PKBK

WASHINGTON TOWNSHIP, NJ, July 22, 2026 /PRNewswire/ -- Parke Bancorp, Inc. ("Parke Bancorp" or the "Company") (NASDAQ: "PKBK"), the parent company of Parke Bank, announced its operating results for the three and six months ended June 30, 2026. Highlights for the three and six months ended June 30, 2026: Net income available to common shareholders was $12.2 million, or $1.04 per basic common share and $1.03 per diluted common share, for the three months ended June 30, 2026, an increase of $4.0 million, or 47.8%, compared to net income available to common shareholders of $8.3 million, or $0.70 per basic common share and $0.69 per diluted common share, for the three months ended June 30, 2025. The increase was primarily due to a $5.1 million increase in net interest income, and a $0.3 million decrease in provision for credit losses, partially offset by a $0.2 million increase in non-interest expense. Net interest income increased $5.1 million, or 28.8%, to $23.0 million for the three months ended June 30, 2026, compared to $17.9 million for the same period in 2025. The Company recorded a provision for credit losses of $0.7 million for the three months ended June 30, 2026, compared to a provision for credit losses of $1.0 million for the same period in 2025. Non-interest income increased by $0.1 million, or 7.5%, to $0.88 million for the three months ended June 30, 2026, compared to $0.82 million for the same period in 2025. Non-interest expense increased $0.2 million, or 3.6%, to $6.9 million for the three months ended June 30, 2026, compared to $6.7 million for the same period in 2025. Net income available to common shareholders was $24.1 million, or $2.05 per basic common share and $2.02 per diluted common share, for the six months ended June 30, 2026, an increase of $8.0 million, or 50.0%, compared to net income available to common shareholders of $16.1 million, or $1.36 per basic common share and $1.34 per diluted common share, for the same period in 2025. The increase is primarily due to an increase in net interest income of $10.7 million, and a $0.7 million decrease in provision for credit losses, partially offset by a $0.9 million increase in non-interest expense. Net-interest income increased $10.7 million, or 30.9%, to $45.1 million for the six months ended June 30, 2026, compared to $34.5 million for the same period in 2025. The Company recorded a provision for credit losses of $0.9 million for the six months ended June 30, 2026, compared to a provision for credit losses of $1.6 million for the same period in 2025. Non-interest income increased $0.1 million, or 5.7%, to $1.7 million for the six months ended June 30, 2026, compared to $1.6 million for the same period in 2025. Non-interest expense increased $0.9 million, or 6.9%, to $14.1 million for the six months ended June 30, 2026, compared to $13.2 million for the same period in 2025. The following is a recap of the significant items that impacted results of operations for the three and six months ended June 30, 2026: Interest income increased $3.4 million during the three months ended June 30, 2026 compared to the same period in 2025, primarily due to an increase in interest and fees on loans of $4.2 million, or 12.8%, to $37.0 million, resulting from higher market interest rates and higher average loan portfolio balances. Interest earned on deposits held at the Federal Reserve Bank ("FRB") decreased $0.8 million, or 38.3%, during the three months ended June 30, 2026, due to lower average balances on deposit and a decrease in the interest rate on those deposits. For the six months ended June 30, 2026, interest income increased $6.5 million from the same period in 2025, primarily due to an increase in interest and fees on loans of $8.6 million, or 13.4%, to $72.8 million, primarily due to an increase in average outstanding loan balances, and higher market interest rates. Interest earned on deposits held at the FRB decreased $2.0 million during the six months ended June 30, 2026, due to lower average balances on deposit and a decrease in the interest rate on those deposits. Interest expense decreased $1.7 million, or 10.0%, to $15.4 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to a decrease in interest expense on deposits, due to a decrease in market interest rates, as well as a decrease in interest expense on borrowings. For the six months ended June 30, 2026, interest expense decreased $4.1 million, or 12.1%, to $30.2 million, primarily due to lower market interest rates, combined with changes in the mix of deposits and borrowings. The Company booked a provision for credit losses of $0.7 million for the three months ended June 30, 2026, compared to a provision for credit losses of $1.0 million for the same period in 2025. The decrease in the provision for credit losses for the three months ended June 30, 2026, was due to a decrease in loan balance during the three months ended June 30, 2026, as compared to an increase in loan balance during the same period in 2025, partially offset by an increase in charge-offs. The provision for credit losses for the six months ended June 30, 2026 decreased $0.7 million, or 44.2%, to $0.9 million, compared to a provision for credit losses of $1.6 million for the same period in 2025. The decrease in the provision for credit losses was primarily due to a decrease in loan balance from December 31, 2025, partially offset by an increase in charge-offs during the six months ended June 30, 2026. Non-interest income increased $61.0 thousand, or 7.5%, for the three months ended June 30, 2026, compared to the same period in 2025, primarily as a result of an increase in bank owned life insurance ("BOLI") income. For the six months ended June 30, 2026, non-interest income increased $94.0 thousand, primarily driven by a $136.0 thousand increased in BOLI, partially offset by a $54.0 thousand decreased in service fees on deposit accounts. Non-interest expense increased $0.2 million, or 3.6%, to $6.9 million for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily driven by an increase in compensation and benefits of $0.3 million, and an increase in other operating expense of $0.1 million, partially offset by a decrease in data processing expense of $0.2 million, compared to the same period in 2025. For the six months ended June 30, 2026, non-interest expense increased $0.9 million, or 6.9%, to $14.1 million, compared to the same period in 2025. The increase in non-interest expense was primarily due to an increase in compensation and benefits of $0.7 million, and an increase in other operating expense of $0.5 million, partially offset by a decrease in data processing expense of $0.3 million, compared to the six months ended June 30, 2025. Income tax expense increased $1.3 million for the three months ended June 30, 2026, compared to the same period in 2025. For the six months ended June 30, 2026, income tax expense increased $2.5 million, compared to the same period in 2025. The effective tax rate for the three and six months ended June 30, 2026 was 24.9% and 24.4%, respectively, compared to 23.9% and 24.7% for the same period in 2025. June 30, 2026 discussion of financial condition Total assets increased to $2.30 billion at June 30, 2026, from $2.25 billion at December 31, 2025, an increase of $53.6 million, or 2.4%, primarily due to an increase in cash and cash equivalents, and an increase in other real estate owned, partially offset by a decrease in net loans. Cash and cash equivalents totaled $204.7 million at June 30, 2026, as compared to $156.9 million at December 31, 2025. The increase in cash and cash equivalents was primarily due to the timing of loan payoffs, which will be redeployed into future loans/investments. The investment securities portfolio increased to $14.3 million at June 30, 2026, from $13.5 million at December 31, 2025, an increase of $0.8 million, or 5.7%, primarily due to the purchase of a $1.5 million security classified as held to maturity, offset by pay downs of securities. Gross loans decreased $3.9 million or 0.2%, to $2.03 billion at June 30, 2026, compared to gross loans of $2.04 billion at December 31, 2025. Nonperforming loans at June 30, 2026 decreased to $5.4 million, or 0.27% of total loans, a decrease of $5.4 million, or 49.8%, from $10.8 million of nonperforming loans at December 31, 2025. OREO at June 30, 2026 was $6.8 million, an increase of $3.9 million from December 31, 2025. Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.53% and 0.61% of total assets at June 30, 2026 and December 31, 2025, respectively. Loans past due 30 to 89 days were $2.1 million at June 30, 2026, a decrease of $1.4 million from December 31, 2025. The allowance for credit losses was $34.6 million at June 30, 2026, as compared to $34.6 million at December 31, 2025. The ratio of the allowance for credit losses to total loans was 1.70% at June 30, 2026, and 1.70% at December 31, 2025. The ratio of allowance for credit losses to non-performing loans was 639.4% at June 30, 2026, compared to 321.0%, at December 31, 2025. Total deposits were $1.76 billion at June 30, 2026, an increase of $0.9 million or 0.1%, compared to December 31, 2025. The increase in deposits was primarily driven by an increase in interest-bearing deposits of $4.3 million, partially offset by a decrease in non-interest-bearing deposits of $3.3 million. Total borrowings increased $34.0 million during the six months ended June 30, 2026, to $177.4 million at June 30, 2026, from $143.4 million at December 31, 2025, due to a $34.0 million increase in outstanding FHLBNY borrowings. Total equity increased to $346.9 million at June 30, 2026, up from $324.5 million at December 31, 2025, an increase of $21.6 million, or 6.6%, primarily due to the retention of earnings, partially offset by the payment of $4.5 million of cash dividends. CEO outlook and commentary Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, provided the following statement: "Economic volatility continued during the first half of 2026 as geopolitical tensions, persistent inflation concerns, and uncertainty surrounding future monetary policy weighed on financial markets and the broader economy. Developments in the Middle East, including continued tensions affecting the Strait of Hormuz, as well as the ongoing conflict between Russia and Ukraine, have contributed to uncertainty regarding global economic growth, inflation, and interest rate expectations. While increased oil production has helped moderate energy prices, inflation remains a primary concern of the Federal Reserve. As a result, the outlook for interest rates remains uncertain, making economic forecasting particularly challenging. Despite these economic headwinds, Parke Bank delivered strong financial results during the first six months of 2026. Net income increased to $24.1 million for the six months ended June 30, 2026, representing a 50% increase compared to $16.1 million for the same period in 2025. The increase in earnings was driven by the continued strength of our loan portfolio, higher asset yields, and lower funding costs. Net interest margin improved to 4.17% compared to 3.32% for the first six months of 2025, reflecting the Bank's ability to effectively manage its balance sheet in a changing interest rate environment. Profitability metrics also improved significantly. Return on average assets increased to 2.18% from 1.52%, while return on average common equity rose to 14.40% from 10.53% during the same period in 2025. Disciplined expense management continued to contribute to our strong performance. The Bank's efficiency ratio improved to 30.16% compared to 36.60% for the first six months of 2025, demonstrating our ongoing focus on operational efficiency while maintaining a high level of service to our customers." Forward Looking Statement Disclaimer This release may contain forward-looking statements which are made in good faith pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements, such as statements of the Company's plans, objectives, expectations, estimates and intentions, involve risks and uncertainties and are subject to change based on various important factors (some of which are beyond the Company's control) which may cause actual results to differ materially from those currently anticipated.  Such factors include: our ability to maintain a strong capital base, strong earning and strict cost controls; our ability to generate strong revenues with increased interest income and net interest income; our ability to continue the growth and maintain the quality of our loan portfolio; our ability to continue to increase shareholders' equity, maintain strong loan underwriting and allowance for credit losses; our ability to react quickly to any increase in loan delinquencies; our ability to face current challenges in the market; our ability to be well positioned navigate the challenging economic volatility; our ability to continue to reduce our nonperforming loans and delinquencies and the expenses associated with them; our ability to increase the rate of growth of our loan portfolio; our ability to continue to improve net interest margin; our ability to enhance shareholder value in the future; our ability to continue growing our Company, our earnings and shareholders' equity; and the possibility of additional corrective actions or limitations on the operations of the Company. and Parke Bank being imposed by banking regulators. Readers should not place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims, any obligations to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such circumstance. (PKBK-ER) View original content:https://www.prnewswire.com/news-releases/parke-bancorp-inc-announces-second-quarter-2026-earnings-302830910.html

WASHINGTON TOWNSHIP, N.J., April 17, 2026 /PRNewswire/ -- Parke Bancorp, Inc. ("Parke Bancorp" or the "Company") (NASDAQ: "PKBK"), the parent company of Parke Bank, announced its operating results for the three months ended March 31, 2026. Highlights for the three months ended March 31, 2026: Net income available to common shareholders was $11.8 million, or $1.01 per basic common share and $0.99 per diluted common share, for the three months ended March 31, 2026, an increase of $4.1 million, or 52.3%, compared to net income available to common shareholders of $7.8 million, or $0.66 per basic common share and $0.65 per diluted common share, for the three months ended March 31, 2025. The increase was primarily due to a $5.5 million increase in net interest income, and a $0.4 million decrease in provision for credit losses, partially offset by a $0.7 million increase in non-interest expense. Net interest income increased $5.5 million, or 33.3%, to $22.1 million for the three months ended March 31, 2026, compared to $16.6 million for the same period in 2025. The Company recorded a provision for credit losses of $0.2 million for the three months ended March 31, 2026, compared to a provision for credit losses of $0.6 million for the same period in 2025. Non-interest income increased slightly by $0.03 million, or 3.9%, to $0.85 million for the three months ended March 31, 2026, compared to $0.82 million for the same period in 2025. Non-interest expense increased $0.7 million, or 10.4%, to $7.2 million for the three months ended March 31, 2026, compared to $6.5 million for the same period in 2025. The following is a recap of the significant items that impacted results of operations for the three months ended March 31, 2026: Interest income increased $3.1 million during the three months ended March 31, 2026 compared to the same period in 2025, primarily due to an increase in interest and fees on loans of $4.4 million, or 14.0%, to $35.9 million, resulting from higher market interest rates and higher average loan portfolio balances. Interest earned on average deposits held at the Federal Reserve Bank ("FRB") decreased $1.3 million, or 60.3%, during the three months ended March 31, 2026, due to lower average balances on deposit and a decrease in the interest rate on those deposits. Interest expense decreased $2.4 million, or 14.1%, to $14.8 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to a decrease in interest expense on deposits, due to a decrease in market interest rates, as well as a decrease in interest expense on borrowings. The Company booked a provision for credit losses of $0.2 million for the three months ended March 31, 2026, compared to a provision for credit losses of $0.6 million for the same period in 2025. The decrease in the provision for credit losses for the three months ended March 31, 2026, was due to lower growth in loans during the three months ended March 31, 2026, as compared to the same period in 2025. Non-interest income increased $32.0 thousand, or 3.9%, for the three months ended March 31, 2026, compared to the same period in 2025, primarily as a result of an increase in bank owned life insurance ("BOLI") income. Non-interest expense increased $0.7 million, or 10.4%, to $7.2 million for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily driven by an increase in compensation and benefits of $0.4 million, and an increase in other operating expense of $0.4 million, partially offset by a decrease in professional services of $0.1 million, compared to the same period in 2025. Income tax expense increased $1.2 million for the three months ended March 31, 2026 compared to the same period in 2025. The effective tax rate for the three ended March 31, 2026 was 23.9%, compared to 24.5% for the same period in 2025. March 31, 2026 discussion of financial condition Total assets decreased to $2.21 billion at March 31, 2026, from $2.25 billion at December 31, 2025, a decrease of $36.5 million, or 1.6%, primarily due to a decrease in cash and cash equivalents, partially offset by an increase in net loans. Cash and cash equivalents totaled $110.9 million at March 31, 2026, as compared to $156.9 million at December 31, 2025. The decrease in cash and cash equivalents was primarily due to an increase in loan balances, and a decrease in primarily non-interest bearing and brokered deposit balances, partially offset by an increase in Federal Home Loan Bank of New York ("FHLBNY") borrowings. The investment securities portfolio decreased to $13.1 million at March 31, 2026, from $13.5 million at December 31, 2025, a decrease of $0.4 million, or 2.9%, primarily due to pay downs of securities. Gross loans increased $8.1 million or 0.4%, to $2.04 billion at March 31, 2026, compared to gross loans at December 31, 2025. Nonperforming loans at March 31, 2026 decreased to $9.2 million, or 0.45% of total loans, a decrease of $1.6 million, or 14.9%, from $10.8 million of nonperforming loans at December 31, 2025. OREO at March 31, 2026 was $2.9 million, unchanged from December 31, 2025. Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.54% and 0.61% of total assets at March 31, 2026 and December 31, 2025, respectively. Loans past due 30 to 89 days were $3.9 million at March 31, 2026, an increase of $0.4 million from December 31, 2025. The allowance for credit losses was $34.9 million at March 31, 2026, as compared to $34.6 million at December 31, 2025. The ratio of the allowance for credit losses to total loans was 1.71% at March 31, 2026, and 1.70% at December 31, 2025. The ratio of allowance for credit losses to non-performing loans was 380.4% at March 31, 2026, compared to 321.0%, at December 31, 2025. Total deposits were $1.70 billion at March 31, 2026, down from $1.76 billion at December 31, 2025, a decrease of $59.9 million or 3.4%, compared to December 31, 2025. The decrease in deposits was primarily driven by a decrease in non-interest bearing deposits of $32.4 million, time deposits of $24.0 million, brokered time deposits of $14.0 million, and interest-bearing deposits of $12.6 million, partially offset by an increase in money market deposits of $22.6 million. Total borrowings increased $10.0 million during the three months ended March 31, 2026, to $153.4 million at March 31, 2026, from $143.4 million at December 31, 2025, due to a $10.0 million increase in outstanding FHLBNY borrowings. Total equity increased to $335.6 million at March 31, 2026, up from $324.5 million at December 31, 2025, an increase of $11.0 million, or 3.4%, primarily due to the retention of earnings, partially offset by the payment of $2.1 million of cash dividends. CEO outlook and commentary Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, provided the following statement: "2026 has started off with many of the challenges in 2025 continuing, and in some instances worsening. The immigration crisis, no clear direction of interest rates, inflation remaining a serious concern, the Russia – Ukraine war continuing, and the Iran conflict that started in February, are all challenges making it difficult to identify the market's direction. The market seemed to be checking the boxes for a couple of rate cuts, however, Iran blocking the Strait of Hormuz, combined with the interruption of oil production has triggered sharp increases in oil and gas prices, reigniting inflation. It is important for banks, including Parke Bank, to remain nimble and responsive to address possible challenges and evolving opportunities." "Parke Bank had a pretty good first quarter in 2026. When comparing it to the first quarter of 2025, our Assets, Loans, Deposits and Shareholder Equity increased from the first quarter of 2025 to the first quarter of 2026. Net income for the first quarter of 2026 increased 52.3% to $11.8 million compared to the first quarter of 2025. This increase was partially due to the growth and yield of our loan portfolio, in addition to our tight control of expenses, with an Efficiency Ratio of 31.39% at March 31, 2026. Our Return on Assets improved to 2.19%, a 48.0% increase from the first quarter of 2025, and our Return on Equity improved to 14.47%, a 39.7% increase from the first quarter of 2025. The improvement of our Net Interest Margin to 4.17%, a 29.9% improvement, played an important part in these improved numbers." "Parke Bank is well positioned to navigate the many challenges affecting the economy and the market, with strong capital, earnings, liquidity and continued tight control of expenses." Forward Looking Statement Disclaimer This release may contain forward-looking statements. Such forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from those currently anticipated due to a number of factors; our ability to maintain a strong capital base, strong earning and strict cost controls; our ability to generate strong revenues with increased interest income and net interest income; our ability to continue the financial strength and growth of our loan portfolio; our ability to continue to increase shareholders' equity, maintain strong loan underwriting and allowance for credit losses; our ability to react quickly to any increase in loan delinquencies; our ability to face current challenges in the market; our ability to be well positioned navigate the challenging economic volatility; our ability to continue to reduce our nonperforming loans and delinquencies and the expenses associated with them; our ability to increase the rate of growth of our loan portfolio; our ability to continue to improve net interest margin; our ability to enhance shareholder value in the future; our ability to continue growing our Company, our earnings and shareholders' equity; the possibility of additional corrective actions or limitations on the operations of the Company. and Parke Bank being imposed by banking regulators, therefore, readers should not place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims, any obligations to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such circumstance. (PKBK-ER) View original content:https://www.prnewswire.com/news-releases/parke-bancorp-inc-announces-first-quarter-2026-earnings-302745179.html

WASHINGTON TOWNSHIP, N.J., Jan. 22, 2026 /PRNewswire/ -- Parke Bancorp, Inc. ("Parke Bancorp" or the "Company") (NASDAQ: "PKBK"), the parent company of Parke Bank (the "Bank"), announced its operating results for the quarter and fiscal year ended December 31, 2025. Highlights for the fourth quarter and year ended December 31, 2025: Net income available to common shareholders was $11.1 million, or $0.94 per basic common share and $0.93 per diluted common share, for the three months ended December 31, 2025, an increase of $3.7 million, or 49.9%, compared to net income available to common shareholders of $7.4 million, or $0.62 per basic common share and $0.61 per diluted common share, for the three months ended December 31, 2024. The increase is primarily driven by a $6.2 million increase in net interest income, partially offset by a $0.4 million increase in provision for credit losses, and a $0.7 million increase in non-interest expense. Net interest income increased 39.7% to $21.8 million for the three months ended December 31, 2025, compared to $15.6 million for the same period in 2024. The Company recorded a provision for credit losses of $0.5 million for the three months ended December 31, 2025, compared to a provision for credit losses of $0.2 million for the same period in 2024. Non-interest income decreased $0.2 million, or 19.2%, to $0.9 million for the three months ended December 31, 2025, compared to $1.1 million for the same period in 2024. Non-interest expense increased $0.7 million, or 10.8%, to $7.6 million for the three months ended December 31, 2025, compared to $6.9 million for the same period in 2024. Net income available to common shareholders was $37.8 million, or $3.20 per basic common share and $3.16 per diluted common share, for the fiscal year ended December 31, 2025, an increase of $10.3 million, or 37.3%, compared to net income available to common shareholders of $27.5 million, or $2.30 per basic common share and $2.27 per diluted common share, for the fiscal year ended December 31, 2024. The increase was primarily due to a $17.8 million increase in net interest income, partially offset by a $1.8 million increase in the provision for credit losses, a $0.9 million decrease in non-interest income, and a $2.0 million increase in non-interest expense. Net interest income increased 30.2% to $76.5 million for the fiscal year ended December 31, 2025, compared to $58.7 million for the fiscal year ended December 31, 2024. Provision for credit losses increased $1.8 million to $2.5 million for the fiscal year ended December 31, 2025, compared to a provision for credit losses of $0.7 million for the fiscal year ended December 31, 2024. Non-interest income decreased $0.9 million, or 20.8%, to $3.4 million for the fiscal year ended December 31, 2025, compared to $4.3 million for the fiscal year ended December 31, 2024. Non-interest expense increased $2.0 million, or 7.7%, to $28.0 million, for the fiscal year ended December 31, 2025, compared to $26.0 million for the fiscal year ended December 31, 2024. The following is a recap of the significant items that impacted the fourth quarter of 2025 and the fiscal year ended December 31, 2025: Interest income increased $4.0 