PKBK

Parke Bancorp came into this Q3 2026 report with a reputation as a quietly profitable community bank trading on a discount, supported by a P/E of 8.1x and a 2.46% dividend yield. The stock slipped about 1% on the first full day after earnings, yet the latest quarter again delivered solid profitability with basic earnings per share of roughly US$1.04 and net income just over US$12 million. The central focus is the profitability trend. Trailing 12 month net profit margins around 51.9% continue to highlight that this bank earns strong economics on every dollar of revenue, even if the share price reaction remains muted. Like the economics Parke Bancorp is earning on each dollar of revenue but uneasy about the muted share price reaction after these results? Compare PKBK with a curated list of solid, profitable banks and financials in our list of solid balance sheet and fundamentals stocks (25 results) - Total Revenue (Q3 2026 vs. Q3 2025): US$23.03 million vs. US$20.65 million (higher year over year) - Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): US$12.164 million vs. US$10.625 million (higher year over year) - Basic EPS (Q3 2026 vs. Q3 2025): US$1.04 vs. US$0.90 (higher earnings per share) - Net Interest Margin (NIM, Q3 2026 vs. Q3 2025): Not disclosed for Q3 2026 vs. 3.83% in Q3 2025 (prior year reference only) Ask Charlie what Parke Bancorp's low P/E really signals. For a community lender like Parke Bancorp, these numbers give the bullish story fresh support. Total revenue reached US$23.03 million while net income excluding extra items came in at US$12.164 million, both above the prior Q3. Basic EPS stepped up to US$1.04. That kind of earnings power, paired with a trailing net margin near 51.9%, suggests the basic deposit and lending engine is still throwing off healthy profit, even if the recent share price dip of 0.94% hints at only cautious enthusiasm. The more cautious view leans on sector worries rather than this specific print. Net interest margin, a key banking metric, was not disclosed for Q3 2026, while investors only see a 30 day share price decline of 4.21%. That leaves room for concern about funding costs or credit quality. At the same time, higher year on year revenue and earnings, plus commentary that net interest income and margin have improved, make it harder to argue that immediate pressure on Parke Bancorp's business model is intensifying right now. After earnings that show higher revenue and EPS but a 5 year earnings decline, it is fair to ask whether Parke Bancorp's current profitability is masking deeper structural issues. Review our independent risk analysis for Parke Bancorp which shows 1 important warning sign Parke Bancorp just reported a profitable quarter that still left some investors cautious. The real opportunity could sit in stocks the market has not fully re-priced yet. - Company 1 - 28% below our estimate - supplies custom chips and connectivity hardware that large cloud clients rely on for AI scale and uptime. - Company 2 - 40% below our estimate - sells tracker and control systems that project developers adopt once utility scale solar backlogs and storage add-ons build. - Company 3 - 30% below our estimate - provides full-stack accelerated computing platforms that cloud providers use when turning large AI infrastructure commitments into deployed capacity. Those are three of them. See all 33 potentially undervalued companies → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PKBK. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Highlights: | | Net Income: | $12.2 million for Q3 2026, increased 14.5% over Q3 2025 Revenue: | $39.6 million for Q3 2026, increased 6.1% over Q3 2025 Total Assets: | $2.33 billion, increased 3.7% over December 31, 2025 NIM: | 4.15% for the year to date 2026 compared to 3.49% for year to date 2025 WASHINGTON TOWNSHIP, N.J., Oct. 21, 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 nine months ended September 30, 2026. Highlights for the three and nine months ended September 30, 2026: - Net income available to common shareholders was $12.2 million, or $1.04 per basic common share and $1.02 per diluted common share, for the three months ended September 30, 2026, an increase of $1.5 million, or 14.5%, compared to net income available to common shareholders of $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. The increase was primarily due to a $2.9 million increase in net interest