LENOIR, N.C., May 9 /PRNewswire-FirstCall/ -- Parkway Bank
(OTC:PKWY) (BULLETIN BOARD: PKWY) today reported earnings for the
three-month period ending March 31, 2006. Net income for the first
quarter of 2006 was $227,164 or $.17 per diluted share, an increase
of 3.15% over net income of $220,220 or $.17 per diluted share for
the first quarter of 2005. Parkway's total assets grew by 2.07%,
from $90.0 million at December 31, 2005 to $91.8 million at March
31, 2006. Net loans outstanding rose to $60.8 million from $60.2
million, while deposits totaled $77.1 million at March 31, 2006
which represents a 1.51% increase over deposits of $76.0 million at
December 31, 2005. At March 31, 2006, shareholders' equity was
$12.5 million and the bank's book value per share was $9.89.
Parkway Bank President and CEO, Gary Clawson, in commenting on the
results, noted, "We are pleased to announce that first quarter 2006
earnings exceeded first quarter 2005 especially in view of the fact
that the bank was fully taxable in the 2006 period. We are on
target with our earnings expectations and feel they are consistent
with our long-term performance goals." 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/. PARKWAY BANK AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET March 31, December 31, 2006 2005*
(Unaudited) ASSETS Cash and due from banks $1,374,524 $1,734,137
Federal funds sold 3,522,000 3,308,000 Interest bearing deposits
with other financial institutions 5,000,000 5,000,000 Investment
securities available for sale, at fair value 14,010,826 12,724,139
Loans 61,683,249 61,044,579 Allowance for loan losses (912,862)
(869,603) NET LOANS 60,770,387 60,174,976 Accrued interest
receivable 412,411 394,337 Bank premises and equipment 2,776,074
2,816,566 Stock in Federal Home Loan Bank of Atlanta, at cost
179,800 147,800 Bank owned life insurance 3,125,229 3,095,028 Other
assets 650,501 567,681 TOTAL ASSETS $91,821,752 $89,962,664
LIABILITIES AND STOCKHOLDERS' EQUITY Deposits Non-interest-bearing
$8,046,891 $7,189,889 Savings 1,225,365 1,200,602 Money market and
NOW 16,536,880 16,935,330 Time 51,277,548 50,613,821 TOTAL DEPOSITS
77,086,684 75,939,642 Repurchase agreements 1,620,745 1,074,915
Accrued expenses and other Liabilities 574,701 591,337 TOTAL
LIABILITIES 79,282,130 77,605,894 Stockholders' equity Common
stock, $5 par value, 20,000,000 shares authorized; 1,267,895 issued
and outstanding 6,339,475 6,339,475 Additional paid-in capital
5,342,250 5,341,040 Retained earnings 1,018,390 791,226 Accumulated
other comprehensive income (160,493) (114,971) TOTAL STOCKHOLDERS'
EQUITY 12,539,622 12,356,770 TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $91,821,752 $89,962,664 PARKWAY BANK AND SUBSIDIARY
CONSOLIDATED STATEMENT OF OPERATIONS For The For The Three Months
Three Months March 31, March 31, 2006 2005 INTEREST INCOME
(Unaudited) (Unaudited) Loans $1,217,514 $926,353 Investments
136,325 83,364 Federal funds sold and deposits in other banks
57,562 26,556 Deposits with other financial institutions 41,670 -
TOTAL INTEREST INCOME 1,453,071 1,036,273 INTEREST EXPENSE Money
market, Now and savings deposits 113,649 43,418 Time deposits
487,075 273,766 Securities sold under repurchase agreements 2,919
4,111 TOTAL INTEREST EXPENSE 603,643 321,295 NET INTEREST INCOME
849,428 714,978 PROVISION FOR LOAN LOSSES 50,000 50,000 NET
INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 799,428 664,978 NON
INTEREST INCOME Insurance commissions 132,952 121,777 Mortgage
operations 9,686 44,435 Return check charges 70,346 63,218 Increase
cash value bank-owned life insurance 30,201 - Other fees and
charges 23,343 30,071 TOTAL NON INTEREST INCOME 266,528 259,501 NON
INTEREST EXPENSE Salaries and employee benefits 394,720 376,546
Occupancy and equipment 80,702 82,102 Advertising and promotion
7,459 26,609 Data processing and outside service fees 122,026
119,470 Professional fees 24,990 24,286 Supplies, telephone, and
postage 33,417 29,842 Other 64,478 45,404 TOTAL NON INTEREST
EXPENSE 727,792 704,259 PROFIT BEFORE INCOME TAXES 338,164 220,220
INCOME TAXES 111,000 - NET INCOME $227,164 $220,220 NET INCOME PER
COMMON SHARE BASIC $0.18 $0.17 DILUTED $0.17 $0.17 WEIGHTED AVERAGE
COMMON SHARES BASIC 1,267,895 1,267,895 DILUTED 1,306,257 1,296,595
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. 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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