Parkway Bank Reports Third Quarter 2011 Financial Results

News provided by

Parkway Bank

Nov 15, 2011, 04:01 ET

LENOIR, N.C., Nov. 15, 2011 /PRNewswire/ -- Parkway Bank (OTCBB: PKWY), a North Carolina state chartered bank headquartered in Lenoir, North Carolina, announced its third quarter 2011 financial results today.

Net income (loss) for the third quarter of 2011 was ($19,000) compared to ($295,000) for the third quarter of 2010.  Basic and diluted income (loss) per share were ($.01) in the 2011 period compared to ($.21) for basic and diluted income (loss) per share in the 2010 period.  For the nine months ended September 30, 2011, net income (loss) was ($1,686,000) compared to ($1,603,000) for the nine months ended September 30, 2010.  Basic and diluted income (loss) per share were ($1.20) in the 2011 period compared to ($1.15) in the 2010 period.

Total assets at September 30, 2011 were basically unchanged at $115.8 million, compared to $115.8 million at September 30, 2010. Total deposits increased to $108.7 million at September 30, 2011 from $105.6 million at September 30, 2010, an increase of $3.1 million or 2.9%.  During the same period, total loans decreased to $76.2 million from $83.1 million, a decrease of $6.9 million or 8.3%.

"The performance of a community bank is expected to reflect the community's economy, and we do.  Yet, we are hopeful we can meet the challenges of the local/national/global economy and perform well.  We saw encouraging signs during the third quarter with improvement in the reduction of a concentration in commercial real estate loans," stated James E. Sponenberg, III, President and CEO of Parkway Bank.  "We continue to address the issues raised by the Consent Order entered into with the FDIC and NC Commissioner of Banks in 2010.  We have retained the services of McKinnon and Company of Norfolk, Virginia to explore and determine the best option available to Parkway to raise capital.  We anticipate announcing 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 Share and Per Share Data)

(Unaudited)















As of or For The


As of or For The





Three Months Ended

Nine Months Ended




September 30

September 30




2011

2010

2011

2010

Income statement data:








Net interest income

$    921

808

$  2,602

2,490

Provision for loan losses

(26)

156

1,277

1,275

Net interest income (loss) after provision

947

652

1,325

1,215

Non interest income

265

256

734

1,003

Non interest expense

1,231

1,203

3,745

3,821

Income (loss) before income taxes

(19)

(295)

(1,686)

(1,603)

Income taxes (benefit)

-

-

-

-

Net income (loss)

($     19)

(295)

($  1,686)

(1,603)











Per share data and shares outstanding:








Basic income (loss) per share

($    .01)

(   .21)

(1.20)

(1.15)

Diluted income (loss) per share

(.01)

(.21)

(1.20)

(1.15)

Book value at period end

2.74

4.86

2.74

4.86

Weighted average common shares outstanding:









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

$115,838

115,845

-

-

Loans


76,160

83,057

-

-

Allowance for loan losses

2,401

3,152

-

-

Total deposits

108,676

105,617

-

-

Other borrowed funds

3,000

3,000

-

-

Shareholders' equity

3,832

6,790

-

-











Selected performance ratios:








Return on average assets (%)

(.06)

(.99)

(1.95)

(1.82)

Return on average shareholders' equity (%)

(2.09)

(16.95)

(63.68)

(27.20)

Net interest margin (%) (1)

3.57

3.18

3.46

3.25

Net interest spread (%) (2)

3.56

3.16

3.47

3.24

Efficiency ratio (%) (3)

103.79

113.04

112.25

109.39






















(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

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