income, and a $0.4 million decrease in non-interest expense, partially offset by a $0.6 million increase in provision for credit losses. - Net interest income increased $2.9 million, or 14.2%, to $23.0 million for the three months ended September 30, 2026, compared to $20.2 million for the same period in 2025. - The Company recorded a provision for credit losses of $1.0 million for the three months ended September 30, 2026, compared to a provision for credit losses of $0.4 million for the same period in 2025. - Non-interest income increased by $0.1 million, or 14.2%, to $1.0 million for the three months ended September 30, 2026, compared to $0.9 million for the same period in 2025. - Non-interest expense decreased $0.4 million, or 5.4%, to $6.8 million for the three months ended September 30, 2026, compared to $7.2 million for the same period in 2025. - Net income available to common shareholders was $36.2 million, or $3.09 per basic common share and $3.04 per diluted common share, for the nine months ended September 30, 2026, an increase of $9.6 million, or 35.9%, compared to net income available to common shareholders of $26.7 million, or $2.26 per basic common share and $2.23 per diluted common share, for the same period in 2025. The increase is primarily due to an increase in net interest income of $13.5 million, and a $0.2 million increase in non-interest income, partially offset by a $0.5 million increase in non-interest expense, and a $3.7 million increase in income tax expense. - Net interest income increased $13.5 million, or 24.8%, to $68.2 million for the nine months ended September 30, 2026, compared to $54.6 million for the same period in 2025. - The Company recorded a provision for credit losses of $1.8 million for the nine months ended September 30, 2026, compared to a provision for credit losses of $1.9 million for the same period in 2025. - Non-interest income increased $0.2 million, or 8.6%, to $2.7 million for the nine months ended September 30, 2026, compared to $2.5 million for the same period in 2025. - Non-interest expense increased $0.5 million, or 2.6%, to $20.9 million for the nine months ended September 30, 2026, compared to $20.4 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 nine months ended September 30, 2026: Interest income increased $2.2 million during the three months ended September 30, 2026 compared to the same period in 2025, primarily due to an increase in interest and fees on loans of $2.1 million, or 6.1%, to $37.0 million, resulting from higher market interest rates and higher average loan portfolio balances. For the nine months ended September 30, 2026, interest income increased $8.7 million from the same period in 2025, primarily due to an increase in interest and fees on loans of $10.7 million, or 10.8%, to $109.9 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 nine months ended September 30, 2026, due to lower average balances on deposit, and a decrease in the interest rate on those deposits. Interest expense decreased $0.7 million, or 4.3%, to $15.6 million for the three months ended September 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, partially offset by an increase in interest expense on borrowings, due to an increase in Federal Home Loan Bank of New York ("FHLBNY") borrowings. For the nine months ended September 30, 2026, interest expense decreased $4.8 million, or 9.6%, to $45.9 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 $1.0 million for the three months ended September 30, 2026, compared to a provision for credit losses of $0.4 million for the same period in 2025. The increase in the provision for credit losses for the three months ended September 30, 2026, was due to an increase in loan balances during the three months ended September 30, 2026, as compared to the increase in loan balances during the same period in 2025. The provision for credit losses for the nine months ended September 30, 2026 decreased $0.1 million, or 4.7%, to $1.8 million, compared to a provision for credit losses of $1.9 million for the same period in 2025. Non-interest income increased $0.1 million, or 14.2%, for the three months ended September 30, 2026, compared to the same period in 2025, primarily as a result of an increase in bank owned life insurance ("BOLI") income, and an increase in loan fees, partially offset by a decrease in service fees on deposit accounts. For the nine months ended September 30, 