LENOIR, N.C., April 16 /PRNewswire-FirstCall/ -- Parkway Bank
(OTC Bulletin Board: PKWY), a North Carolina
state chartered bank headquartered in Lenoir, North Carolina, announced its fourth
quarter and full year 2009 financial results today.
Net income (loss) for the fourth quarter of 2009 was
($1,899,000) compared to ($1,283,000) for the fourth quarter of 2008.
Basic and diluted income (loss) per share were ($1.36) in the 2009 period, compared to
($.92) for basic and diluted income
per share in the 2008 period. For the full year of 2009, net
income (loss) was ($4,294,000)
compared to ($1,882,000) in the full
year of 2008. Basic and diluted income (loss) per share were
($3.07) and ($1.34) in the respective periods.
Due to the deterioration in capital, we are reducing our asset
size. Total assets at December 31,
2009 were $116.8 million,
compared to $125.3 million at
December 31, 2008, a decrease of
$8.5 million or 6.7%. Total
deposits declined to $105.3 million
at December 31, 2009 from
$111.8 million at December 31, 2008, a decrease of $6.5 million or 5.8%. During the same
period, total loans decreased to $88.7
million from $95.2 million, a
decrease $6.5 million or 6.9%.
"We continue to be negatively impacted by the poor economic and
financial conditions both on a national and local level. The
positive signs that we are seeing in our business such as an
improving net interest margin are being more than offset by the
overwhelming burden of asset quality issues," said James E. Sponenberg, III, President and CEO of
Parkway Bank. "The asset quality issues are primarily from
over twenty-three million dollars in
participation loans made from 2006 to 2007 with Silverton, a bank
that failed in May of 2009. Over the last two years we have
lost over five million dollars
directly attributable to those loans. We have recognized the
losses and are ready to move forward. We are looking at all
possible strategic alternatives, including the raising of
additional capital. We will begin a capital raising effort
within the next few weeks. With our continued operating
losses, we are 'Adequately Capitalized' by all regulatory measures,
but are striving to regain 'Well Capitalized' status".
Parkway Bank is a full-service community bank. Founded in
2001, the Bank has offices in Lenoir, Granite
Falls and Hudson, NC.
This Press Release may contain, among other things, certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including, without
limitation, (i) statements regarding certain of the Bank's goals
and expectations with respect to earnings, earnings per share,
revenue, expenses and the growth rate in such items, as well as
other measures of economic performance, including statements
relating to estimates of credit quality trends, and (ii) statements
preceded by, followed by or that include the words "may", "could",
"should", "would", "believe", "anticipate", "estimate", "expect",
"intend", "plan", "projects", "outlook", or similar expressions.
These statements are based upon current beliefs and
expectations of the Bank's management and are subject to
significant risks and uncertainties. Actual results may
differ from those set forth in the forward-looking statements.
These forward-looking statements involve certain risks and
uncertainties that are subject to change based on various factors
(many of which are beyond the Bank's control). The Bank
undertakes no obligation to update any forward-looking statements.
PARKWAY
BANK
Financial
Highlights
(In Thousands
Except Share and Per Share Data)
(Unaudited)
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As of or For
The
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As of or For
The
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Three Months
Ended
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Year
Ended
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December
31
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December
31
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2009
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2008
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2009
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2008
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Income statement data:
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Net interest income
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$
910
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774
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3,105
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3,283
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Provision for loan losses
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1,409
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1,849
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3,375
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3,544
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Net interest income after
provision
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(499)
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(1,075)
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(270)
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(261)
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Non interest income
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242
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123
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921
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886
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Non interest expense
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1,002
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1,085
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4,305
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3,886
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Income (loss) before income
taxes
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(1,259)
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(2,037)
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(3,654)
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(3,261)
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Income taxes (benefit)
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640
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(754)
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640
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(1,379)
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Net income (loss)
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(1,899)
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(1,283)
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(4,294)
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(1,882)
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Per share data and shares
outstanding:
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Basic income (loss) per
share
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($
1.36)
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(.92)
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(3.07)
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(1.34)
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Diluted income (loss) per
share
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(1.36)
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(.92)
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(3.07)
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(1.34)
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Book value at period end
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5.85
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8.92
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5.85
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8.92
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Weighted average common shares
outstanding:
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Basic
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1,397
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1,400
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1,397
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1,408
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Diluted
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1,397
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1,400
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1,397
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1,408
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Shares outstanding at period
end
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1,397
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1,397
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1,397
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1,397
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Balance sheet data:
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Total assets
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$116,841
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125,281
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-
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-
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Loans
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88,690
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95,237
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-
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-
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Allowance for loan losses
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3,315
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3,142
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-
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-
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Total deposits
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105,276
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111,812
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-
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-
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Other borrowed funds
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3,000
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447
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-
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-
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Shareholders' equity
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8,176
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12,466
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-
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-
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Selected performance
ratios:
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Return on average assets
(%)
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(6.19)
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(4.04)
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(3.44)
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(1.60)
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Return on average shareholders' equity
(%)
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(73.50)
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(37.79)
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(37.68)
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(13.36)
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Net interest margin (%) (1)
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3.27
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2.69
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2.85
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3.06
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Net interest spread (%) (2)
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3.15
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2.38
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2.77
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2.65
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Efficiency ratio (%) (3)
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86.98
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120.96
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106.94
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93.21
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(1)
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Net interest margin is net interest
income (annualized) divided by average interest-earning
assets.
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(2)
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Net interest spread is the difference
between the average yield on interest-earning assets and the
average cost of interest-bearing liabilities.
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(3)
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The efficiency ratio is non interest
expense divided by the total of net interest income and non
interest income.
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SOURCE Parkway Bank