million for the fourth quarter of 2025 compared to the fourth quarter of 2024, primarily due to an increase in interest and fees on loans of $5.2 million to $36.0 million, due to higher average outstanding loan balances and higher interest rates. The increase in interest income during the fourth quarter of 2025 was partially offset by a decrease in interest earned on average deposits held at the Federal Reserve Bank ("FRB") of $1.1 million, to $1.1 million, from $2.2 million in the fourth quarter of 2024. The decrease was due to lower cash balances held at the FRB and lower interest rates earned on those balances. For the year ended December 31, 2025, interest income increased $17.6 million, or 14.0%, from the fiscal year ended December 31, 2024, primarily driven by an increase in interest and fees on loans of $17.4 million, due to higher average outstanding loan balances and higher interest rates, as well as an increase in interest earned on average deposits held at the FRB of $0.3 million. Interest expense decreased $2.2 million for the three months ended December 31, 2025, compared to the same period in 2024, primarily due to lower market interest rates, as well as a change in the deposit mix with a reduction in higher cost money market deposits and an increase in interest checking deposits. For the year ended December 31, 2025, interest expense decreased $0.2 million compared to the fiscal year ended December 31, 2024, primarily due to lower market interest rates, as well as a change in the deposit and debt mix. The provision for credit losses increased $0.4 million for the three months ended December 31, 2025, compared to the same period in 2024, as a result of an increase in outstanding loan balances, partially offset by a decrease in vintage and qualitative loss rates. For the year ended December 31, 2025, the provision for credit losses increased $1.8 million from the fiscal year ended December 31, 2024 due to an increase in outstanding loan balances, partially offset by a decrease in vintage and qualitative loss rates. Non-interest income decreased $0.2 million for the three months ended December 31, 2025 compared to the same period in 2024, primarily as a result of a decrease in other income of $0.2 million. For the year ended December 31, 2025, non-interest income decreased $0.9 million compared to the fiscal year ended December 31, 2024, primarily driven by a decrease in other income of $0.6 million, a decrease in loan fees of $0.2 million, and a decrease in service fees on deposit accounts of $0.2 million. The decrease in other income during the year ended December 31, 2025, was primarily attributable to a decrease in one-time insurance payments and settlements received in 2024. Non-interest expense increased $0.7 million for the three months ended December 31, 2025 compared to the same period in 2024, primarily driven by an increase in other operating expense of $0.3 million, OREO expense of $0.3 million, and compensation and benefits expense of $0.1 million. For the fiscal year ended December 31, 2025, non-interest expense increased $2.0 million, primarily due to an increase in professional services of $0.7 million, an increase in compensation and benefits expense of $0.5 million, and an increase in other operating expense of $0.5 million, partially offset by a decrease in OREO expense of $0.2 million. The increase in professional services during the year ended December 31, 2025, was primarily due to a $0.6 million increase in legal fees. The increase in compensation and benefits expense was primarily due to an increase in salaries of $0.4 million, and a $0.1 million decrease in deferred loan origination costs attributable to a reduction in the number of loans originated. Income tax expense increased $1.2 million for the three months ended December 31, 2025 compared to the same period in 2024. For the year ended December 31, 2025, income tax expense increased $2.8 million compared to the fiscal year ended December 31, 2024. The effective tax rate for the fourth quarter of 2025 and the year ended December 31, 2025 was 24.1% and 23.5%, respectively, compared to 23.9% and 24.2% for the same periods in 2024. December 31, 2025 discussion of financial condition Total assets increased to $2.25 billion at December 31, 2025, from $2.14 billion at December 31, 2024, an increase of $107.2 million, or 5.0%. Cash and cash equivalents totaled $156.9 million at December 31, 2025, as compared to $221.5 million at December 31, 2024. The investment securities portfolio decreased to $13.5 million at December 31, 2025, from $14.8 million at December 31, 2024, a decrease of $1.2 million, or 8.4%, primarily due to pay downs of securities. Gross loans increased to $2.04 billion at December 31, 2025, from $1.87 billion at December 31, 2024, an increase of $167.1 million or 8.9%. The increase in loans was primarily due to an increase in the CRE non-owner occupied loan portfolio of $112.9 million, an increase in the construction portfolio loan balance of $64.4 million, and an increase in the CRE owner occupied loan portfolio balance of $22.7 million, partially offset by a decrease in the residential 1 - 4 family investment portfolio balance of $29.6 million. Nonperforming loans at December 31, 2025 decreased to $10.8 million, representing 0.53% of total loans, a decrease of $1.0 million, from $11.8 million of nonperforming loans at December 31, 2024. The decrease was primarily driven by a $1.5 million decrease in the CRE non-owner occupied loan portfolio, partially offset by a $0.3 million increase in the residential - 1 - 4 family portfolio, and a $0.1 million increase in the consumer portfolio. OREO at December 31, 2025 was $2.9 million, an increase of $1.3 million, from $1.6 million at December 31, 2024. Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.61% and 0.62% of total assets at December 31, 2025 and December 31, 2024, respectively. Loans past due 30 to 89 days were $3.5 million at December 31, 2025, an increase of $2.0 million from December 31, 2024. The allowance for credit losses was $34.6 million at December 31, 2025, as compared to $32.6 million at December 31, 2024. The ratio of the allowance for credit losses to total loans was 1.70% and 1.74% at December 31, 2025 and at December 31, 2024, respectively. The ratio of allowance for credit losses to non-performing loans was 321.0% at December 31, 2025, compared to 276.5%, at December 31, 2024. Total deposits were $1.80 billion at December 31, 2025, up from $1.63 billion at December 31, 2024, an increase of $127.6 million or 7.8% compared to December 31, 2024. The increase in deposits was attributed to an increase in money market deposits of $130.5 million, interest checking deposits of $49.4 million, and non-interest checking of $12.5 million, partially offset by a decrease in brokered time deposits of $41.9 million, time deposits of $11.4 million, and savings deposits of $11.4 million. Brokered interest checking deposits, included in the above balances, increased $45.0 million at December 31, 2025, from zero at December 31, 2024. Deposits from our cannabis related businesses decreased $90.0 million to $61.9 million at December 31, 2025, compared to $151.9 million at December 31, 2024. Total borrowings decreased $44.9 million during the twelve months ended December 31, 2025, to $143.4 million at December 31, 2025 from $188.3 million at December 31, 2024, primarily due to the repayment of $30.0 million of subordinated debt, and a decrease of $15.0 million in Federal Home Loan Bank of New York ("FHLBNY") advances. Total equity increased to $324.5 million at December 31, 2025, up from $300.1 million at December 31, 2024, an increase of $24.4 million, or 8.1%, primarily due to the retention of earnings, partially offset by the payment of $8.5 million of cash dividends, and the repurchase of Company common stock of $6.5 million. CEO outlook and commentary Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, provided the following statement: "2025 was a challenging year, an outcome that is not unusual when a new President takes office. Donald Trump was sworn in for his second term as President of the United States and immediately set an aggressive pace. Significant policy shifts were enacted early, including new tariffs, expanded gas drilling, strengthened border protection measures, and renewed efforts to address illegal immigration. Tensions also emerged between the Administration and Federal Reserve Chairman Jerome Powell, with the Administration pushing for faster rate cuts while the Fed adopted a more cautious 'wait‑and‑see' approach." "The geopolitical landscape shifted quickly as well. Major diplomatic efforts were launched to advance peace in the Middle East, and repeated, though ultimately unsuccessful, attempts were made to bring an end to the Russia–Ukraine war. These and other factors contributed to the heightened volatility that defined 2025." "Despite this environment, 2025 was a good year for Parke Bank. Net income available to common shareholders