2026, non-interest income increased $0.2 million, primarily driven by a $0.2 million increase in BOLI, and a $0.1 million increase in loans fees, partially offset by a $0.1 million decrease in service fees on deposit accounts. Non-interest expense decreased $0.4 million, or 5.4%, to $6.8 million for the three months ended September 30, 2026, compared to the same period in 2025. The decrease was primarily driven by a decrease in professional services expense of $1.0 million, partially offset by an increase in compensation and benefits of $0.2 million, and an increase in OREO expense of $0.3 million. The decrease in professional services expense was primarily due to a $0.3 million transfer of OREO related legal fees to OREO expense, and a $0.6 million decrease in other professional fees attributed to lower BSA related consulting expense. The increase in OREO was primarily due to the transfer of OREO legal fees from professional fee expense of $0.3 million. For the nine months ended September 30, 2026, non-interest expense increased $0.5 million, or 2.6%, to $20.9 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 $0.9 million, and an increase in other operating expense of $0.5 million, partially offset by a decrease in professional services expense of $1.1 million, and a decrease in data processing expense of $0.3 million, compared to the nine months ended September 30, 2025. The increase in compensation and benefits is primarily due to the increase in staff levels, and annual wage growth. The increase in other operating expense is primarily due to an increase in travel expense, miscellaneous loan expenses, and miscellaneous operating expenses. The decrease in professional services expense is primarily due to a $0.6 million decrease in legal fees, and a $0.4 million decrease in other professional fees attributed to lower BSA related consulting expense. The decrease in data processing expense is primarily due to lower core banking system expense. Income tax expense increased $1.2 million for the three months ended September 30, 2026, compared to the same period in 2025. For the nine months ended September 30, 2026, income tax expense increased $3.7 million, compared to the same period in 2025. The effective tax rate for the three and nine months ended September 30, 2026 was 25.1% and 24.7%, respectively, compared to 21.1% and 23.3% for the same period in 2025. September 30, 2026 discussion of financial condition - Total assets increased to $2.33 billion at September 30, 2026, from $2.25 billion at December 31, 2025, an increase of $83.2 million, or 3.7%, primarily due to an increase in cash and cash equivalents, an increase in net loan receivable. - Cash and cash equivalents totaled $168.7 million at September 30, 2026, as compared to $156.9 million at December 31, 2025. The increase in cash and cash equivalents was primarily due to an increase in brokered deposits, FHLBNY borrowings, and loan related cash receipts, partially offset by an increase in net loans receivable. - The investment securities portfolio increased to $13.8 million at September 30, 2026, from $13.5 million at December 31, 2025, an increase of $0.3 million, or 2.2%, primarily due to the purchase of a $1.5 million security classified as held to maturity, offset by pay downs of securities. - Gross loans increased $60.9 million or 3.0%, to $2.10 billion at September 30, 2026, compared to gross loans of $2.04 billion at December 31, 2025. - Nonperforming loans at September 30, 2026 decreased to $5.8 million, or 0.28% of total loans, a decrease of $5.0 million, or 46.2%, from $10.8 million of nonperforming loans at December 31, 2025. OREO at September 30, 2026 was $7.2 million, an increase of $4.4 million from December 31, 2025. Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.56% and 0.61% of total assets at September 30, 2026 and December 31, 2025, respectively. Loans past due 30 to 89 days were $2.4 million at September 30, 2026, a decrease of $1.1 million from December 31, 2025. - The allowance for credit losses was $35.4 million at September 30, 2026, as compared to $34.6 million at December 31, 2025. The ratio of the allowance for credit losses to total loans was 1.69% at September 30, 2026, and 1.70% at December 31, 2025. The ratio of allowance for credit losses to non-performing loans was 610.3% at September 30, 2026, compared to 321.0%, at December 31, 2025. - Total deposits were $1.78 billion