LENOIR, N.C., Nov. 1 /PRNewswire-FirstCall/ -- Parkway Bank
(OTC:PKWY) (BULLETIN BOARD: PKWY) today reported earnings for the
three and nine month periods ending September 30, 2006. Net income
for the third quarter of 2006 was $263,887 or $.18 per diluted
share, compared to $294,727 or $.21 per diluted share in the third
quarter of 2005. Net income for the nine months ended September 30,
2006 was $753,323 or $.52 per diluted share, compared to $808,368
or $.57 per diluted share for the nine months ended September 30,
2005. Parkway's total assets grew by 9.15%, from $90.0 million at
December 31, 2005 to $98.2 million at September 30, 2006. Net loans
outstanding rose to $62.7 million, while deposits totaled $83.7
million at September 30, 2006 which represents a 10.19% increase
over deposits of $76.0 million at December 31, 2005. At September
30, 2006, shareholders' equity was $13.2 million and Parkway's book
value per share was $9.42. Parkway Bank President and CEO, Gary
Clawson, in commenting on the results, noted, "Our operational
performance continues to show improvement as year-to-date net
income in 2006 is fully taxable compared to minimal income taxes
paid during the same period in 2005. The bank is only five years
old and as we continue to mature and grow, performance should
continue to improve. The entire banking industry, will however,
have to consider extensive planning to address the increasing
expenses associated with new and existing regulatory issues.
Expenditures in legal, accounting, training and compliance are
areas, in addition to all other expenses, we continuously monitor
in order to perform at the high level we expect of ourselves."
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 SHEETS September 30 December 31, 2006 2005*
(Unaudited) ASSETS Cash and due from banks $1,894,252 $1,734,137
Federal funds sold 3,852,000 3,308,000 Interest bearing deposits
with other financial institutions 4,000,000 5,000,000 Investment
securities available for sale, at fair value 18,476,999 12,724,139
Loans 63,616,240 61,044,579 Allowance for loan losses (891,700)
(869,603) NET LOANS 62,724,540 60,174,976 Accrued interest
receivable 549,186 394,337 Bank premises and equipment 2,685,188
2,816,566 Stock in Federal Home Loan Bank of Atlanta, at cost
180,000 147,800 Bank owned life insurance 3,183,934 3,095,028 Other
assets 647,404 567,681 TOTAL ASSETS $98,193,503 $89,962,664
LIABILITIES AND STOCKHOLDERS' EQUITY Deposits Non-interest-bearing
7,957,957 $7,189,889 Savings 1,185,658 1,200,602 Money market and
NOW 16,117,012 16,935,330 Time 58,416,488 50,613,821 TOTAL DEPOSITS
83,677,115 75,939,642 Repurchase agreements 903,319 1,074,915
Accrued expenses and other liabilities 441,334 591,337 TOTAL
LIABILITIES 85,021,768 77,605,894 Stockholders' equity Common
stock, $5 par value, 20,000,000 shares authorized; 1,398,694 and
1,267,895 issued and outstanding, respectively 6,993,470 6,339,475
Additional paid-in capital 5,360,354 5,341,040 Retained earnings
909,729 791,226 Accumulated other comprehensive income (91,818)
(114,971) TOTAL STOCKHOLDERS' EQUITY 13,171,735 12,356,770 TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY $98,193,503 $89,962,664
PARKWAY BANK AND SUBSIDIARY CONSOLIDATED STATEMENT OF OPERATIONS
For The For The For The For The Three Three Nine Nine Months Months
Months Months September September September September 30, 2006 30,
2005 30, 2006 30, 2005 (Unaudited) (Unaudited) (Unaudited)
(Unaudited) INTEREST INCOME Loans $1,354,556 $1,106,580 $3,861,709
$3,040,584 Investment securities available for sale 192,268 84,798
482,705 248,138 Federal funds sold 50,856 39,591 153,080 86,859
Interest bearing deposits with other financial institutions 33,401
3,112 118,853 6,975 TOTAL INTEREST INCOME 1,631,081 1,234,081
4,616,347 3,382,556 INTEREST EXPENSE Money market, Now and savings
deposits 123,073 78,205 353,463 182,636 Time deposits 643,189
346,088 1,668,011 918,261 Repurchase agreements 2,338 3,208 8,361
11,008 TOTAL INTEREST EXPENSE 768,600 427,501 2,029,835 1,111,905
NET INTEREST INCOME 862,481 806,580 2,586,512 2,270,651 PROVISION
FOR LOAN LOSSES 30,000 15,000 125,000 147,000 NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES 832,481 791,580 2,461,512 2,123,651
NON INTEREST INCOME Insurance commissions 90,743 83,390 362,209
376,489 Mortgage operations 30,713 53,672 65,320 134,639 Return
check charges 74,739 75,495 227,284 218,592 Increase cash value
life insurance 29,650 31,011 88,906 63,699 Other fees and charges
21,491 20,670 72,963 69,104 TOTAL NON INTEREST INCOME 247,336
264,238 816,682 862,523 NON INTEREST EXPENSE Salaries and employee
benefits 402,682 377,318 1,189,736 1,122,065 Occupancy and
equipment 75,556 94,048 246,015 260,305 Advertising and promotion
23,757 16,898 54,549 59,009 Data processing and outside service
fees 118,670 111,845 377,620 339,551 Professional fees 13,645
35,687 46,087 83,621 Supplies, telephone, and postage 26,529 37,912
90,375 93,888 Other 60,691 54,813 164,489 186,797 TOTAL NON
INTEREST EXPENSE 721,530 728,521 2,168,871 2,145,236 INCOME BEFORE
INCOME TAXES 358,287 327,297 1,109,323 840,938 INCOME TAXES 94,400
32,570 356,000 32,570 NET INCOME $263,887 $294,727 $753,323
$808,368 NET INCOME PER COMMON SHARE BASIC $0.19 $0.21 $0.54 $0.58
DILUTED $0.18 $0.21 $0.52 $0.57 WEIGHTED AVERAGE COMMON SHARES
BASIC 1,398,694 1,394,859 1,397,345 1,394,859 DILUTED 1,454,520
1,424,588 1,453,171 1,424,588 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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