Parkway Bank Announces 2006 Year End Results

LENOIR, N.C., Feb. 12  /PRNewswire-FirstCall/ -- Parkway Bank (OTC:PKWY) (BULLETIN BOARD: PKWY)  announced today that its net income for the year ended December 31, 2006, was $1,013,146, compared to net income of $1,033,476 for the year ended December 31, 2005. Net income for the fourth quarter of 2006 was $259,823, compared to net income of $225,108 in the fourth quarter of 2005.

Total assets were $102.9 million at December 31, 2006, compared to $90 million at December 31, 2005, an increase of $12.9 million or 14.36%. Deposits and loans increased to $87.7 million and $67.1 million, from $75.9 million and $61 million in 2005, respectively.  At December 31, 2006, shareholders' equity was $13.5 million and the book value per share of the Bank's common stock was $9.64.

Parkway Bank President and CEO, Gary Clawson, in commenting on the results, noted, "fiscal year 2006 was a fully taxable year and when comparing pre-tax income performance against fiscal year 2005, total income was up nearly 23%.  Our total non interest income as a percentage of average assets continues to be one of the highest of all community banks in North Carolina; key sources of this revenue are derived from our insurance subsidiary and mortgage operations.  Our overall balance sheet growth and diversification remains on track with our short and long term strategies, our capital position remains very strong, and we continue to be pleased with our asset quality numbers.  As to the future, controlled expansion, further diversification of revenue streams and constant awareness of non interest expenses and interest margins are at the forefront of our strategy.  The primary component in our past success and in our future is the people who are here at Parkway.  All employees are dedicated to the organization and in turn the organization to the employees.  It has to work that way."

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. 

DATASOURCE: Parkway Bank



CONTACT:  Gary T. Clawson, President and CEO of Parkway Bank,

[phone]



Web site:  http://www.parkwaybanknc.com/

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