at September 30, 2026, an increase of $18.1 million or 1.0%, compared to December 31, 2025. The increase in deposits was primarily driven by an increase in brokered deposits of $36.9 million, partially offset by a decrease in interest-bearing deposits of $16.8 million, and a decrease in non-interest-bearing deposits of $2.0 million. - Total borrowings increased $35.0 million during the nine months ended September 30, 2026, to $178.4 million at September 30, 2026, from $143.4 million at December 31, 2025, due to an increase in outstanding FHLBNY borrowings. - Total equity increased to $356.1 million at September 30, 2026, up from $324.5 million at December 31, 2025, an increase of $31.6 million, or 9.7%, primarily due to the retention of earnings, partially offset by the payment of $6.9 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: "Parke Bank continued its strong financial performance during the first nine months of 2026, delivering record earnings and maintaining excellent operating efficiency despite a challenging and evolving economic environment. For the nine months ended September 30, 2026, net income increased 35.9% to $36.2 million, compared to the same period in 2025. Earnings per common share were $3.09 basic and $3.04 diluted. This performance was driven by continued loan growth, disciplined balance sheet management, and an expanding net interest margin." "Our loan portfolio increased by approximately $61 million since year-end 2025, while net interest margin improved to 4.15%, compared to 3.49% at December 31, 2025. These results contributed to strong profitability metrics, including a 2.16% return on average assets (ROAA) and a 14.15% return on average equity (ROAE). Equally important, we maintained our commitment to expense discipline. Our efficiency ratio improved to 29.50% from 35.68% at year-end 2025, reflecting our continued focus on controlling costs while supporting growth and delivering value to shareholders." "During the quarter, the Federal Reserve increased interest rates by 25 basis points and indicated that additional rate increases remain possible as inflationary pressures persist. Geopolitical uncertainties and ongoing volatility in global energy markets continue to create challenges for businesses and consumers. Nevertheless, Parke Bank remains well positioned with strong capital, sound liquidity, and a disciplined approach to risk management." "We are also proud to have once again been named to Piper Sandler's Bank & Thrift Sm-All Stars Class of 2026, a recognition awarded to high-performing community banks based on measures including growth, profitability, asset quality, and capital strength." "As we move through the remainder of 2026, we remain focused on serving our customers, maintaining strong credit quality, prudently managing liquidity, and creating long-term value for our shareholders." 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) Financial Supplement: Table 1: Condensed Consolidated Balance Sheets (Unaudited) Parke Bancorp, Inc. and SubsidiariesCondensed Consolidated Balance Sheets | | September 30, | | | December 31, | | | 2026 | | | 2025 | | | (Dollars in thousands) | Assets | | | | | | | | Cash and cash equivalents | | $ | 168,657 | | | $ | 156,863 | Investment securities | | | 13,826 | | | | 13,523 | Loans, net of unearned income | | | 2,096,082 | | | | 2,035,227 | Less: Allowance for credit losses | | | (35,438) | | | | (34,649) | Net loans | | | 2,060,644 | | | | 2,000,578 | Premises and equipment, net | | | 5,450 | | | | 5,506 | Bank owned life insurance (BOLI) | | | 36,045 | | | | 35,320 | Other assets | | | 47,976 | | | | 37,646 | Total assets | | $ | 2,332,598 | | | $ | 2,249,436 | | | | | | | | | Liabilities and Equity | | | | | | | | | | | | | | | | Non-interest bearing deposits | | $ | 194,556 | | | $ | 196,506 | Interest bearing deposits | | | 1,330,004 | | | | 1,346,834 | Brokered Deposits | | | 252,235 | | | | 215,329 | FHLBNY borrowings | | | 165,000 | | | | 130,000 | Subordinated debentures | | | 13,403 | | | | 13,403 | Other liabilities | | | 21,263 | | | | 22,846 | Total liabilities | | | 1,976,461 | | | | 1,924,918 | | | | | | | | | Total shareholders' equity | | | 356,137 | | | | 324,518 | | | | | | | | | Total liabilities and equity | | $ | 2,332,598 | | | $ | 2,249,436 | Table 2: Consolidated Income Statements (Unaudited) Parke Bancorp, Inc. and SubsidiariesConsolidated Income Statement | | For