LENOIR, N.C., May 8 /PRNewswire-FirstCall/ -- Parkway Bank
(OTC:PKWY) (BULLETIN BOARD: PKWY) today reported earnings for the
three-month period ending March 31, 2008. Net income for the first
quarter of 2008 was $120,978, or $0.08 per diluted share, a
decrease of 54% from $261,497, or $0.18 per diluted share, for the
first quarter of 2007. Parkway's total assets grew 8% from $104.1
million at March 31, 2007 to $112.1 million at March 31, 2008. Net
loans outstanding rose 22% to $85.5 million from $70.3 million,
while deposits increased 7% to $95.3 million at March 31, 2008 from
$89.0 million at March 31, 2007. At March 31, 2008, shareholders'
equity was $14.6 million, representing an equity-to-assets ratio of
13.0%. The Bank's book value per share was $10.36. Parkway Bank
President and CEO, Jim Sponenberg, in commenting on the results,
noted, "While the current operating environment for banks is quite
challenging, we were encouraged by the Bank's solid loan growth,
which reflects the resilience of our markets. Although tighter
margins and the expenses associated with our new branch in Granite
Falls which to opened May 7 will likely keep some pressure on
near-term earnings, we are taking the steps to build long-term
earnings growth. The Bank remains well capitalized, and we have
minimal direct exposure to the subprime market that has recently
been so prevalent in the headlines." Parkway Bank is a community
bank operating three 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 SHEETS March 31, December 31, 2008 2007
(Unaudited) ASSETS Cash and due from banks $1,714,151 $1,478,012
Federal funds sold - 2,064,000 Investment securities available for
sale, at fair value 16,532,733 18,092,776 Loans 86,531,636
81,555,403 Allowance for loan losses (1,033,550) (936,426) NET
LOANS 85,498,086 80,618,977 Accrued interest receivable 643,114
603,613 Bank premises and equipment 3,312,964 2,860,039 Stock in
Federal Home Loan Bank of Atlanta, at cost 197,900 185,200 Bank
owned life insurance 3,360,793 3,332,906 Foreclosed real estate
130,000 - Other assets 719,906 742,595 TOTAL ASSETS $112,109,647
$109,978,118 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits
Noninterest-bearing $6,908,624 $7,087,958 Savings 1,437,291
1,305,567 Money market and NOW 19,034,357 20,177,514 Time
67,917,149 65,476,844 TOTAL DEPOSITS 95,297,421 94,047,883
Repurchase agreements 937,926 850,691 Federal funds purchased
474,000 - Litigation expenses 229,600 229,600 Accrued expenses and
other liabilities 546,936 473,134 TOTAL LIABILITIES 97,485,883
95,601,308 Stockholders' equity Common stock, $5 par value,
20,000,000 shares authorized; 1,411,940 issued and outstanding
7,059,700 7,059,700 Additional paid-in capital 5,432,196 5,432,196
Accumulated earnings 1,992,188 1,871,210 Accumulated other
comprehensive income 139,680 13,704 TOTAL STOCKHOLDERS' EQUITY
14,623,764 14,376,810 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$112,109,647 $109,978,118 PARKWAY BANK AND SUBSIDIARY CONSOLIDATED
STATEMENTS OF OPERATIONS For The Three For The Three Months Months
March 31, 2008 March 31, 2007 (Unaudited) (Unaudited) INTEREST
INCOME Loans $1,548,272 $1,452,537 Investments 194,905 233,454
Federal funds sold 7,324 63,462 Interest bearing deposits with
other financial institutions 3,752 17,769 TOTAL INTEREST INCOME
1,754,253 1,767,222 INTEREST EXPENSE Money Market, NOW and savings
deposits 139,533 153,519 Time deposits 761,580 733,888 Interest on
federal funds purchased 1,245 - Repurchase agreements 2,332 2,016
TOTAL INTEREST EXPENSE 904,690 889,423 NET INTEREST INCOME 849,563
877,799 PROVISION FOR LOAN LOSSES 102,163 37,500 NET INTEREST
INCOME AFTER PROVISION FOR LOAN LOSSES 747,400 840,299 NON INTEREST
INCOME Insurance commissions 108,144 131,543 Mortgage operations
33,480 32,760 Return check charges 70,275 53,535 Earnings from bank
owned life insurance 27,867 27,188 Other fees and charges 29,952
25,786 TOTAL NON INTEREST INCOME 269,718 270,812 NON INTEREST
EXPENSE Salaries and employee benefits 459,122 435,691 Occupancy
and equipment 81,501 77,931 Advertising and promotion 5,657 9,549
Data processing and outside service fees 114,535 107,552
Professional fees 117,277 22,952 Supplies, telephone and postage
29,817 32,941 Other 74,231 46,998 TOTAL NON INTEREST EXPENSE
882,140 733,614 INCOME BEFORE INCOME TAXES 134,978 377,497 INCOME
TAXES 14,000 116,000 NET INCOME $120,978 $261,497 NET INCOME PER
COMMON SHARE BASIC BASIC $0.09 $0.19 DILUTED DILUTED $0.08 $0.18
WEIGHTED AVERAGE COMMON SHARES BASIC BASIC 1,411,940 1,398,694
DILUTED DILUTED 1,424,744 1,438,017 DATASOURCE: Parkway Bank
CONTACT: James E. Sponenberg, President and CEO, Parkway Bank,
Lenoir, North Carolina, +1-828-758-1414 Web site:
http://www.parkwaybanknc.com/
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