LENOIR, N.C., April 16 /PRNewswire-FirstCall/ -- Parkway Bank (OTC Bulletin Board: PKWY), a North Carolina state chartered bank headquartered in Lenoir, North Carolina, announced its fourth quarter and full year 2009 financial results today.
Net income (loss) for the fourth quarter of 2009 was ($1,899,000) compared to ($1,283,000) for the fourth quarter of 2008. Basic and diluted income (loss) per share were ($1.36) in the 2009 period, compared to ($.92) for basic and diluted income per share in the 2008 period. For the full year of 2009, net income (loss) was ($4,294,000) compared to ($1,882,000) in the full year of 2008. Basic and diluted income (loss) per share were ($3.07) and ($1.34) in the respective periods.
Due to the deterioration in capital, we are reducing our asset size. Total assets at December 31, 2009 were $116.8 million, compared to $125.3 million at December 31, 2008, a decrease of $8.5 million or 6.7%. Total deposits declined to $105.3 million at December 31, 2009 from $111.8 million at December 31, 2008, a decrease of $6.5 million or 5.8%. During the same period, total loans decreased to $88.7 million from $95.2 million, a decrease $6.5 million or 6.9%.
"We continue to be negatively impacted by the poor economic and financial conditions both on a national and local level. The positive signs that we are seeing in our business such as an improving net interest margin are being more than offset by the overwhelming burden of asset quality issues," said James E. Sponenberg, III, President and CEO of Parkway Bank. "The asset quality issues are primarily from over twenty-three million dollars in participation loans made from 2006 to 2007 with Silverton, a bank that failed in May of 2009. Over the last two years we have lost over five million dollars directly attributable to those loans. We have recognized the losses and are ready to move forward. We are looking at all possible strategic alternatives, including the raising of additional capital. We 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.
PARKWAY BANK Financial Highlights (In Thousands Except Share and Per Share Data) (Unaudited) As of or For The As of or For The Three Months Ended Year Ended December 31 December 31 ----------- ----------- 2009 2008 2009 2008 ---- ---- ---- ---- Income statement data: Net interest income $910 774 3,105 3,283 Provision for loan losses 1,409 1,849 3,375 3,544 ----- ----- ----- ----- Net interest income after provision (499) (1,075) (270) (261) Non interest income 242 123 921 886 Non interest expense 1,002 1,085 4,305 3,886 Income (loss) before income taxes (1,259) (2,037) (3,654) (3,261) Income taxes (benefit) 640 (754) 640 (1,379) --- --- Net income (loss) (1,899) (1,283) (4,294) (1,882) ====== ====== ====== ====== Per share data and shares outstanding: Basic income (loss) per share ($1.36) (.92) (3.07) (1.34) Diluted income (loss) per share (1.36) (.92) (3.07) (1.34) Book value at period end 5.85 8.92 5.85 8.92 Weighted average common shares outstanding: Basic 1,397 1,400 1,397 1,408 Diluted 1,397 1,400 1,397 1,408 Shares outstanding at period end 1,397 1,397 1,397 1,397 Balance sheet data: Total assets $116,841 125,281 - - Loans 88,690 95,237 - - Allowance for loan losses 3,315 3,142 - - Total deposits 105,276 111,812 - - Other borrowed funds 3,000 447 - - Shareholders' equity 8,176 12,466 - - Selected performance ratios: Return on average assets (%) (6.19) (4.04) (3.44) (1.60) Return on average shareholders' equity (%) (73.50) (37.79) (37.68) (13.36) Net interest margin (%) (1) 3.27 2.69 2.85 3.06 Net interest spread (%) (2) 3.15 2.38 2.77 2.65 Efficiency ratio (%) (3) 86.98 120.96 106.94 93.21 (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.
Parkway Bank
CONTACT: James E. Sponenberg, III, President and Chief Executive
Officer, Parkway Bank, +1-828-758-1414, jsponenberg@parkwaybanknc.com
Web Site: http://www.parkwaybanknc.com/
