LENOIR, N.C., Aug. 3 /PRNewswire-FirstCall/ -- Parkway Bank
(OTC:PKWY) (BULLETIN BOARD: PKWY) today reported earnings for the
three and six month periods ending June 30, 2007. Net income for
the second quarter of 2007 was $252,081 or $.18 per diluted share,
compared to $262,272 or $.18 per diluted share in the second
quarter of 2006. Net income for the six months ended June 30, 2007
was $513,578 or $.36 per diluted share, compared to $489,436 or
$.34 per diluted share for the six months ended June 30, 2006.
While Parkway's total assets of $102.3 million at June 30, 2007
remained relatively flat compared to total assets at December 31,
2006, net loans outstanding rose to $72.6 million at June 30, 2007
from $66.2 million at December 31, 2006. At June 30, 2007,
shareholders' equity was $13.9 million and the bank's book value
per share was $9.92. Parkway Bank President and CEO, Gary Clawson,
in commenting on the results, noted, "We are pleased with our
earnings performance through the first six months of 2007; net
income is up 5% compared to the same period in 2006. Non-interest
income continues to be strong, driven primarily by our insurance
and mortgage operations. Loans outstanding have consistently grown,
up nearly 10% during this same period. With all the recent news
about the troubles in the 'sub-prime' mortgage market, I am pleased
to say that Parkway has minimal exposure to this segment of the
market. High yielding, high risk credits have not been part of our
strategy. As to our expansion strategy, construction of our Granite
Falls branch is scheduled to begin within the next 30 days.
Customers, existing and future, shareholders and employees are all
looking forward to this addition to our franchise." 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 June 30 December 31, 2007 2006*
(Unaudited) ASSETS Cash and due from banks $592,693 $344,702
Federal funds sold 2,275,000 3,899,000 Interest bearing deposits
with other financial institutions - 5,000,000 Investment securities
available for sale, at fair value 19,369,244 20,205,928 Loans
73,510,195 67,093,826 Allowance for loan losses (948,692) (885,198)
NET LOANS 72,561,503 66,208,628 Accrued interest receivable 571,289
579,428 Bank premises and equipment 2,720,747 2,718,714 Stock in
Federal Home Loan Bank of Atlanta, at cost 185,200 180,000 Bank
owned life insurance 3,272,688 3,213,862 Foreclosed real estate -
35,000 Other assets 794,363 499,985 TOTAL ASSETS $102,342,727
$102,885,247 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits
Noninterest-bearing $8,584,918 $7,976,621 Savings 1,318,763
1,182,713 Money market and NOW 17,068,766 18,295,582 Time
60,185,142 60,239,876 TOTAL DEPOSITS 87,157,589 87,694,792
Repurchase agreements 919,496 1,296,416 Accrued expenses and other
liabilities 393,003 407,282 TOTAL LIABILITIES 88,470,088 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 5,377,282 5,361,564
Accumulated earnings 1,683,130 1,169,552 Accumulated other
comprehensive loss (181,243) (37,829) TOTAL STOCKHOLDERS' EQUITY
13,872,639 13,486,757 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$102,342,727 $102,885,247 *Derived for audited financial statements
PARKWAY BANK AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS
For The For The Three Three For The Six For The Six Months Months
Months Months June 30, June 30, June 30, June 30, 2007 2006 2007
2006 (Unaudited) (Unaudited) (Unaudited) (Unaudited) INTEREST
INCOME Loans $1,543,104 $1,289,639 $2,995,641 $2,507,153 Investment
securities available for sale 227,587 154,112 461,041 290,437
Federal funds sold 29,167 44,662 92,629 102,224 Interest bearing
deposits with other financial institutions 3,123 43,782 20,892
85,452 TOTAL INTEREST INCOME 1,802,981 1,532,195 3,570,203
2,985,266 INTEREST EXPENSE Money market, Now and savings deposits
147,880 116,741 301,399 230,390 Time deposits 735,792 537,747
1,469,680 1,024,822 Interest on federal funds purchased 7,754 -
7,754 - Repurchase agreements 1,977 3,104 3,993 6,023 TOTAL
INTEREST EXPENSE 893,403 657,592 1,782,826 1,261,235 NET INTEREST
INCOME 909,578 874,603 1,787,377 1,724,031 PROVISION FOR LOAN
LOSSES 75,000 45,000 112,500 95,000 NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 834,578 829,603 1,674,877 1,629,031 NON
INTEREST INCOME Insurance commissions 108,518 138,514 240,061
271,466 Mortgage operations 57,869 24,921 90,629 34,607 Return
check charges 73,825 82,199 127,360 152,545 Earnings from
bank-owned life insurance 31,638 29,055 58,826 59,256 Other fees
and charges 29,065 28,129 54,851 51,472 TOTAL NON INTEREST INCOME
300,915 302,818 571,727 569,346 NON INTEREST EXPENSE Salaries and
employee benefits 427,062 392,334 862,753 787,054 Occupancy and
equipment 91,227 89,757 169,158 170,459 Advertising and promotion
26,418 23,333 35,967 30,792 Data processing and outside service
fees 108,290 136,924 215,842 258,950 Professional fees 39,317 7,452
62,269 32,442 Supplies, telephone, and postage 22,330 30,429 55,271
63,846 Other 57,768 39,320 104,766 103,798 TOTAL NON INTEREST
EXPENSE 772,412 719,549 1,506,026 1,447,341 INCOME BEFORE INCOME
TAXES 363,081 412,872 740,578 751,036 INCOME TAXES 111,000 150,600
227,000 261,600 NET INCOME $252,081 $262,272 $513,578 $489,436 NET
INCOME PER COMMON SHARE BASIC $0.18 $0.19 $0.37 $0.35 DILUTED $0.18
$0.18 $0.36 $0.34 WEIGHTED AVERAGE COMMON SHARES BASIC 1,398,694
1,398,441 1,398,694 1,396,660 DILUTED 1,435,410 1,451,137 1,436,701
1,449,356 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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