LENOIR, N.C., Aug. 18 /PRNewswire-FirstCall/ -- Parkway Bank
(OTC Bulletin Board: PKWY), a North Carolina
state chartered bank headquartered in Lenoir, North Carolina, announced its second
quarter 2010 financial results today.
Net income (loss) for the second quarter of 2010 was
($1,257,000) compared to ($952,000) for the second quarter of 2009.
Basic and diluted income (loss) per share were ($.90) in the 2010 period compared to
($.68) for basic and diluted income
(loss) per share in the 2009 period. For the six months ended
June 30, 2010, net income (loss) was
($1,308,000) compared to ($1,341,000) for the six months ended
June 30, 2009. Basic and
diluted income (loss) per share were ($.94) in the 2010 period compared to
($.96) in the 2009 period.
Due to the continued deterioration in our capital, we have been
limiting our asset growth. Total assets at June 30, 2010 were $119.1
million, compared to $128.0
million at June 30, 2009 a
decrease of $8.9 million or 7.0%.
Total deposits declined to $107.7
million at June 30, 2010 from
$115.6 million at June 30, 2009 a decrease of $7.9 million or 6.9%. During the same
period, total loans decreased to $85.3
million from $92.5 million, a
decrease of $7.2 million or 7.8%.
"We are a community bank whose performance is reflective of our
community's economy. We continue to be negatively impacted by
poor economic and financial conditions both on a national and local
level. We still have significant asset quality issues that we
deal with daily, particularly in our participation loan and
foreclosed real estate portfolios," said James E. Sponenberg, III, President and CEO of
Parkway Bank. "We are making progress in dealing with the
issues raised in the Consent Order recently entered into with the
FDIC and NC State Banking Commission. One of the primary
issues involves the raising of additional capital and we are
working diligently to announce a capital raising plan in the near
future. 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.
Additionally, the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 ("the Act") was signed into law on
July 21, 2010. The Act is a
significant piece of legislation that will have major effects on
the financial services industry, including the organization,
financial condition and operations of banks and bank holding
companies. Management is currently evaluating the impact of the
Act; however, uncertainty remains as to its operational impact,
which could have a material adverse impact on the Bank's business,
results of operations and financial condition. Many of the
provisions of the Act are aimed at financial institutions that are
significantly larger than the Bank. Notwithstanding this, there are
many other provisions that the Bank is subject to and will have to
comply with, including any new rules applicable to the Bank
promulgated by the Bureau of Consumer Financial Protection, a new
regulatory body dedicated to consumer protection. As rules and
regulations are promulgated by the agencies responsible for
implementing and enforcing the Act, the Bank will have to address
each to ensure compliance with applicable provisions of the Act and
compliance costs are expected to increase.
PARKWAY BANK
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Financial
Highlights
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(In Thousands Except Share and
Per Share Data)
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(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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Six Months Ended
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June 30
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June 30
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2010
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2009
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2010
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2009
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Income statement
data:
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Net interest income
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$ 807
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704
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$ 1,682
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1,422
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Provision for loan
losses
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915
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716
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1,119
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1,282
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Net interest income (loss) after
provision
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(108)
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(12)
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563
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140
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Non interest income
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313
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220
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746
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448
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Non interest expense
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1,462
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1,160
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2,617
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2,225
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Income (loss) before income
taxes
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(1,257)
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(952)
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(1,308)
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(1,637)
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Income taxes
(benefit)
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-
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-
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-
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(296)
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Net income (loss)
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($ 1,257)
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(952)
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($ 1,308)
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(1,341)
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Per share data and shares
outstanding:
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Basic income (loss) per
share
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($
.90)
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(.68)
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(.94)
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(.96)
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Diluted income (loss) per
share
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(.90)
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(.68)
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(.94)
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(.96)
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Book value at period
end
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5.02
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7.96
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5.02
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7.96
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Weighted average common shares
outstanding:
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Basic
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1,397
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1,397
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1,397
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1,397
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Diluted
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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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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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$119,073
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127,997
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-
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-
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Loans
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85,251
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92,507
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-
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-
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Allowance for loan
losses
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3,627
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2,246
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-
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-
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Total deposits
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107,664
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115,598
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-
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-
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Other borrowed funds
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4,000
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503
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-
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-
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Shareholders' equity
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7,013
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11,123
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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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(4.24)
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(2.99)
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(2.23)
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(2.13)
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Return on average shareholders'
equity (%)
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(63.44)
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(31.89)
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(31.47)
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(22.26)
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Net interest margin (%)
(1)
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3.15
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2.61
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3.31
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2.61
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Net interest spread (%)
(2)
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3.14
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2.58
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3.30
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2.52
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Efficiency ratio (%)
(3)
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130.54
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125.44
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107.79
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118.97
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(1) Net interest margin is net
interest income (annualized) divided by average interest-earning
assets.
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(2) Net interest spread is the
difference between the average yield on interest-earning assets and
the average
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cost of interest-bearing
liabilities.
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(3) The efficiency ratio is non
interest expense divided by the total of net interest income and
non interest
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income.
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SOURCE Parkway Bank
Copyright . 18 PR Newswire