LENOIR, N.C., Nov. 16, 2010 /PRNewswire-FirstCall/ -- Parkway
Bank (OTC Bulletin Board: PKWY), a North
Carolina state chartered bank headquartered in Lenoir, North Carolina, announced its third
quarter 2010 financial results today.
Net income (loss) for the third quarter of 2010 was ($295,000) compared to ($1,055,000) for the third quarter of 2009.
Basic and diluted income (loss) per share were ($.21) in the 2010 period compared to
($.75) for basic and diluted income
(loss) per share in the 2009 period. For the nine months
ended September 30, 2010, net income
(loss) was ($1,603,000) compared to
($2,395,000) for the nine months
ended September 30, 2009. Basic
and diluted income (loss) per share were ($1.15) in the 2010 period compared to
($1.71) in the 2009 period.
Due to the continued deterioration in our capital, we continue
to limit our asset growth. Total assets at September 30, 2010 were $115.8 million, compared to $123.1 million at September 30, 2009 a decrease of $7.3 million or 5.9%. Total deposits
declined to $105.6 million at
September 30, 2010 from $109.3 million at September 30, 2009 a decrease of $3.7 million or 3.4%. During the same
period, total loans decreased to $83.1
million from $90.5 million, a
decrease of $7.4 million or 8.2%.
"As a community bank our performance should be reflective of our
community's economy and it does. We are negatively impacted
by poor economic and financial conditions both on a national and
local level. Asset quality issues continue to be dealt with
daily, and in particular our participation loan and foreclosed real
estate portfolios," said James E.
Sponenberg, III, President and CEO of Parkway Bank.
"The issues raised in the Consent Order with the FDIC and NC
State Banking Commission are being addressed and many have been
completed. One of the primary issues involves the raising of
additional capital and we are well into an effort of doing so
through a private placement offering. We continue to be "Adequately
Capitalized" by all regulatory measures, but are striving to regain
"Well Capitalized" status".
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.
Additionally, the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 ("the Act") was signed into law on
July 21, 2010. The Act is a
significant piece of legislation that will have major effects on
the financial services industry, including the organization,
financial condition and operations of banks and bank holding
companies. Management is currently evaluating the impact of the
Act; however, uncertainty remains as to its operational impact,
which could have a material adverse impact on the Bank's business,
results of operations and financial condition. Many of the
provisions of the Act are aimed at financial institutions that are
significantly larger than the Bank. Notwithstanding this, there are
many other provisions that the Bank is subject to and will have to
comply with, including any new rules applicable to the Bank
promulgated by the Bureau of Consumer Financial Protection, a new
regulatory body dedicated to consumer protection. As rules and
regulations are promulgated by the agencies responsible for
implementing and enforcing the Act, the Bank will have to address
each to ensure compliance with applicable provisions of the Act and
compliance costs are expected to increase.
PARKWAY
BANK
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Financial
Highlights
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(In
Thousands Except Share and Per Share Data)
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(Unaudited)
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As of or For
The
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As of or For
The
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Three Months
Ended
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Nine Months
Ended
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September
30
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September
30
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2010
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2009
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2010
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2009
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Income statement
data:
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Net interest income
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$ 808
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773
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$ 2,490
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2,195
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Provision for loan
losses
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156
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684
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1,275
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1,966
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Net interest income (loss) after
provision
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652
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89
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1,215
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229
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Non interest income
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256
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231
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1,003
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679
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Non interest expense
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1,203
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1,078
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3,821
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3,303
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Income (loss) before income
taxes
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(295)
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(758)
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(1,603)
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(2,395)
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Income taxes
(benefit)
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-
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297
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-
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-
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Net income (loss)
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($ 295)
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(1,055)
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($ 1,603)
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($ 2,395)
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Per share data and shares
outstanding:
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Basic income (loss) per
share
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($
.21)
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(.75)
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(1.15)
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(1.71)
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Diluted income (loss) per
share
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(.21)
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(.75)
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(1.15)
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(1.71)
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Book value at period
end
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4.86
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7.30
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4.86
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7.30
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Weighted average common shares
outstanding:
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Basic
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1,397
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1,397
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1,397
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1,397
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Diluted
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1,397
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1,397
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1,397
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1,397
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Shares outstanding at period
end
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1,397
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1,397
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1,397
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1,397
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Balance sheet
data:
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Total assets
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$115,845
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123,143
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-
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-
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Loans
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83,057
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90,496
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-
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-
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Allowance for loan
losses
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3,152
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2,807
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-
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-
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Total deposits
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105,617
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109,297
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-
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-
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Other borrowed funds
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3,000
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3,000
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-
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-
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Shareholders' equity
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6,790
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10,202
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-
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-
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Selected performance
ratios:
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Return on average assets
(%)
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(.99)
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(3.38)
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(1.82)
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(2.54)
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Return on average shareholders'
equity (%)
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(16.95)
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(37.83)
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(27.20)
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(27.18)
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Net interest margin (%)
(1)
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3.18
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2.85
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3.25
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2.69
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Net interest spread (%)
(2)
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3.16
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2.78
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3.24
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2.60
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Efficiency ratio (%)
(3)
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113.04
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107.42
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109.39
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114.93
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(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.
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SOURCE Parkway Bank