Parkway Bank Reports Second Quarter 2011 Financial Results

Aug 16, 2011, 16:00 ET from Parkway Bank

LENOIR, N.C., Aug. 16, 2011 /PRNewswire/ -- Parkway Bank (OTCBB: PKWY), a North Carolina state chartered bank headquartered in Lenoir, North Carolina, announced its second quarter 2011 financial results today.

Net income (loss) for the second quarter of 2011 was ($1,370,000) compared to ($1,257,000) for the second quarter of 2010.  Basic and diluted income (loss) per share were ($.98) in the 2011 period compared to ($.90) for basic and diluted income (loss) per share in the 2010 period.  For the six months ended June 30, 2011, net income (loss) was ($1,667,000) compared to ($1,308,000) for the six months ended June 30, 2010.  Basic and diluted income (loss) per share were ($1.19) in the 2011 period compared to ($.94) in the 2010 period.

Total assets at June 30, 2011 were basically unchanged at $119.1 million, compared to $119.0 million at June 30, 2010. Total deposits increased to $112.0 million at June 30, 2011 from $107.7 million at June 30, 2010, an increase of $4.3 million or 4.0%.  During the same period, total loans decreased to $84.1 million from $85.3 million, a decrease of $1.2 million or 1.4%.

"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."

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 Per Share Data)

(Unaudited)














As of or For The


As of or For The




Three Months Ended


Six Months Ended




June 30 


June 30 




2011


2010


2011


2010

Income statement data:









Net interest income

$   852


$   807


$ 1,682


$ 1,682


Provision for loan losses

1,166


915


1,303


1,119


Net interest income (loss) after provision

(314)


(108)


379


563


Non interest income

238


313


468


746


Non interest expense

1,294


1,462


2,514


2,617


Income (loss) before income taxes

(1,370)


(1,257)


(1,667)


(1,308)


Income taxes (benefit)

-


-


-


-


Net income (loss)

($  1,370)


($  1,257)


($  1,667)


($  1,308)











Per share data and shares outstanding:









Basic income (loss) per share

($    .98)


($    .90)


(1.19)


(.94)


Diluted income (loss) per share

(.98)


(.90)


(1.19)


(.94)


Book value at period end

2.68


5.02


2.68


5.02


Weighted average common shares outstanding (000's):










Basic

1,397


1,397


1,397


1,397



Diluted

1,397


1,397


1,397


1,397


Shares outstanding at period end

1,397


1,397


1,397


1,397











Balance sheet data:









Total assets

$119,119


$119,073


-


-


Loans

84,101


85,251


-


-


Allowance for loan losses

3,216


3,627


-


-


Total deposits

112,028


107,664


-


-


Other borrowed funds

3,000


4,000


-


-


Shareholders' equity

3,742


7,013


-


-











Selected performance ratios:









Return on average assets (%)

(4.57)


(4.24)


(2.78)


(2.23)


Return on average shareholders' equity (%)

(114.43)


(63.44)


(70.21)


(31.47)


Net interest margin (%) (1)

3.27


3.15


3.20


3.31


Net interest spread (%) (2)

3.26


3.14


3.19


3.30


Efficiency ratio (%) (3)

118.67


130.54


116.92


107.79





















(1) Net interest margin is net interest income (annualized) divided by average interest-earning assets.

(2) Net interest spread is the difference between the average yield on interest-earning assets and the average

cost of interest-bearing liabilities.

(3) The efficiency ratio is non interest expense divided by the total of net interest income and non interest

income.



SOURCE Parkway Bank



RELATED LINKS

http://www.parkwaybanknc.com