LENOIR, N.C., Oct. 24 /PRNewswire-FirstCall/ -- Parkway Bank
(OTC:PKWY) (BULLETIN BOARD: PKWY) today announced record earnings
for the three and nine month periods ended September 30, 2005. Net
income for the third quarter of 2005 was $294,727 or $.23 per basic
and diluted share, an increase of $192,194 or 187.45% over net
income of $102,533 or $.09 per basic and diluted share in the third
quarter of 2004. Net income for the first nine months of 2005 was
$808,368 or $.64 per basic share and $.62 per diluted share, up
$675,523, or 508.50% over net income of $132,845 or $.15 per basic
and diluted share for the first nine months of 2004. Parkway's
total assets grew by 15.50%, from $73.9 million at December 31,
2004 to $85.3 million at September 30, 2005. Net loans outstanding
rose 12.64% during the same period from $51.1 million to $57.5
million, while deposits totaled $71.2 million at September 30, 2005
which represents a 17.04% increase over deposits of $60.8 million
at December 31, 2004. At September 30, 2005, shareholders' equity
was $12.2 million and the bank's book value per share of the Bank's
common stock was $9.59. Parkway Bank President and CEO, Gary
Clawson, in commenting on the results, noted, "While earnings in
fiscal year 2005 were expected to be respectable, our financial
performance through the first nine months in FY05 has exceeded
expectations. A number of factors are responsible for the positive
earnings including expense control, continued loan and deposit
growth, actions by the Federal Open Market Committee, but
particularly the efficient and dedicated effort put forth by each
team member at Parkway. Simply put, we have great people. " 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, 2005 2004*
(Unaudited) ASSETS Cash and due from banks $1,628,550 $1,112,971
Federal funds sold 7,891,000 6,507,000 Investment securities
available for sale, at fair value 11,007,721 11,337,962 Loans
58,368,378 51,832,308 Allowance for loan losses (837,541) (758,328)
NET LOANS 57,530,837 51,073,980 Accrued interest receivable 332,064
277,211 Bank premises and equipment 2,857,248 2,928,724 Stock in
Federal Home Loan Bank of Atlanta, at cost 147,800 113,800 Bank
owned life insurance 3,063,699 - Other assets 861,361 518,465 TOTAL
ASSETS $85,320,280 $73,870,113 LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits Non-interest-bearing $6,305,044 $4,939,465 Savings
1,361,247 1,055,679 Money market and NOW 17,602,408 15,705,470 Time
45,913,238 39,119,200 TOTAL DEPOSITS 71,181,937 60,819,814
Repurchase agreements 1,569,393 1,440,369 Accrued expenses and
other Liabilities 406,143 217,325 TOTAL LIABILITIES 73,157,473
62,477,508 Stockholders' equity Common stock,$5 par value,
20,000,000 shares authorized; 1,267,895 issued and outstanding
5,763,600 5,763,600 Additional paid-in capital 5,916,915 5,916,915
Retained earnings (deficit) 566,118 (242,250) Accumulated other
comprehensive loss (83,826) (45,660) TOTAL STOCKHOLDERS' EQUITY
12,162,807 11,392,605 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$85,320,280 $73,870,113 PARKWAY BANK AND SUBSIDIARY CONSOLIDATED
STATEMENT OF OPERATIONS For The Three For The Three For The Nine
For The Nine Months Months Months Months Sept. 30, Sept. 30, Sept.
30, Sept. 30, 2005 2004 2005 2004 INTEREST INCOME (Unaudited)
(Unaudited) (Unaudited) (Unaudited) Loans $1,106,580 $750,815
$3,040,584 $2,063,811 Investments 84,798 76,667 248,138 191,106
Federal funds sold and deposits in other banks 42,703 27,862 93,834
57,370 TOTAL INTEREST INCOME 1,234,081 855,344 3,382,556 2,312,287
INTEREST EXPENSE Money market, Now and savings deposits 78,205
36,911 182,636 109,135 Time deposits 346,088 286,549 918,261
837,300 Securities sold under repurchase agreements 3,208 2,655
11,008 7,862 TOTAL INTEREST EXPENSE 427,501 326,115 1,111,905
954,297 NET INTEREST INCOME 806,580 529,229 2,270,651 1,357,990
PROVISION FOR LOAN LOSSES 15,000 39,500 147,000 72,250 NET INTEREST
INCOME AFTER PROVISION FOR LOAN LOSSES 791,580 489,729 2,123,651
1,285,740 NON INTEREST INCOME Insurance commissions 83,390 103,158
376,489 342,275 Mortgage operations 53,672 34,245 134,639 131,192
Increase cash value life insurance 31,011 - 63,699 - Other fees and
charges 96,165 95,329 287,696 223,109 TOTAL NON INTEREST INCOME
264,238 232,732 862,523 696,576 NON INTEREST EXPENSE Salaries and
employee benefits 377,318 347,601 1,122,065 1,040,294 Occupancy and
equipment 94,048 84,891 260,305 230,561 Advertising and promotion
16,898 11,905 59,009 60,812 Data processing and outside service
fees 111,845 103,506 339,551 285,266 Professional fees 35,687 6,659
83,621 41,087 Supplies, telephone, and postage 37,912 31,788 93,888
97,587 Other 54,813 33,578 186,797 93,864 TOTAL NON INTEREST
EXPENSE 728,521 619,928 2,145,236 1,849,471 INCOME BEFORE INCOME
TAXES 327,297 102,533 840,938 132,845 INCOME TAXES 32,570 - 32,570
- NET INCOME $294,727 $102,533 $808,368 $132,845 NET INCOME PER
COMMON SHARE BASIC $0.23 $0.09 $0.64 $0.15 DILUTED $0.23 $0.09
$0.62 $0.15 WEIGHTED AVERAGE COMMON SHARES BASIC 1,267,895
1,108,208 1,267,895 888,897 DILUTED 1,295,427 1,135,500 1,295,427
915,559 DATASOURCE: Parkway Bank CONTACT: Gary T. Clawson,
President and CEO of Parkway Bank, +1-828-758-1414 Web site:
http://www.parkwaybanknc.com/
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