rose 37.3% over 2024, reaching $37.8 million, or $3.16 per diluted common share. This performance was driven by increased net interest income and continued disciplined expense management, resulting in an improved Cost Efficiency Ratio of 35.03%. Return on Average Assets strengthened to 1.77%, while Return on Average Common Equity increased to 12.07% at December 31, 2025." "Total loans grew 8.9% over 2024, ending the year at $2.04 billion. This growth was supported by a $2.1 million increase in the allowance for credit losses. Asset quality remains a primary focus: nonperforming loans decreased by $1 million year‑over‑year as of December 31, 2025, and the allowance for credit losses stood at 1.7% of total loans." "Looking ahead, uncertainty surrounding interest rates is expected to continue into 2026, with unusually diverse viewpoints emerging among Federal Reserve Board members regarding the future direction of rates. Our balance sheet is structured to remain nimble and responsive to changes in the interest rate environment. Strong earnings, robust shareholder equity, and disciplined expense control, position the Company to monitor market conditions carefully and act quickly to capitalize on emerging opportunities, while continuing to operate a safe, sound, and resilient financial institution." Forward Looking Statement Disclaimer This release may contain forward-looking statements. Such forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from those currently anticipated due to a number of factors; our ability to maintain strong capital, strong asset quality and strong reserves; our ability to remain nimble and responsive to changes in the rate environment; our ability to generate strong earnings with increased interest income and net interest income; our ability to continue the financial strength and growth of our Company and Parke Bank; our ability to continue to increase shareholders' equity, maintain good credit quality; our ability to be well structured to face challenging economic conditions; our ability to ensure that our loan loss provision is well positioned for the future; our ability to continue to reduce our nonperforming loans and delinquencies and the expenses associated with them; our ability to realize a high recovery rate on disposition of troubled assets; our ability to continue to pay a dividend in the future; our ability to enhance shareholder value in the future; our ability to continue growing our Company, our earnings and shareholders' equity; and our ability to continue to grow our loan portfolio; the possibility of additional corrective actions or limitations on the operations of Parke Bancorp, Inc. and Parke Bank being imposed by banking regulators, therefore, readers should not place undue reliance on any forward-looking statements. Parke Bancorp, Inc. does not undertake, and specifically disclaims, any obligations to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such circumstance. (PKBK-ER) View original content:https://www.prnewswire.com/news-releases/parke-bancorp-inc-announces-fourth-quarter-2025-earnings-302666847.html

WASHINGTON TOWNSHIP, N.J., Oct. 22, 2025 /PRNewswire/ -- Parke Bancorp, Inc. ("Parke Bancorp" or the "Company") (NASDAQ: "PKBK"), the parent company of Parke Bank, announced its operating results for the three and nine months ended September 30, 2025. Highlights for the three and nine months ended September 30, 2025: Net income available to common shareholders was $10.6 million, or $0.90 per basic common share and $0.89 per diluted common share, for the three months ended September 30, 2025, an increase of $3.1 million, or 41.6%, compared to net income available to common shareholders of $7.5 million, or $0.63 per basic common share and $0.62 per diluted common share, for the three months ended September 30, 2024. The increase was primarily due to a $5.4 million increase in net interest income, partially offset by a $0.5 million increase in provision for credit losses, and a $0.8 million increase in non-interest expense. Net interest income increased $5.4 million, or 37.0%, to $20.2 million for the three months ended September 30, 2025, compared to $14.7 million for the same period in 2024. The Company recorded a provision for credit losses of $0.4 million for the three months ended September 30, 2025, compared to a recovery of provision for credit losses of $0.1 million for the same period in 2024. Non-interest income decreased slightly by $0.05 million, or 5.6%, to $0.85 million for the three months ended September 30, 2025, compared to $0.9 million for the same period in 2024. Non-interest expense increased $0.8 million, or 12.6%, to $7.2 million for the three months ended September 30, 2025, compared to $6.4 million for the same period in 2024. Net income available to common shareholders was $26.7 million, or $2.26 per basic common share and $2.23 per diluted common share, for the nine months ended September 30, 2025, an increase of $6.6 million, or 32.7%, compared to net income available to common shareholders of $20.1 million, or $1.68 per basic common share and $1.66 per diluted common share, for the same period in 2024. The increase is primarily due to an increase in net interest income of $11.6 million, partially offset by a $1.4 million increase in provision for credit losses, a $0.7 million decrease in non-interest income, and a $1.2 million increase in non-interest expense. Net-interest income increased $11.6 million, or 26.8%, to $54.6 million for the nine months ended September 30, 2025, compared to $43.1 million for the same period in 2024. The Company recorded a provision for credit losses of $1.9 million for the nine months ended September 30, 2025, compared to a provision for credit losses of $0.5 million for the same period in 2024. Non-interest income decreased $0.7 million, or 21.4%, to $2.5 million for the nine months ended September 30, 2025, compared to $3.2 million for the same period in 2024. Non-interest expense increased $1.2 million, or 6.5%, to $20.4 million for the nine months ended September 30, 2025, compared to $19.1 million for the same period in 2024. The following is a recap of the significant items that impacted results of operations for the three and nine months ended September 30, 2025: Interest income increased $4.4 million during the three months ended September 30, 2025 compared to the same period in 2024, primarily due to an increase in interest and fees on loans of $4.8 million, or 15.8%, to $34.9 million, resulting from higher market interest rates and higher average loan portfolio balances. Interest earned on average deposits held at the Federal Reserve Bank ("FRB") decreased $0.3 million during the three months ended September 30, 2025, due to lower average balances on deposit. For the nine months ended September 30, 2025, interest income increased $13.6 million from the same period in 2024, primarily due to an increase in interest and fees on loans of $12.2 million, or 14.0%, to $99.1 million, resulting from an increase in average outstanding loan balances, and higher market interest rates. Interest earned on average deposits held at the FRB increased $1.4 million during the nine months ended September 30, 2025, due to higher average balances held on deposit. Interest expense decreased $1.1 million, or 6.1%, to $16.3 million for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to the payoff of the Company's $30.0 million, 6.5% subordinate notes during the three months ended September 30, 2025, and a $75.0 million decrease in advances from the Federal Home Loan Bank of New York ("FHLBNY"), partially offset by an increase in interest expense on deposits, due to an increase in the balance of interest-bearing deposits. For the nine months ended September 30, 2025, interest expense increased $2.0 million, or 4.2%, to $50.7 million, primarily due to higher market interest rates, combined with changes in the mix of deposits and borrowings. The Company booked a provision for credit losses of $0.4 million for the three months ended September 30, 2025, compared to a recovery of provision for credit losses of $0.1 million for the same period in 2024. The increase in the provision for credit losses for the three months ended September 30, 2025, was primarily driven by an increase of $48.4 million in the construction loan portfolio and an increase of $15.6 million in the commercial non-owner occupied loan portfolio from June 30, 2025, partially offset by a decrease in the multi-family loan portfolio of $12.8 million, and a decrease in the loss rate for the residential - 1 to 4 family investment loan portfolio from June 30, 2025. The provision for credit losses increased $1.4 million, or 255.0%, to $1.9 million, for the nine months ended September 30, 2025, compared to a provision for credit losses of $0.5 million for the same period in 2024. The increase was primarily driven by an increase in the construction loan portfolio balance of $63.8 million, and an increase in the commercial non-owner occupied loan balance of $80.2 million, from the balance at December 31, 2024, partially offset by a decrease in the residential - 1 to 4 family investment loan portfolio balance of $28.0 million, and a decrease in the multi-family portfolio loan balance of $9.6 million. Non-interest income decreased $0.05 million, or 5.6%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily as a result of a decrease in loan fees, service fees on deposit accounts, and other income. For the nine months ended September 30, 2025, non-interest income decreased $0.7 million, or 21.4%, to $2.5 million, compared to the same period in 2024. The decrease was primarily driven by a decrease in other income of $0.4 million, a decrease in service fees on deposit accounts of $0.1 million, and a decrease in loan fees of $0.1 million. Non-interest expense increased $0.8 million, or 12.6%, to $7.2 million for the three months ended September 30, 2025, compared to the same period in 2024. The increase was primarily driven by an increase in compensation and benefits of $0.1 million, an increase in professional services expense of $0.2 million, and an increase in other operating expense of $0.3 million, partially offset by a decrease in other real estate owned ("OREO") expense of $0.1 million, compared to the same period in 2024. For the nine months ended September 30, 2025, non-interest expense increased $1.2 million, or 6.5%, to $20.4 million, compared to the same period in 2024. The increase in non-interest expense was primarily due to an increase in professional services of $0.6 million, an increase in compensation and benefits of $0.4 million, and an increase in data processing expense of $0.3 million, partially offset by a decrease in OREO expense of $0.5 million, compared to the nine months ended September 30, 2024. Income tax expense increased $1.0 million for the three months ended September 30, 2025 compared to the same period in 2024. For the nine months ended September 30, 2025, income tax expense increased $1.7 million, compared to the same period in 2024. The effective tax rate for the three and nine months ended September 30, 2025 was 21.2% and 23.3%, respectively, compared to 20.1% and 24.3% for the same period in 2024. September 30, 2025 discussion of financial condition Total assets increased to $2.17 billion at September 30, 2025, from $2.14 billion at December 31, 2024, an increase of $29.9 million, or 1.4%, primarily due to an increase in net loans, partially offset by a decrease in cash and cash equivalents. Cash and cash equivalents totaled $159.3 million at September 30, 2025, as compared to $221.5 million at December 31, 2024. The decrease in cash and cash equivalents was primarily due to an increase in loan balances, and a decrease in FHLBNY and subordinated debt borrowings, partially offset by an increase in deposits. The investment securities portfolio decreased to $13.9 million at September 30, 2025, from $14.8 million at December 31, 2024, a decrease of $0.9 million, or 6.1%, primarily due to pay downs of securities, partially offset by the purchase of a corporate security for $0.5 million . Gross loans increased $92.0 million or 4.9%, to $1.96 billion at September 30, 2025, compared to gross loans at December 31, 2024. Nonperforming loans at September 30, 2025 increased to $12.4 million, or 0.63% of total loans, an increase of $0.6 million, or 5.5%, from $11.8 million of nonperforming loans at December 31, 2024. OREO at September 30, 2025 was $1.6 million, unchanged from December 31, 2024. Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.64% and 0.62% of total assets at September 30, 2025 and December 31, 2024, respectively. Loans past due 30 to 89 days were $2.5 million at September 30, 2025, an increase of $1.1 million from December 31, 2024. The allowance for credit losses was $33.9 million at September 30, 2025, as compared to $32.6 million at December 31, 2024. The ratio of the allowance for credit losses to total loans was 1.73% at September 30, 2025, and 1.74% at December 31, 2024. The ratio of allowance for credit losses to non-performing loans was 272.8% at September 30, 2025, compared to 276.5%, at December 31, 2024. Total deposits were $1.75 billion at September 30, 2025, up from $1.63 billion at December 31, 2024, an increase of $121.5 million or 7.5%, compared to December 31, 2024. The increase in deposits was primarily driven by an increase in money market deposits of $273.3 million, partially offset by a decrease in time deposits of $135.2 million, a decrease in non-interest checking deposits of $8.8 million, and a decrease in savings deposits of $8.5 million. Total borrowings decreased $104.9 million during the nine months ended September 30, 2025, to $83.4 million at September 30, 2025, from $188.3 million at December 31, 2024, primarily due to the repayment of $75.0 million of FHLBNY term borrowings, and the repayment of $30.0 million of subordinated debt. Total equity increased to $314.8 million at September 30, 2025, up from $300.1 million at December 31, 2024, an increase of $14.8 million, or 4.9%, primarily due to the retention of earnings, partially offset by the payment of $6.4 million of cash dividends, and the repurchase of Company common stock of $6.5 million. CEO outlook and commentary Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, provided the following statement: "The long-anticipated interest rate reduction by the Federal Reserve Board occurred with a 25-basis point reduction, although market volatility continues. There seems to be differences of opinion on the Federal Reserve Board, with some members thinking rates need further reduction, other members believe rates should remain unchanged, and there are also those who think rates may need to be increased due to inflation goals not being met. All of this uncertainty regarding interest rates is adding to the market volatility. Geopolitical challenges also contribute to the market volatility, with the Russia-Ukraine and Israel-Hamas wars continuing, although subsequent to September 30th a peace agreement was reached for the Isael-Hamas conflict. As of September 30th, the job market began to soften, a trend further intensified by the government shutdown that followed. Unfortunately, there doesn't seem to be a near-term solution to the government shutdown." "Recently, the OCC and the Federal Reserve regulatory agencies have released statements reducing some of the regulatory pressure currently on community banks. Some issues addressed were Fair Lending examinations and restricting the parameters available to regulators for enforcement actions. These and other changes should provide community banks with the long-needed ability to better address their communities' banking and neighborhood needs." "It's being reported that the residential single-family market is cooling but stabilizing. Mortgage rates, although declining, are still higher than pre-pandemic rates, keeping some sellers out of the market with "rate lock", an existing low-rate mortgage that they don't want to give up. Higher inventory and homes being on the market longer should help buyers negotiate a better price in the market. Single family construction starts have slowed 6% to 7% year over year. The residential rental market has been reported as stable in the Philadelphia Metro area." "Parke Bank experienced positive financial results in the 3rd quarter of 2025 with Net Income growing 41.6% to $10.6 million, compared to the three months ended September 30, 2024. That is an increase of $3.1 million. Net Income to our common shareholders for the nine months ended September 30, 2025 grew 32.7% over the nine months ended September 30, 2024, to $26.7 million. The growth of our Net Income was supported by increased interest income due to the continued growth of our loan portfolio, in addition to continued tight control of our expenses with an improved Efficiency Ratio of 35.68% as of September 30, 2025, compared to 41.37% as of September 30, 2024." "Parke Bank increased loan generation during the nine months ended September 30, 2025, increasing the outstanding loan balance by $92.0 million, after principal payments and loan payoffs. The outstanding loan balance as of September 30, 2025, was $1.96 billion. New loan generation during the nine months ended September 30, 2025, was $144 million. This growth was partially supported by an increase in loan demand and adding lending staff to our company." "Asset Quality continues to be a top priority as we maintain a 1.73% provision for credit losses as of September 30, 2025, slightly less than 1.74% as of December 31, 2024. Our non-performing loans as of September 30, 2025, increased to $12.4 million, up from $11.8 million as of December 31, 2024." "Parke Bank continues to be in a good position to manage the continued volatile market, which includes the complications caused by the government shutdown. I have been in banking for a long time and I can't remember a time when either the economy was in a slowdown or recession, and if not, there were warnings of