LENOIR, N.C., May 17 /PRNewswire-FirstCall/ -- Parkway Bank
(OTC Bulletin Board: PKWY), a North Carolina
state chartered bank headquartered in Lenoir, North Carolina, announced its first
quarter 2010 financial results today.
Net income (loss) for the first quarter of 2010 was ($52,000) compared to ($389,000) for the first quarter of 2009.
Basic and diluted income (loss) per share were ($.04) in the 2010 period, compared to
($.28) for basic and diluted income
per share in the 2009 period.
Due to the continued deterioration in capital, we have been
reducing our asset size. Total assets at March 31, 2010 were $118.7
million, compared to $126.0
million at March 31, 2009 a
decrease of $7.3 million or 5.8%.
Total deposits declined to $107.1
million at March 31, 2010 from
$112.7 million at March 31, 2010 a decrease of $5.6 million or 5.0%. During the same
period, total loans decreased to $86.2
million from $93.3 million, a
decrease of $7.1 million or 7.6%.
"We continue to be negatively impacted by the poor economic and
financial conditions both on a national and local level.
However, our loss of $52,000 in
the first quarter of 2010 was our best quarterly performance since
2008. Our results were favorably impacted by an improving net
interest margin and the favorable disposal of certain foreclosed
real estate. We still have significant asset quality issues
that we deal with daily," said James E.
Sponenberg, III, President and CEO of Parkway Bank.
"We are looking at all possible strategic alternatives, including
the raising of additional capital and will begin a capital raising
effort within the next few weeks. With our continued
operating losses, we are "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.
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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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Three Months
Ended
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March
31
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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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$
875
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718
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Provision for loan losses
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204
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566
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Net interest income after
provision
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671
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152
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Non interest income
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433
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228
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Non interest expense
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1,156
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1,065
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Income (loss) before income
taxes
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(52)
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(685)
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Income taxes (benefit)
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-
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(296)
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Net income (loss)
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($
52)
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(389)
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Per share data and shares
outstanding:
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Basic income (loss) per
share
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($
.04)
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(.28)
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Diluted income (loss) per
share
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(.04)
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(.28)
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Book value at period end
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5.84
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8.67
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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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Diluted
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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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Balance sheet data:
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Total assets
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$118,697
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126,016
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Loans
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86,243
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93,352
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Allowance for loan losses
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2,791
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2,351
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Total deposits
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107,145
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112,733
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Other borrowed funds
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3,000
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541
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Shareholders' equity
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8,154
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12,115
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Selected performance
ratios:
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Return on average assets
(%)
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(.18)
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(1.25)
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Return on average shareholders' equity
(%)
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(2.48)
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(12.79)
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Net interest margin (%) (1)
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3.48
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2.61
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Net interest spread (%) (2)
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3.45
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2.45
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Efficiency ratio (%) (3)
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88.34
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112.64
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(1) Net interest margin is net
interest income (annualized) divided by average interest-earning
assets.
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(2) Net interest spread is the
difference between the average yield on interest-earning assets and
the average cost of interest-bearing liabilities.
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(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