I. PURPOSE  

Parkway Bank and Trust Co. holds your customer privacy in the highest regard. The private non-public information that you have given the bank is protected by state of the art security programs and procedures that are continuously monitored within the Bank. We understand that many of our current and past customers do not wish to have their private non-public information used for marketing purposes outside the Parkway Bank affiliate group.

This privacy statement applies to all current and former customers of Parkway Bank & Trust Co., unless other wise indicated and describes the privacy policies of Parkway Bank & Trust Co. and its affiliates.

We take great care to safeguard your customer information and to ensure its accuracy.

· We limit employee access to nonpublic personal information to those who need to know this information in order to serve customer relationships. Employees are educated about the importance of privacy in accordance with our Privacy Policy.

· We maintain physical, electronic and procedural safeguards that comply with all applicable regulatory standards to guard your nonpublic personal information.

· We strive to maintain complete, current and accurate information about you and your accounts. If you request a correction to our records, we will respond in a timely manner.

We collect customer information so we are able to offer you new products and enhance the service we currently provide to you.

We collect and maintain nonpublic personal information in order to:

· Service your accounts and process your requests efficiently and accurately.

· Identify you and protect your accounts from unauthorized access or identity theft.

· Inform you of financial services and choices that meet your needs now and in the future.

This information may be collected from a variety of sources, including:

· Information we receive from you on your applications or other loan account forms, such as your name, address, and financial information.

· Information we receive through your transactions or experiences with affiliates within the Parkway Bank affiliate group, such as your account balances.

· Information we receive from outside companies, such as a credit reporting agency or real estate appraiser.

We may share information with nonaffiliated third parties who are acting on our behalf.

We may disclose all the information we collect, as described above. Information is shared with nonaffiliated third parties only when those parties are acting on our behalf, or as a required or permitted by law. These third parties may include:

· Service providers who provide support services to help us administer your financial relationships. They may include check printers, data processing companies, companies that prepare account statements, or companies that help us market our products to you. These companies are legally obligated to maintain the strict confidentiality of the information we provide to them, and are restricted from using this information for any other reason beyond the performance of specified services on our behalf.

· Companies who work with us under joint marketing agreements to provide you with financial services that we do not offer ourselves but we believe may be of interest to you. In such cases, we may share information we collect, as described above, but only as necessary to offer these services to you. These companies are legally obligated to maintain the confidentiality of the information we provide to them, and are restricted from using this information for any reason other than what is specified in the agreement.

· Other parties as permitted or required by applicable law. These may include, for example, government agencies in response to subpoenas and other legal processes, consumer reporting agencies, or those with whom you have authorized us to share information.

We may share information with affiliates of Parkway Bank and Trust Company

The Parkway Bank and Trust Company is affiliated with Parkway Bancorp, Inc., Parkway Bank and Trust Company, Parkway Bank Arizona and Parkway Mortgage & Financial Center. In order to evaluate your needs and to introduce you to additional financial services, we are permitted to share among these affiliated companies information about your transactions, account history or other experiences with us.

II. Personal Identifying Information

Visitors to Parkway Bank Web site will remain anonymous. We do not collect personal identifying information about visitors to our site. Our servers collect standard nonidentifying information about visits to this site, such as date and time visited, IP address, city, state and country. This information is used to compile standard statistics on site usage. If you have provided personal identifying information via e-mail (e.g., name and address), the information will only be used to communicate with you to handle your request. It is not sold or transferred to other parties. Parkway is committed to protecting your privacy.

III. Questions

Any questions regarding Parkway's Privacy Statement can be directed to the Compliance Department at 708-867-6600.