a slowdown. We always need to be prepared for these challenges with strong equity of $314.8 million, up from $300.1 million as of December 31, 2024, strong liquidity, loan growth and continued tight control of our expenses. We have repaid $30.0 million in subordinated debt, further strengthening our balance sheet and reducing our interest expense. We always look for new opportunities in the market, while operating a safe and sound financial institution." Forward Looking Statement Disclaimer This release may contain forward-looking statements. Such forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from those currently anticipated due to a number of factors; our ability to maintain a strong capital base, strong earning and strict cost controls; our ability to generate strong revenues with increased interest income and net interest income; our ability to continue the financial strength and growth of our loan portfolio; our ability to continue to increase shareholders' equity, maintain strong loan underwriting and allowance for credit losses; our ability to react quickly to any increase in loan delinquencies; our ability to face current challenges in the market; our ability to be well positioned navigate the challenging economic volatility; our ability to continue to reduce our nonperforming loans and delinquencies and the expenses associated with them; our ability to increase the rate of growth of our loan portfolio; our ability to continue to improve net interest margin; our ability to enhance shareholder value in the future; our ability to continue growing our Company, our earnings and shareholders' equity; the possibility of additional corrective actions or limitations on the operations of the Company. and Parke Bank being imposed by banking regulators, therefore, readers should not place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims, any obligations to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such circumstance. (PKBK-ER) Financial Supplement: Table 1: Condensed Consolidated Balance Sheets (Unaudited) Table 2: Consolidated Income Statements (Unaudited) Table 3: Operating Ratios (unaudited) Table 4: Asset Quality Data (unaudited) View original content:https://www.prnewswire.com/news-releases/parke-bancorp-inc-announces-third-quarter-2025-earnings-302591535.html

WASHINGTON TOWNSHIP, N.J., July 16, 2025 /PRNewswire/ -- Parke Bancorp, Inc. ("Parke Bancorp" or the "Company") (NASDAQ: "PKBK"), the parent company of Parke Bank, announced its operating results for the three and six months ended June 30, 2025. Highlights for the three and six months ended June 30, 2025: Net income available to common shareholders was $8.3 million, or $0.70 per basic common share and $0.69 per diluted common share, for the three months ended June 30, 2025, an increase of $1.8 million, or 28.3%, compared to net income available to common shareholders of $6.5 million, or $0.54 per basic common share and $0.53 per diluted common share, for the three months ended June 30, 2024. The increase was primarily due to a $3.6 million increase in net interest income, partially offset by a $0.5 million increase in provision for credit losses, a $0.4 million decrease in non-interest income, and a $0.4 million increase in non-interest expense. Net interest income increased $3.6 million, or 24.9%, to $17.9 million for the three months ended June 30, 2025, compared to $14.3 million for the same period in 2024. The Company recorded a provision for credit losses of $1.0 million for the three months ended June 30, 2025, compared to a provision for credit losses of $0.5 million for the same period in 2024. Non-interest income decreased $0.4 million, or 32.0%, to $0.8 million for the three months ended June 30, 2025, compared to $1.2 million for the same period in 2024. Non-interest expense increased $0.4 million, or 7.1%, to $6.7 million for the three months ended June 30, 2025, compared to $6.2 million for the same period in 2024. Net income available to common shareholders was $16.1 million, or $1.36 per basic common share and $1.34 per diluted common share, for the six months ended June 30, 2025, an increase of $3.5 million, or 27.4%, compared to net income available to common shareholders of $12.6 million, or $1.05 per basic common share and $1.04 per diluted common share, for the same period in 2024. The increase is primarily due to an increase in net interest income of $6.1 million, partially offset by a $0.9 million increase in provision for credit losses, a $0.6 million decrease in non-interest income, and a $0.4 million increase in non-interest expense. Net-interest income increased $6.1 million, or 21.6%, to $34.5 million for the six months ended June 30, 2025, compared to $28.4 million for the same period in 2024. The Company recorded a provision for credit losses of $1.6 million for the six months ended June 30, 2025, compared to a provision for credit losses of $0.7 million for the same period in 2024. Non-interest income decreased $0.6 million, or 27.7%, to $1.6 million for the six months ended June 30, 2025, compared to $2.3 million for the same period in 2024. Non-interest expense increased $0.4 million, or 3.5%, to $13.2 million for the six months ended June 30, 2025, compared to $12.8 million for the same period in 2024. The following is a recap of the significant items that impacted the three and six months ended June 30, 2025: Interest income increased $4.8 million for the second quarter of 2025 compared to the same period in 2024, primarily due to an increase in interest and fees on loans of $4.0 million, or 14.0%, to $32.8 million, primarily driven by higher market interest rates and higher average loan portfolio balances. Interest earned on average deposits held at the Federal Reserve Bank ("FRB") increased $0.8 million during the three months ended June 30, 2025, due to higher average balances on deposit. For the six months ended June 30, 2025, interest income increased $9.2 million from the same period in 2024, primarily due to an increase in interest and fees on loans of $7.4 million, or 13.1%, to $64.2 million, primarily due to an increase in average outstanding loan balances, and higher market interest rates. Interest earned on average deposits held at the FRB increased $1.8 million during the six months ended June 30, 2025, due to higher average balances held on deposit. Interest expense increased $1.3 million, or 8.0%, to $17.2 million for the three months ended June 30, 2025, compared to the same period in 2024, primarily due to higher market interest rates, combined with changes in the mix of deposits and borrowings. For the six months ended June 30, 2025, interest expense increased $3.1 million, or 9.9%, to $34.4 million, primarily due to higher market interest rates, combined with changes in the mix of deposits and borrowings. The Company booked a provision for credit losses of $1.0 million for the three months ended June 30, 2025, compared to a provision for credit losses of $0.5 million for the same period in 2024. The provision for credit losses for the three months ended June 30, 2025, was primarily driven by an increase of $37.4 million in the construction loan portfolio and an increase of $24.5 million in the commercial non-owner occupied loan portfolio from March 31, 2025, partially offset by a decrease in the commercial owner occupied loan portfolio of $13.0 million, and a decrease of $11.6 million in the residential - 1 to 4 family investment loan portfolio from March 31, 2025. The provision for credit losses for the six months ended June 30, 2025, increased $0.9 million, or 129.1%, to $1.6 million, compared to a provision for credit losses of $0.7 million for the same period in 2024. The increase was primarily driven by an increase in the commercial non-owner occupied and construction loan portfolios outstanding loan balances of $66.6 million, from the balance at December 31, 2024, partially offset by a decrease in the residential - 1 to 4 family investment loan portfolio. The provision expense of $0.7 million during the same period in 2024 was primarily driven by an increase in the construction and multi-family loan portfolios outstanding loan balances of $17.8 million, from the balances at December 31, 2023. Non-interest income decreased $0.4 million, or 32.0%, for the three months ended June 30, 2025, compared to the same period in 2024, primarily as a result of a decrease in other income attributed to legal settlements and insurance proceeds received during the same period in 2024. For the six months ended June 30, 2025, non-interest income decreased $0.6 million, or 27.7%, to $1.6 million, compared to the same period in 2024. The decrease was primarily driven by a decrease in other income of $0.4 million, and a decrease in service fees on deposit accounts of $0.1 million. Non-interest expense increased $0.4 million, or 7.1%, to $6.7 million for the three months ended June 30, 2025, compared to the same period in 2024. The increase was primarily driven by an increase in compensation