Parkway Bank Reports Third Quarter 2009 Financial Results
November 17 2009 - 8:00AM
PR Newswire (US)
LENOIR, N.C., Nov. 17 /PRNewswire-FirstCall/ -- Parkway Bank (OTC
Bulletin Board: PKWY), a North Carolina state chartered bank
headquartered in Lenoir, North Carolina, announced its unaudited
third quarter 2009 financial results today. Net income (loss) for
the third quarter of 2009 was ($1,054,000) compared to ($512,000)
for the third quarter of 2008. Basic and diluted income (loss) per
share were ($.75) in the 2009 period, compared to ($.36) for basic
and diluted income per share in the 2008 period. For the first nine
months of 2009, net income (loss) was ($2,395,000) compared to
($598,000) in the first nine months of 2008. Basic and diluted
income (loss) per share were ($1.71) and ($.42) in the respective
periods. Total assets at September 30, 2009 were $123.1 million,
compared to $125.1 million at September 30, 2008, a decrease of
$2.0 million or 1.6%. Total deposits declined to $109.3 million at
September 30, 2009 from $110.3 million at September 30, 2008, a
decrease of $1.0 million or .9%. During the same period, total
loans decreased to $90.5 million from $92.3 million, a decrease
$1.8 million or 2.0%. "The unprecedented national and local
economic and financial conditions unlike any since the Great
Depression of the 1930's are continuing, although we are seeing the
beginnings of some positive signs" said James E. Sponenberg, III,
President and CEO of Parkway Bank. "Coupled with asset quality
issues and prior interest rate cuts by the Federal Reserve, which
has served to compress our net interest margin, and significantly
increased deposit insurance premiums and accounting and auditing
expenses, our Bank continues to experience an operating loss. We do
continue to be "Well Capitalized" by all regulatory measures."
Sponenberg further commented that "2009 continues to be a challenge
for all of us and 2010 will be as well. We continue to try to meet
this challenge on a daily basis." 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 ------------------ ----------------- 2009 2008 2009
2008 ---- ---- ---- ---- Income statement data: Net interest income
$773 811 2,195 2,509 Provision for loan losses 684 1,088 1,966
1,694 Net interest income after provision 89 (277) 229 815 Non
interest income 231 212 679 763 Non interest expense 1,078 910
3,303 2,802 Income (loss) before income taxes (758) (975) (2,395)
(1,224) Income taxes (benefit) 296 (463) - (626) Net income (loss)
(1,054) (512) (2,395) (598) Per share data and shares outstanding:
Basic income (loss) per share ($.75) (.36) (1.71) (.42) Diluted
income (loss) per share (.75) (.36) (1.71) (.42) Book value at
period end 7.30 9.60 7.30 9.60 Weighted average common shares
outstanding: Basic 1,397 1,410 1,397 1,411 Diluted 1,397 1,410
1,397 1,411 Shares outstanding at period end 1,397 1,402 1,397
1,402 Balance sheet data: Total assets $123,143 125,133 - - Loans
90,496 92,313 - - Allowance for loan losses 2,807 2,154 - - Total
deposits 109,297 110,300 - - Other borrowed funds 3,000 953 - -
Shareholders' equity 10,202 13,465 - - Selected performance ratios:
Return on average assets (%) (3.38) (1.71) (2.54) (.70) Return on
average shareholders' equity (%) (37.83) (14.78) (27.18) (5.59) Net
interest margin (%) (1) 2.85 2.92 2.69 3.20 Net interest spread (%)
(2) 2.78 2.50 2.60 2.74 Efficiency ratio (%) (3) 107.42 88.95
114.93 85.63 (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. DATASOURCE: Parkway Bank CONTACT: James E. Sponenberg, III,
President and Chief Executive Officer of Parkway Bank,
+1-828-758-1414, Web Site: http://www.parkwaybanknc.com/
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