LENOIR, N.C., May 10 /PRNewswire-FirstCall/ -- Parkway Bank
(OTC:PKWY) (BULLETIN BOARD: PKWY) today reported earnings for the
three-month period ending March 31, 2007. Net income for the first
quarter of 2007 was $261,497 or $.18 per diluted share, an increase
of 15.11% over net income of $227,164 or $.16 per diluted share for
the first quarter of 2006. Parkway's total assets grew by 13%, from
$91.8 million at March 31, 2006 to $104.1 million at March 31,
2007. Net loans outstanding rose 16% to $70.3 million from $60.8
million, while deposits also increased 16% to $89.0 million at
March 31, 2007 from $77.1 million at March 31, 2006. At March 31,
2007, shareholders' equity was $13.7 million and the bank's book
value per share was $9.82. Parkway Bank President and CEO, Gary
Clawson, in commenting on the results, noted, "Despite net interest
margin pressures felt throughout the banking industry, we are
pleased with our first quarter 2007 earnings performance. Loans
outstanding should continue to grow as we maintain emphasis on
deploying excess liquidity into higher earning assets. During the
first quarter of 2007 we have experienced an increased level of
competition in the local deposit market and our employees have all
been focusing on expanding customer relationships, particularly the
non-interest bearing deposit segment. Loan portfolio growth,
interest expense control along with further improvement in our
efficiency ratio continues to be priority for fiscal year 2007."
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/. PARKWAY BANK AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS March 31, December 31, 2007 2006*
(Unaudited) ASSETS Cash and due from banks $1,428,064 $344,702
Federal funds sold 5,634,000 3,899,000 Interest bearing deposits
with other financial institutions - 5,000,000 Investment securities
available for sale, at fair value 19,498,334 20,205,928 Loans
71,214,347 67,093,826 Allowance for loan losses (922,048) (885,198)
NET LOANS 70,292,299 66,208,628 Accrued interest receivable 608,591
579,428 Bank premises and equipment 2,682,609 2,718,714 Stock in
Federal Home Loan Bank of Atlanta, at cost 185,200 180,000 Bank
owned life insurance 3,241,050 3,213,862 Foreclosed real estate -
35,000 Other assets 546,839 499,985 TOTAL ASSETS $104,116,986
$102,885,247 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits
Non-interest-bearing $9,298,054 $7,976,621 Savings 1,335,916
1,182,713 Money market and NOW 17,349,311 18,295,582 Time
61,055,602 60,239,876 TOTAL DEPOSITS 89,038,883 87,694,792
Repurchase agreements 807,213 1,296,416 Accrued expenses and other
Liabilities 537,945 407,282 TOTAL LIABILITIES 90,384,041 89,398,490
Stockholders' equity Common stock, $5 par value, 20,000,000 shares
authorized; 1,398,694 issued and outstanding, respectively
6,993,470 6,993,470 Additional paid-in capital 5,376,142 5,361,564
Accumulated earnings 1,431,049 1,169,552 Accumulated other
comprehensive loss (67,716) (37,829) TOTAL STOCKHOLDERS' EQUITY
13,732,945 13,486,757 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$104,116,986 $102,885,247 PARKWAY BANK AND SUBSIDIARY CONSOLIDATED
STATEMENT OF OPERATIONS For The Three For The Three Months Months
March 31, 2007 March 31, 2006 (Unaudited) (Unaudited) INTEREST
INCOME Loans $1,452,537 $1,217,514 Investment securities available
for sale 233,454 136,325 Federal funds sold 63,462 57,562 Interest
bearing deposits with other financial institutions 17,769 41,670
TOTAL INTEREST INCOME 1,767,222 1,453,071 INTEREST EXPENSE Money
market, Now and savings deposits 153,519 113,649 Time deposits
733,888 487,075 Repurchase agreements 2,016 2,919 TOTAL INTEREST
EXPENSE 889,423 603,643 NET INTEREST INCOME 877,799 849,428
PROVISION FOR LOAN LOSSES 37,500 50,000 NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 840,299 799,428 NON INTEREST INCOME
Insurance commissions 131,543 132,952 Mortgage operations 32,760
9,686 Return check charges 53,535 70,346 Earnings from bank-owned
life insurance 27,188 30,201 Other fees and charges 25,786 23,343
TOTAL NON INTEREST INCOME 270,812 266,528 NON INTEREST EXPENSE
Salaries and employee benefits 435,691 394,720 Occupancy and
equipment 77,931 80,702 Advertising and promotion 9,549 7,459 Data
processing and outside service fees 107,552 122,026 Professional
fees 22,952 24,990 Supplies, telephone, and postage 32,941 33,417
Other 46,998 64,478 TOTAL NON INTEREST EXPENSE 733,614 727,792
PROFIT BEFORE INCOME TAXES 377,497 338,164 INCOME TAXES 116,000
111,000 NET INCOME $261,497 $227,164 NET INCOME PER COMMON SHARE
BASIC $0.19 $0.16 DILUTED $0.18 $0.16 WEIGHTED AVERAGE COMMON
SHARES BASIC 1,398,694 1,394,685 DILUTED 1,438,017 1,436,882 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. 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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