Parkway Bank Reports First Quarter 2012 Financial Results

LENOIR, N.C., May 15, 2012 /PRNewswire/ -- Parkway Bank (OTCBB: PKWY), a North Carolina state chartered bank headquartered in Lenoir, North Carolina, announced its first quarter 2012 financial results today.

Net income (loss) for the first quarter of 2012 was $128,000 compared to ($297,000) for the first quarter of 2011.  Basic and diluted income (loss) per share were $.09 in the 2012 period, compared to ($.21) for basic and diluted income per share in the 2011 period.

Due to the continued deterioration in capital, we have been reducing our asset size.  Total assets at March 31, 2012 were $113.0 million, compared to $115.3 million at March 31, 2011 a decrease of $2.3 million or 2.0%.  Total deposits declined to $106.6 million at March 31, 2012 from $107.0 million at March 31, 2011 a decrease of $.4 million or .3%.  During the same period, total loans decreased to $75.2 million from $85.9 million, a decrease of $10.7 million or 12.5%.

"Parkway Bank is a local community bank and reflects the community's economy.  We are pleased to report a profit for the first quarter of 2012 primarily due to the repositioning of our investment securities portfolio.  We continue to move forward to meet the challenges of a poor economic environment by improving our processes and equipping our staff with the tools and training to make us as efficient and responsive as we can be," said James E. Sponenberg, III, President and CEO of Parkway Bank.  "From a quality and performance standpoint, we have reduced troubled loans, improved our net interest margin and remained liquid.  Our need for capital is being addressed by our retaining McKinnon and Company to explore the best option available to us for raising capital.  We anticipate announcing a capital raising plan in the near future."

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. 

  

PARKWAY BANK
Financial Highlights
(In Thousands Except Per Share Data)
(Unaudited)
										As of or For The
										Three  Months Ended
											March 31
										2012		2011
Income statement data:
	Net interest income									$  827		$  830
	Provision for loan losses									132		137
	Net interest income after provision									695		693
	Non interest income									708		230
	Non interest expense									1,275		1,220
	Income (loss) before income taxes									128		(297)
	Income taxes (benefit)									-		-
	Net income (loss)									$   128		($   297)
Per share data and shares outstanding:
	Basic income (loss) per share									$.09		($  .21)
	Diluted income (loss) per share									.09		(.21)
	Book value per share at period end									2.26		3.59
	Weighted average common shares outstanding (000's):
	Basic									1,397		1,397
	Diluted									1,397		1,397
	Shares outstanding at period end									1,397		1,397
Balance sheet data:
	Total assets									$112,979		$115,278
	Loans									75,245		85,887
	Allowance for loan losses									2,109		4,186
	Total deposits									106,628		106,997
	Other borrowed funds									3,000		3,000
	Shareholders' equity									3,154		5,010
Selected performance ratios:
	Return on average assets (%)									.46		(1.02)
	Return on average shareholders' equity (%)									16.38		(21.09)
	Net interest margin (%) (1)									3.45		3.23
	Net interest spread (%) (2)									3.44		3.21
	Efficiency ratio (%) (3)									83.07		115.11
(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.

  

 

SOURCE Parkway Bank

Copyright 2012 PR Newswire