Parkway Bank Announces Third Quarter Earnings LENOIR, N.C., Nov. 12
/PRNewswire-FirstCall/ -- Parkway Bank (OTC:PKWY) (BULLETIN BOARD:
PKWY) today reported record earnings for the three-month period
ending September 30, 2004. Net income for the third quarter of 2004
was $102,533, an increase of 22.44% over net income of $83,740 for
the third quarter of 2003. Net income for the first nine months of
2004 was $132,845, up 28.51% over net income of $103,376 for the
first nine months of 2003. Parkway's total assets grew by 26.19%,
from $56.9 million at December 31, 2003 to $71.8 million at
September 30, 2004. Net loans outstanding rose 17.83% during the
same period from $41.8 million to $49.2 million, while deposits
totaled $59.2 million at September 30, 2004, which represents an
18.12% increase over deposits of $50.1 million at December 31,
2003. At September 30, 2004, shareholders' equity was $11.2 million
and the bank's book value per share was $9.75. Parkway Bank
President and CEO Gary Clawson, in commenting on the results,
noted, "The quarter ending September 30, 2004 marks our sixth
consecutive quarter of profitability, and we are pleased to report
these record earnings results to our shareholders. Our goals for
the remainder of 2004 will be continued core deposit growth and
increased total revenue." 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/ . 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. PARKWAY BANK AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET September 30, December 31, 2004 2003*
(Unaudited) =============== =============== ASSETS Cash and due
from banks $1,114,641 $509,920 Federal funds sold 5,359,000
5,150,000 Investment securities available for sale, at fair value
12,097,752 6,046,517 Loans 49,973,192 42,473,796 Allowance for loan
losses (743,619) (693,050) --------------- --------------- NET
LOANS 49,229,573 41,780,746 Accrued interest receivable 260,421
223,345 Bank premises and equipment 2,974,927 2,912,086 Stock in
Federal Home Loan Bank of Atlanta, at cost 165,200 122,200 Other
assets 601,643 154,660 --------------- --------------- TOTAL ASSETS
$71,803,157 $56,899,474 =============== =============== LIABILITIES
AND STOCKHOLDERS' EQUITY Deposits Non-interest-bearing $5,218,050
$3,701,270 Savings 995,607 431,682 Money market and NOW 13,846,555
12,087,158 Time 39,114,926 33,878,076 ---------------
--------------- TOTAL DEPOSITS 59,175,138 50,098,186 Repurchase
agreements 1,127,970 995,134 Accrued expenses and other Liabilities
259,824 182,613 --------------- --------------- TOTAL LIABILITIES
60,562,932 51,275,933 Stockholders' equity Common stock, $5 par
value, 20,000,000 shares authorized; 1,152,720 and 602,763 shares
issued and outstanding, respectively 5,763,600 3,013,815 Additional
paid-in capital 5,917,815 3,153,827 Accumulated deficit (431,291)
(564,136) Accumulated other comprehensive (loss) income (9,899)
20,035 -------------- -------------- TOTAL STOCKHOLDERS' EQUITY
11,240,225 5,623,541 -------------- -------------- TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY $71,803,157 $56,899,474
=============== =============== PARKWAY BANK AND SUBSIDIARY
CONSOLIDATED STATEMENT OF OPERATIONS For The For The For The For
The Three Months Three Months Nine Months Nine Months Sept. 30,
Sept. 30, Sept. 30, Sept. 30, 2004 2003 2004 2003 (Unaudited)
(Unaudited) (Unaudited) (Unaudited) ============ ===========
============ =========== INTEREST INCOME Loans $750,815 $588,670
$2,063,811 $1,628,866 Investments 76,667 37,663 191,106 105,771
Federal funds sold and deposits in other banks 27,862 12,416 57,370
38,162 ------------ ----------- ------------ ----------- TOTAL
INTEREST INCOME 855,344 638,749 2,312,287 1,772,799 ------------
----------- ------------ ----------- INTEREST EXPENSE Money market,
Now and savings deposits 36,911 37,343 109,135 107,400 Time
deposits 286,549 224,293 837,300 627,294 Securities sold under
repurchase agreements 2,655 2,554 7,862 8,798 ------------
----------- ------------ ----------- TOTAL INTEREST EXPENSE 326,115
264,190 954,297 743,492 ------------ ----------- ------------
----------- NET INTEREST INCOME 529,229 374,559 1,357,990 1,029,307
PROVISION FOR LOAN LOSSES 39,500 36,000 72,250 162,600 ------------
----------- ------------ ----------- NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 489,729 338,559 1,285,740 866,707
------------ ----------- ------------ ----------- NON INTEREST
INCOME Insurance commissions 103,158 106,434 342,275 336,721
Mortgage operations 34,245 101,046 131,192 258,384 Other fees and
charges 95,329 27,693 223,109 76,431 Gains on securities sold - - -
- ------------ ----------- ------------ ----------- TOTAL NON
INTEREST INCOME 232,732 235,173 696,576 671,536 ------------
----------- ------------ ----------- NON INTEREST EXPENSE Salaries
and employee benefits 347,601 304,595 1,040,294 900,480 Occupancy
and equipment 84,891 55,293 230,561 159,270 Advertising and
promotion 11,905 13,498 60,812 32,955 Data processing and outside
service fees 103,506 56,173 285,266 169,138 Professional fees 6,659
5,896 41,087 24,445 Supplies, telephone, and postage 31,788 20,166
97,587 61,318 Other 33,578 34,371 93,864 87,261 ------------
----------- ------------ ----------- TOTAL NON INTEREST EXPENSE
619,928 489,992 1,849,471 1,434,867 ------------ -----------
------------ ----------- PROFIT (LOSS) BEFORE INCOME TAXES 102,533
83,740 132,845 103,376 INCOME TAXES - - - - ------------
----------- ------------ ----------- NET INCOME (LOSS) $102,533
$83,740 $132,845 $103,376 ============ =========== ============
=========== NET INCOME (LOSS) PER COMMON SHARE BASIC $0.10 $0.13
$0.17 $0.16 DILUTED $0.10 $0.12 $0.17 $0.15 WEIGHTED AVERAGE COMMON
SHARES BASIC 993,033 663,012 773,822 663,012 DILUTED 1,009,897
686,812 790,686 686,812 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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