the Three Months Ended | | | For the Nine Months Ended | | | September 30, | | | September 30, | | | 2026 | | | 2025 | | | 2026 | | | 2025 | Interest income: | | | | | | | | | | | | | | | | Interest and fees on loans | | $ | 37,036 | | | $ | 34,910 | | | $ | 109,884 | | | $ | 99,142 | Interest and dividends on investments | | | 259 | | | | 218 | | | | 718 | | | | 738 | Interest on deposits with banks | | | 1,374 | | | | 1,381 | | | | 3,458 | | | | 5,499 | Total interest income | | | 38,669 | | | | 36,509 | | | | 114,060 | | | | 105,379 | Interest expense: | | | | | | | | | | | | | | | | Interest on deposits | | | 13,951 | | | | 15,385 | | | | 41,116 | | | | 45,698 | Interest on borrowings | | | 1,691 | | | | 960 | | | | 4,776 | | | | 5,039 | Total interest expense | | | 15,642 | | | | 16,345 | | | | 45,892 | | | | 50,737 | Net interest income | | | 23,027 | | | | 20,164 | | | | 68,168 | | | | 54,642 | Provision for credit losses | | | 968 | | | | 364 | | | | 1,846 | | | | 1,938 | Net interest income after provision for credit losses | | | 22,059 | | | | 19,800 | | | | 66,322 | | | | 52,704 | Non-interest income | | | | | | | | | | | | | | | | Service fees on deposit accounts | | | 268 | | | | 305 | | | | 834 | | | | 925 | Other loan fees | | | 265 | | | | 188 | | | | 594 | | | | 510 | Bank owned life insurance income | | | 255 | | | | 173 | | | | 725 | | | | 507 | Other | | | 183 | | | | 184 | | | | 548 | | | | 546 | Total non-interest income | | | 971 | | | | 850 | | | | 2,701 | | | | 2,488 | Non-interest expense | | | | | | | | | | | | | | | | Compensation and benefits | | | 3,531 | | | | 3,318 | | | | 10,796 | | | | 9,873 | Professional services | | | (86) | | | | 890 | | | | 1,192 | | | | 2,255 | Occupancy and equipment | | | 773 | | | | 688 | | | | 2,264 | | | | 2,052 | Data processing | | | 376 | | | | 429 | | | | 964 | | | | 1,274 | FDIC insurance and other assessments | | | 380 | | | | 356 | | | | 1,122 | | | | 1,090 | OREO expense | | | 419 | | | | 92 | | | | 550 | | | | 319 | Other operating expense | | | 1,381 | | | | 1,391 | | | | 4,022 | | | | 3,520 | Total non-interest expense | | | 6,774 | | | | 7,164 | | | | 20,910 | | | | 20,383 | Income before income tax expense | | | 16,256 | | | | 13,486 | | | | 48,113 | | | | 34,809 | Income tax expense | | | 4,087 | | | | 2,856 | | | | 11,860 | | | | 8,118 | Net income attributable to Company | | | 12,169 | | | | 10,630 | | | | 36,253 | | | | 26,691 | Less: Preferred stock dividend | | | (5) | | | | (5) | | | | (15) | | | | (15) | Net income available to common shareholders | | $ | 12,164 | | | $ | 10,625 | | | $ | 36,238 | | | $ | 26,676 | Earnings per common share | | | | | | | | | | | | | | | | Basic | | $ | 1.04 | | | $ | 0.90 | | | $ | 3.09 | | | $ | 2.26 | Diluted | | $ | 1.02 | | | $ | 0.89 | | | $ | 3.04 | | | $ | 2.23 | Weighted average common shares outstanding | | | | | | | | | | | | | | | | Basic | | | 11,739,484 | | | | 11,773,473 | | | | 11,723,904 | | | | 11,816,577 | Diluted | | | 11,938,476 | | | | 11,958,108 | | | | 11,926,159 | | | | 11,989,947 | Table 3: Operating Ratios (unaudited) | | Three months ended | | | Nine Months Ended | | | September 30, | | | September 30, | | | 2026 | | | 2025 | | | 2026 | | | 2025 | Return on average assets | | | 2.12 | % | | | 1.99 | % | | | 2.16 | % | | | 1.68 | % Return on average common equity | | | 13.67 | % | | | 13.40 | % | | | 14.15 | % | | | 11.51 | % Interest rate spread | | | 3.26 | % | | | 2.89 | % | | | 3.32 | % | | | 2.54 | % Net interest margin | | | 4.10 | % | | | 3.83 | % | | | 4.15 | % | | | 3.49 | % Efficiency ratio* | | | 28.23 | % | | | 34.09 | % | | | 29.50 | % | | | 35.68 | % * Efficiency ratio is calculated using non-interest expense divided by the sum of net interest income and non-interest income. Table 4: Asset Quality Data (unaudited) | | September 30, | | | December 31, | | | 2026 | | | 2025 | | | (Amounts in thousands except ratio data) | Allowance for credit losses on loans | | $ | 35,438 | | | $ | 34,649 | Allowance for credit losses to total loans | | | 1.69 | % | | | 1.70 | % Allowance for credit losses to non-accrual loans | | | 610.30 | % | | | 321.00 | % Non-accrual loans | | $ | 5,807 | | | $ | 10,793 | OREO | | $ | 7,242 | | | $ | 2,862 | View original content:https://www.prnewswire.com/news-releases/parke-bancorp-inc-announces-third-quarter-2026-earnings-302914228.html

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