and benefits of $0.2 million, an increase in data processing expense of $0.2 million, and an increase in professional services of $0.1 million, partially offset by a decrease in other real estate owned ("OREO") expense of $0.1 million, compared to the same period in 2024. For the six months ended June 30, 2025, non-interest expense increased $0.4 million, or 3.5%, to $13.2 million, compared to the same period in 2024. The increase in non-interest expense was primarily due to an increase in professional services of $0.4 million, an increase in compensation and benefits of $0.3 million, and an increase in data processing expense of $0.2 million, partially offset by a decrease in OREO expense of $0.4 million, and a decrease in other operating expense of $0.2 million, compared to the six months ended June 30, 2024. Income tax expense increased $0.4 million for the three months ended June 30, 2025 compared to the same period in 2024. For the six months ended June 30, 2025, income tax expense increased $0.7 million, compared to the same period in 2024. The effective tax rate for the three and six months ended June 30, 2025 was 24.9% and 24.7%, respectively, compared to 26.6% and 26.6% for the same period in 2024. June 30, 2025 discussion of financial condition Total assets increased to $2.17 billion at June 30, 2025, from $2.14 billion at December 31, 2024, an increase of $28.1 million, or 1.3%, primarily due to an increase in net loans, partially offset by a decrease in cash and cash equivalents. Cash and cash equivalents totaled $184.3 million at June 30, 2025, as compared to $221.5 million at December 31, 2024. The decrease in cash and cash equivalents was primarily due to an increase in loan balances, and a decrease in Federal Home Loan Bank of New York ("FHLBNY") borrowings, partially offset by an increase in deposits. The investment securities portfolio decreased to $14.0 million at June 30, 2025, from $14.8 million at December 31, 2024, a decrease of $0.8 million, or 5.1%, primarily due to pay downs of securities. Gross loans increased $66.6 million or 3.6%, to $1.93 billion at June 30, 2025, compared to gross loans at December 31, 2024. Nonperforming loans at June 30, 2025 decreased to $11.2 million, representing 0.58% of total loans, a decrease of $0.6 million, or 4.9%, from $11.8 million of nonperforming loans at December 31, 2024. OREO at June 30, 2025 was $1.6 million, unchanged from December 31, 2024. Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.59% and 0.62% of total assets at June 30, 2025 and December 31, 2024, respectively. Loans past due 30 to 89 days were $16.9 million at June 30, 2025, an increase of $15.5 million from December 31, 2024. The increase in loans past due 30 - 89 days was mainly due to a commercial non-owner occupied loan with a balance of $11.7 million, and a commercial non-owner occupied loan with a balance of $2.5 million. The $11.7 million loan was risk rated substandard at June 30, 2025. The allowance for credit losses was $33.8 million at June 30, 2025, as compared to $32.6 million at December 31, 2024. The ratio of the allowance for credit losses to total loans was 1.75% at June 30, 2025, and 1.74% at December 31, 2024. The ratio of allowance for credit losses to non-performing loans was 301.5% at June 30, 2025, compared to 276.5%, at December 31, 2024. Total deposits were $1.69 billion at June 30, 2025, up from $1.63 billion at December 31, 2024, an increase of $62.4 million or 3.8% compared to December 31, 2024. The increase in deposits was primarily driven by an increase in money market deposits of $199.6 million, partially offset by a decrease in brokered time deposits of $124.1 million, and a decrease in non-interest checking deposits of $9.9 million. Total borrowings decreased $44.9 million during the six months ended June 30, 2025, to $143.4 million at June 30, 2025, from $188.3 million at December 31, 2024, primarily due to the repayment of $45.0 million of FHLBNY term borrowings. Total equity increased to $312.2 million at June 30, 2025, up from $300.1 million at December 31, 2024, an increase of $12.1 million, or 4.0%, primarily due to the retention of earnings, partially offset by the payment of $4.2 million of cash dividends. CEO outlook and commentary Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, provided the following statement: "Market volatility continues in 2025 as President Trump's tariffs are negotiated, combined with the geopolitical unrest. Many of the tariff implementations were extended, some settled, and some added. Contributing to the market volatility is the disagreement between the Federal Reserve Board and the Administration with respect to reducing short term interest rates. President Trump believes that inflation and job data support lowering interest rates immediately. Federal Reserve Chairman Powell, however, has taken a wait-and-see approach to see if the tariffs will cause a spike in the inflation rate. The tariffs have also affected the real estate construction industry, due to the possible increase in material prices, and in some instances, the availability of some building materials. The Russia-Ukraine war also puts a cloud over the market, with the continuing bombing causing civilian deaths and destruction. At this time, however, it does not appear that the bombing of nuclear production sites in Iran has disrupted the global oil supply." "Parke Bank experienced continued good financial results in the second quarter of 2025, with net income increasing to $8.3 million, or 28.3%, compared to the three months ended June 30, 2024. That is an increase of $1.8 million. Net income to our common shareholders in the six months of 2025 increased to $16.1 million, or 27.4%, as compared to the six months ended June 30, 2024. The growth of our net income was supported by increased interest income due to the growth of our loan portfolio, in addition to continued tight control of our expenses. We had an efficiency ratio of 36.60% as of June 30, 2025, compared to 41.69% as of June 30, 2024." "Parke Bank moved forward in 2025 with increased loan generation, with loans growing 3.6% over December 31, 2024, to $1.93 billion. This growth was partially supported by an increase in loan demand and the addition of lending staff to our company." "Asset quality is always a main focus of our Parke Bank. Our non-performing loans as of June 30, 2025, decreased to $11.2 million, 4.9%, from December 31, 2024. Past-due loans 30 to 89 days increased to $16.9 million, an increase of $15.5 million from December 31, 2024, primarily due to one commercial loan borrower whose loan was classified as sub-standard at June 30, 2025. Our allowance for credit losses is 1.75% as of June 30, 2025, compared to 1.74% as of December 31, 2024." "Parke Bank is well-positioned to navigate the continued volatile market, with strong equity of $312.2 million, up from $300.1 million as of December 31, 2024, strong liquidity, loan growth, and continued tight control of our expenses. We are always looking for new opportunities to generate a good return for our shareholders while operating a safe and sound financial institution." Forward Looking Statement Disclaimer This release may contain forward-looking statements. Such forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from those currently anticipated due to a number of factors; our ability to maintain a strong capital base, strong earning and strict cost controls; our ability to generate strong revenues with increased interest income and net interest income; our ability to continue the financial strength and growth of our loan portfolio; our ability to continue to increase shareholders' equity, maintain strong loan underwriting and allowance for credit losses; our ability to react quickly to any increase in loan delinquencies; our ability to face current challenges in the market; our ability to be well positioned navigate the challenging economic volatility; our ability to continue to reduce our nonperforming loans and delinquencies and the expenses associated with them; our ability to increase the rate of growth of our loan portfolio; our ability to continue to improve net interest margin; our ability to enhance shareholder value in the future; our ability to continue growing our Company, our earnings and shareholders' equity; the possibility of additional corrective actions or limitations on the operations of the Company. and Parke Bank being imposed by banking regulators, therefore, readers should not place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims, any obligations to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such circumstance. (PKBK-ER) Financial Supplement: Table 1: Condensed Consolidated Balance Sheets (Unaudited) Table 2: Consolidated Income Statements (Unaudited) Table 3: Operating Ratios (unaudited) Table 4: Asset Quality Data (unaudited) View original content:https://www.prnewswire.com/news-releases/parke-bancorp-inc-announces-second-quarter-2025-earnings-302505998.html SOURCE Parke Bancorp, Inc.