Parkway Bank Announces Second Quarter 2005 Earnings LENOIR, N.C.,
July 18 /PRNewswire-FirstCall/ -- Parkway Bank (OTC:PKWY) (BULLETIN
BOARD: PKWY) today announced record earnings for the three and six
month periods ended June 30, 2005. Net income for the second
quarter of 2005 was $293,421 or $.23 per basic and diluted share,
an increase of $283,527 or 2,865.65% over net income of $9,894 or
$.01 per basic and diluted share in the second quarter of 2004. Net
income for the first six months of 2005 was $513,641 or $.41 per
basic share and $.40 per diluted share, up $483,329, or 1,594.51%
over net income of $30,312 or $.04 per basic and diluted share for
the first six months of 2004. Parkway's total assets grew by 6.24%,
from $73.9 million at December 31, 2004 to $78.5 million at June
30, 2005. Net loans outstanding rose 10.63% during the same period
from $51.1 million to $56.5 million, while deposits totaled $65.3
million at June 30, 2005 which represents a 7.43% increase over
deposits of $60.8 million at December 31, 2004. At June 30, 2005,
shareholders' equity was $11.9 million and the bank's book value
per share of the Bank's common stock was $9.38. Parkway Bank
President and CEO, Gary Clawson, in commenting on the results,
noted, "Improved financial performance is evident as the Bank
matures and growth continues. Sustained focus on expense control,
non-interest income and net-interest margin all factor into our
performance. Notwithstanding our positive trend, shareholders can
feel confident that we continue to push forward with finding new
ideas for generating revenue and controlling expenses." Parkway
Bank is a community bank operating two branches in Caldwell County,
North Carolina. For more information about the Bank and our
products and services, contact Parkway Bank at 828-758-1414, or
visit http://www.parkwaybanknc.com/. This release contains certain
forward-looking statements with respect to the financial condition,
results of operations and business of the Bank. These
forward-looking statements involve risks and uncertainties and are
based on the beliefs and assumptions of management of the Bank and
on the information available to management at the time that these
disclosures were prepared. These statements can be identified by
the use of words like "expect," "anticipate," "estimate" and
"believe," variations of these words and other similar expressions.
Readers should not place undue reliance on forward-looking
statements as a number of important factors could cause actual
results to differ materially from those in the forward-looking
statements. The Bank undertakes no obligation to update any
forward-looking statements. PARKWAY BANK AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET June 30, December 31, 2005 2004*
(Unaudited) ASSETS Cash and due from banks $1,392,383 $1,112,971
Federal funds sold 2,580,000 6,507,000 Investment securities
available for sale, at fair value 10,859,477 11,337,962 Loans
57,328,361 51,832,308 Allowance for loan losses (822,921) (758,328)
NET LOANS 56,505,440 51,073,980 Accrued interest receivable 303,880
277,211 Bank premises and equipment 2,915,345 2,928,724 Stock in
Federal Home Loan Bank of Atlanta, at cost 147,800 113,800 Bank
owned life insurance 3,000,000 - Other assets 772,987 518,465 TOTAL
ASSETS $78,477,312 $73,870,113 LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits Non-interest-bearing $5,663,727 $4,939,465 Savings
1,243,638 1,055,679 Money market and NOW 16,912,577 15,705,470 Time
41,520,628 39,119,200 TOTAL DEPOSITS 65,340,570 60,819,814
Repurchase agreements 912,855 1,440,369 Accrued expenses and other
Liabilities 331,678 217,325 TOTAL LIABILITIES 66,585,103 62,477,508
Stockholders' equity Common stock,$5 par value, 20,000,000 shares
authorized; 1,267,895 and 1,152,720 shares issued and outstanding,
respectively 6,339,475 5,763,600 Additional paid-in capital
5,341,040 5,916,915 Accumulated deficit 271,391 (242,250)
Accumulated other comprehensive loss (59,697) (45,660) TOTAL
STOCKHOLDERS' EQUITY 11,892,209 11,392,605 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $78,477,312 $73,870,113 PARKWAY BANK AND
SUBSIDIARY CONSOLIDATED STATEMENT OF OPERATIONS For The Three For
The Three For The Six For The Six Months Months Months Months June
30, 2005 June 30, 2004 June 30, 2005 June 30, 2004 INTEREST INCOME
(Unaudited) (Unaudited) (Unaudited) (Unaudited) Loans $1,007,651
$663,006 $1,934,004 $1,312,996 Investments 79,976 67,952 163,340
114,439 Federal funds sold and deposits in other banks 24,575
15,630 51,131 29,508 TOTAL INTEREST INCOME 1,112,202 746,588
2,148,475 1,456,943 INTEREST EXPENSE Money market, Now and savings
deposits 61,013 34,343 104,431 72,224 Time deposits 298,407 292,329
572,173 550,751 Securities sold under repurchase agreements 3,689
2,429 7,800 5,207 TOTAL INTEREST EXPENSE 363,109 329,101 684,404
628,182 NET INTEREST INCOME 749,093 417,487 1,464,071 828,761
PROVISION FOR LOAN LOSSES 82,000 11,000 132,000 32,750 NET INTEREST
INCOME AFTER PROVISION FOR LOAN LOSSES 667,093 406,487 1,332,071
796,011 NON INTEREST INCOME Insurance commissions 171,322 112,858
293,099 239,117 Mortgage operations 36,532 63,719 80,967 96,947
Other fees and charges 130,930 75,235 224,219 127,780 TOTAL NON
INTEREST INCOME 338,784 251,812 598,285 463,844 NON INTEREST
EXPENSE Salaries and employee benefits 368,201 362,664 744,747
692,693 Occupancy and equipment 84,155 79,254 166,257 145,670
Advertising and promotion 15,502 28,712 42,111 48,907 Data
processing and outside service fees 108,236 95,551 227,706 181,760
Professional fees 23,648 16,363 47,934 34,428 Supplies, telephone,
and postage 26,134 25,954 55,976 65,799 Other 86,580 39,907 131,984
60,286 TOTAL NON INTEREST EXPENSE 712,456 648,405 1,416,715
1,229,543 INCOME BEFORE INCOME TAXES 293,421 9,894 513,641 30,312
INCOME TAXES - - - - NET INCOME $293,421 $9,894 $513,641 $ 30,312
NET INCOME PER COMMON SHARE BASIC $0.23 $0.01 $0.41 $0.04 DILUTED
$0.23 $0.01 $0.40 $0.04 WEIGHTED AVERAGE COMMON SHARES BASIC
1,267,895 778,187 1,267,895 778,187 DILUTED 1,295,080 805,479
1,295,080 805,479 DATASOURCE: Parkway Bank CONTACT: Gary T.
Clawson, President and CEO of Parkway Bank, +1-828-758-1414 Web
site: http://www.parkwaybanknc.com/
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