Parkway Bank Announces Third Quarter Earnings LENOIR, N.C., Nov. 12 /PRNewswire-FirstCall/ -- Parkway Bank (OTC:PKWY) (BULLETIN BOARD: PKWY) today reported record earnings for the three-month period ending September 30, 2004. Net income for the third quarter of 2004 was $102,533, an increase of 22.44% over net income of $83,740 for the third quarter of 2003. Net income for the first nine months of 2004 was $132,845, up 28.51% over net income of $103,376 for the first nine months of 2003. Parkway's total assets grew by 26.19%, from $56.9 million at December 31, 2003 to $71.8 million at September 30, 2004. Net loans outstanding rose 17.83% during the same period from $41.8 million to $49.2 million, while deposits totaled $59.2 million at September 30, 2004, which represents an 18.12% increase over deposits of $50.1 million at December 31, 2003. At September 30, 2004, shareholders' equity was $11.2 million and the bank's book value per share was $9.75. Parkway Bank President and CEO Gary Clawson, in commenting on the results, noted, "The quarter ending September 30, 2004 marks our sixth consecutive quarter of profitability, and we are pleased to report these record earnings results to our shareholders. Our goals for the remainder of 2004 will be continued core deposit growth and increased total revenue." 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/ . 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 SHEET September 30, December 31, 2004 2003* (Unaudited) =============== =============== ASSETS Cash and due from banks $1,114,641 $509,920 Federal funds sold 5,359,000 5,150,000 Investment securities available for sale, at fair value 12,097,752 6,046,517 Loans 49,973,192 42,473,796 Allowance for loan losses (743,619) (693,050) --------------- --------------- NET LOANS 49,229,573 41,780,746 Accrued interest receivable 260,421 223,345 Bank premises and equipment 2,974,927 2,912,086 Stock in Federal Home Loan Bank of Atlanta, at cost 165,200 122,200 Other assets 601,643 154,660 --------------- --------------- TOTAL ASSETS $71,803,157 $56,899,474 =============== =============== LIABILITIES AND STOCKHOLDERS' EQUITY Deposits Non-interest-bearing $5,218,050 $3,701,270 Savings 995,607 431,682 Money market and NOW 13,846,555 12,087,158 Time 39,114,926 33,878,076 --------------- --------------- TOTAL DEPOSITS 59,175,138 50,098,186 Repurchase agreements 1,127,970 995,134 Accrued expenses and other Liabilities 259,824 182,613 --------------- --------------- TOTAL LIABILITIES 60,562,932 51,275,933 Stockholders' equity Common stock, $5 par value, 20,000,000 shares authorized; 1,152,720 and 602,763 shares issued and outstanding, respectively 5,763,600 3,013,815 Additional paid-in capital 5,917,815 3,153,827 Accumulated deficit (431,291) (564,136) Accumulated other comprehensive (loss) income (9,899) 20,035 -------------- -------------- TOTAL STOCKHOLDERS' EQUITY 11,240,225 5,623,541 -------------- -------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $71,803,157 $56,899,474 =============== =============== PARKWAY BANK AND SUBSIDIARY CONSOLIDATED STATEMENT OF OPERATIONS For The For The For The For The Three Months Three Months Nine Months Nine Months Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2004 2003 2004 2003 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ============ =========== ============ =========== INTEREST INCOME Loans $750,815 $588,670 $2,063,811 $1,628,866 Investments 76,667 37,663 191,106 105,771 Federal funds sold and deposits in other banks 27,862 12,416 57,370 38,162 ------------ ----------- ------------ ----------- TOTAL INTEREST INCOME 855,344 638,749 2,312,287 1,772,799 ------------ ----------- ------------ ----------- INTEREST EXPENSE Money market, Now and savings deposits 36,911 37,343 109,135 107,400 Time deposits 286,549 224,293 837,300 627,294 Securities sold under repurchase agreements 2,655 2,554 7,862 8,798 ------------ ----------- ------------ ----------- TOTAL INTEREST EXPENSE 326,115 264,190 954,297 743,492 ------------ ----------- ------------ ----------- NET INTEREST INCOME 529,229 374,559 1,357,990 1,029,307 PROVISION FOR LOAN LOSSES 39,500 36,000 72,250 162,600 ------------ ----------- ------------ ----------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 489,729 338,559 1,285,740 866,707 ------------ ----------- ------------ ----------- NON INTEREST INCOME Insurance commissions 103,158 106,434 342,275 336,721 Mortgage operations 34,245 101,046 131,192 258,384 Other fees and charges 95,329 27,693 223,109 76,431 Gains on securities sold - - - - ------------ ----------- ------------ ----------- TOTAL NON INTEREST INCOME 232,732 235,173 696,576 671,536 ------------ ----------- ------------ ----------- NON INTEREST EXPENSE Salaries and employee benefits 347,601 304,595 1,040,294 900,480 Occupancy and equipment 84,891 55,293 230,561 159,270 Advertising and promotion 11,905 13,498 60,812 32,955 Data processing and outside service fees 103,506 56,173 285,266 169,138 Professional fees 6,659 5,896 41,087 24,445 Supplies, telephone, and postage 31,788 20,166 97,587 61,318 Other 33,578 34,371 93,864 87,261 ------------ ----------- ------------ ----------- TOTAL NON INTEREST EXPENSE 619,928 489,992 1,849,471 1,434,867 ------------ ----------- ------------ ----------- PROFIT (LOSS) BEFORE INCOME TAXES 102,533 83,740 132,845 103,376 INCOME TAXES - - - - ------------ ----------- ------------ ----------- NET INCOME (LOSS) $102,533 $83,740 $132,845 $103,376 ============ =========== ============ =========== NET INCOME (LOSS) PER COMMON SHARE BASIC $0.10 $0.13 $0.17 $0.16 DILUTED $0.10 $0.12 $0.17 $0.15 WEIGHTED AVERAGE COMMON SHARES BASIC 993,033 663,012 773,822 663,012 DILUTED 1,009,897 686,812 790,686 686,812 DATASOURCE: Parkway Bank CONTACT: Gary T. Clawson, President and CEO of Parkway Bank, +1-828-758-1414 Web site: http://www.parkwaybanknc.com/

Copyright