Parkway Bank Announces Adjusted 2007 Year End Results

LENOIR, N.C., April 8, 2008  /PRNewswire-FirstCall/ -- Parkway Bank (OTC:PKWY) (BULLETIN BOARD: PKWY) .

On March 18, 2008, the Bank reached a tentative settlement agreement on a litigation matter.  Management determined that this tentative settlement was a subsequent event and elected to book the anticipated expenses associated with the settlement during the fiscal year ended December 31, 2007.  As a result, the results of operations changed as follows:

      Net income for the year ended December 31, 2007 was adjusted to
      $701,658 or $.50 per diluted share, compared to $816,258 or $.57 per
      diluted share prior to the adjustment for the subsequent event. The
      net income for the year ended December 31, 2006 was $1,013,146 or $.70
      per diluted share.

      Total assets were $109.9 million at December 31, 2007, compared to
      $102.9 million at December 31, 2006, an increase of $7 million or
      6.8%. Deposits and loans increased to $94.0 million and $81.6 million,
      from $87.7 million and $67.1 million in 2006, respectively.  The
      adjustment for the subsequent event did not have an effect on our
      total assets, loans or deposits. At December 31, 2007, shareholders'
      equity was $14.4 million and the book value per share was $10.18.



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:  Robert Kirkman of Parkway Bank, [phone]



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

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