624 at December 31 and $459,645 at June 30)		422,179			460,080
Loans, net of allowance of $15,008 at December 31 and $15,188 at June 30		1,228,728			1,198,070
Foreclosed real estate, net		1,092			1,654
Office properties and equipment, net		13,096			13,053
Goodwill		25,634			25,634
Intangible assets and deferred charges		7,010			7,487
Prepaid expenses and other assets		27,436			28,330
Total Assets	$	1,844,289		$	1,875,844
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits	$	1,435,680		$	1,478,335
Advances from FHLB		226,997			217,141
Trust Preferred Securities		32,200			32,200
Other borrowings		20,105			23,116
Escrow for taxes and insurance		6,073			5,570
Other liabilities		6,093			6,511
Total Liabilities	$	1,727,148		$	1,762,873
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; 6,734,894 shares issued,		6,735			6,735
Additional Paid in Capital		3,540			3,536
Treasury Stock at cost (1,102,564 shares in December and 1,112,948 shares in June)		(21,584	)		(21,680	)
Accumulated other comprehensive income		71			216
Retained earnings		128,379			124,164
Total Shareholders’ Equity		117,141			112,971
Total Liabilities and Shareholders’ Equity	$	1,844,289		$	1,875,844
Shareholders’ Equity per share	$	20.80		$	20.09

PARKVALE FINANCIAL CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands, except per share data)

	Three months ended				Six months ended
	December 31,				December 31,
	2005		2004		2005		2004
Interest Income:
Loans	$	16,765	$	12,941		33,106		25,975
Investments		4,537		4,264		9,073		8,491
Federal funds sold		701		377		1,476		620
Total interest income		22,003		17,582		43,655		35,086
Interest Expense:
Savings deposits		8,921		7,064		17,646		14,225
Borrowings		2,990		2,486		5,889		4,845
Trust preferred securities		632		363		1,224		702
Total interest expense		12,543		9,913		24,759		19,772
Net interest income		9,460		7,669		18,896		15,314
Provision for loan losses		146		54		282		111
Net interest income after provision for losses		9,314		7,615		18,614		15,203
Noninterest Income:
Service charges on deposit accounts		1,576		1,436		3,165		2,690
Other fees and service charges		307		169		646		490
Gain on sale of assets		24		0		24		14
Miscellaneous		342		269		697		583
Total other income		2,249		1,874		4,532		3,777
Noninterest Expenses:
Compensation and employee benefits		3,667		3,053		7,365		6,279
Office occupancy		1,285		980		2,547		1,989
Marketing		146		102		285		185
FDIC insurance		48		46		98		93
Office supplies, telephone, and postage		456		399		907		754
Miscellaneous		1,188		956		2,428		1,920
Total other expense		6,790		5,536		13,630		11,220
Income before income taxes		4,773		3,953		9,516		7,760
Income tax expense		1,533		1,241		3,048		2,420
Net income	$	3,240	$	2,712	$	6,468	$	5,340
Basic earnings per share	$	0.58	$	0.49	$	1.15	$	0.96
Diluted earnings per share	$	0.57	$	0.48	$	1.14	$	0.95
Dividends per share	$	0.20	$	0.20	$	0.40	$	0.40