LENOIR, N.C., Feb. 27 /PRNewswire-FirstCall/ -- Parkway Bank
(OTC:PKWY) (BULLETIN BOARD: PKWY) announced today that its net
income for the year ended December 31, 2005, was $1,033,476,
compared to net income of $321,886 for the year ended December 31,
2004. Net income for the fourth quarter of 2005 was $225,108,
compared to net income of $189,041 in the fourth quarter of 2004
and net income of $294,727 in the third quarter of 2005. Total
assets were $90 million at December 31, 2005, compared to $73.9
million at December 31, 2004, an increase of $16.1 million or
21.79%. Deposits and loans increased to $75.9 million and $61
million, from $60.8 million and $51.8 million in 2004 respectively.
At December 31, 2005, shareholders' equity was $12.4 million and
the book value per share of the Bank's common stock was $9.75.
Parkway Bank President and CEO, Gary Clawson, in commenting on the
results, noted, "Fiscal year 2005 was our fourth full year of
operation and we are extremely pleased with our earnings
performance. A number of factors, including continuing maturity of
the Bank, overall growth, actions by the Federal Open Market
Committee, and most importantly the effort made by all of Parkway's
employees made it happen. Both of our current locations are
performing well and we are at present preparing and developing our
final plans for our Granite Falls branch. We are excited about
serving and being a part of the most southern part of Caldwell
County." 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 December 31, 2005 and
2004 2005 2004 ASSETS Cash and due from banks $1,734,137 $1,112,971
Federal funds sold 3,308,000 6,507,000 Investment securities
available for sale, at fair value 12,724,139 11,337,962 Interest
bearing deposits with other financial institutions 5,000,000 -
Loans 61,044,579 51,832,308 Allowance for loan losses (869,603)
(758,328) NET LOANS 60,174,976 51,073,980 Accrued interest
receivable 394,337 277,211 Bank premises and equipment 2,816,566
2,928,724 Stock in Federal Home Loan Bank of Atlanta, at cost
147,800 113,800 Bank owned life insurance 3,095,028 - Other assets
567,681 518,465 TOTAL ASSETS $89,962,664 $73,870,113 LIABILITIES
AND STOCKHOLDERS' EQUITY Deposits Non-interest-bearing $7,189,889
$4,939,465 Savings 1,200,602 1,055,679 Money market and NOW
16,935,330 15,705,470 Time 50,613,821 39,119,200 TOTAL DEPOSITS
75,939,642 60,819,814 Repurchase agreements 1,074,915 1,440,369
Accrued expenses and other Liabilities 591,337 217,325 TOTAL
LIABILITIES 77,605,894 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 791,226 (242,250) Accumulated other
comprehensive income (114,971) (45,660) TOTAL STOCKHOLDERS' EQUITY
12,356,770 11,392,605 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$89,962,664 $73,870,113 PARKWAY BANK AND SUBSIDIARY CONSOLIDATED
STATEMENT OF OPERATIONS Years Ended December 31, 2005 and 2004 2005
2004 INTEREST INCOME Loans $4,210,860 $2,903,912 Investments
339,521 277,095 Federal Funds sold 157,408 85,855 Deposits with
other financial institutions 43,348 5,079 TOTAL INTEREST INCOME
4,751,137 3,271,941 INTEREST EXPENSE Money Market, NOW and savings
deposits 286,044 150,035 Time deposits 1,341,795 1,112,678
Securities sold under repurchase agreements 13,842 11,368 TOTAL
INTEREST EXPENSE 1,641,681 1,274,081 NET INTEREST INCOME 3,109,456
1,997,860 PROVISION FOR LOAN LOSSES 208,972 84,250 NET INTEREST
INCOME AFTER PROVISION FOR LOAN LOSSES 2,900,484 1,913,610
NON-INTEREST INCOME Insurance Commissions 495,876 422,665 Mortgage
operations 155,848 164,926 Other fees and charges 487,731 321,072
TOTAL NON-INTEREST INCOME 1,139,455 908,663 NON-INTEREST EXPENSE
Salaries and employee benefits 1,520,967 1,390,148 Occupancy and
equipment 337,356 307,907 Advertising and promotion 74,369 78,767
Data processing and outside service fees 454,501 395,013
Professional fees 105,066 46,615 Supplies, telephone and postage
122,664 131,235 Other 220,470 150,702 TOTAL NON-INTEREST EXPENSE
2,835,393 2,500,387 INCOME BEFORE INCOME TAXES 1,204,546 321,886
INCOME TAXES 171,070 - NET INCOME $1,033,476 $ 321,886 NET INCOME
PER COMMON SHARE* BASIC $0.82 $0.34 DILUTED $0.80 $0.33 WEIGHTED
AVERAGE COMMON SHARES BASIC 1,267,895 955,970 DILUTED 1,298,514
973,842 *All information regarding earning per share and weighted
average number of shares outstanding has been computed giving
effect to an 11 for 10 stock split effected in the form of a 10%
stock dividend which was distributed on May 31, 2005 to
stockholders of record on May 15, 2005. First Call Analyst: FCMN
Contact: 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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