Financial Performance - Net income available to common shareholders for Q3 2024 increased by 634.1% to $7.5 million compared to $1.0 million in Q3 2023[98] - Net income for the nine months ended September 30, 2024, decreased by 0.8% to $20.1 million, primarily due to a $5.6 million decrease in net interest income[105] - Net interest income for Q3 2024 decreased by 6.1% to $14.7 million, primarily due to a $4.0 million increase in interest expense[99] - Net interest income for the nine months ended September 30, 2024, decreased by 11.5% to $43.1 million, with interest expense increasing by 44.5%[106] - Non-interest income for Q3 2024 decreased by 50% to $0.9 million, primarily due to a $0.7 million decrease in deposit service fees[102] - Non-interest income for the nine months ended September 30, 2024, decreased by 39.3% to $3.2 million, primarily due to a $2.1 million decrease in deposit service fees[108] - Non-interest expense for Q3 2024 decreased by 59.8% to $6.4 million, primarily due to a non-recurring $9.5 million loss in Q3 2023[103] - The net interest margin for the nine months ended September 30, 2024, was 2.97%, compared to 3.21% in the same period of 2023[112][114] Balance Sheet and Asset Management - Total assets as of September 30, 2024, were $2.07 billion, with total equity of $296.5 million[97] - Total assets increased by $41.9 million (2.1%) to $2.07 billion at September 30, 2024, driven by growth in loans receivable and FHLBNY restricted stock[115] - Loans increased by $52.6 million (2.9%) to $1.84 billion, primarily due to growth in construction, multi-family, and CRE owner portfolios[115][118] - Loans receivable increased by $52.6 million (2.9%) to $1.84 billion at September 30, 2024, driven by growth in construction, CRE-owner occupied, and Residential - Multifamily loan portfolios[126] - Cash and cash equivalents decreased by $7.9 million (4.4%) to $172.4 million, primarily due to loan growth[115][118] - Cash and cash equivalents decreased by $7.9 million (4.4%) to $172.4 million at September 30, 2024, primarily due to an increase in loans[119] - Investment securities declined by $1.1 million (6.8%) to $15.3 million, reflecting a reduction in the portfolio[115][118] - Total investment securities decreased by $1.1 million (6.8%) to $15.3 million at September 30, 2024, attributed to normal pay downs[120] Liabilities and Equity - Total liabilities rose by $29.8 million (1.7%) to $1.77 billion, mainly due to a $6.1 million increase in deposits and a $20.1 million increase in borrowings[116][118] - Total equity grew by $12.1 million (4.3%) to $296.5 million, driven by retained earnings, partially offset by $6.4 million in cash dividends and $2.0 million in stock repurchases[117][118] - Total equity increased by $12.1 million (4.3%) to $296.5 million at September 30, 2024, primarily due to the retention of earnings[130] - Interest-bearing deposits increased by $85.8 million (6.9%) to $1.33 billion, with brokered certificates of deposit growing by $58.5 million (49.2%)[112][116] - FHLBNY borrowings rose by $20.0 million (16.0%) to $145.0 million, contributing to the increase in total liabilities[116][118] - Total deposits increased by $6.1 million (0.4%) to $1.56 billion at September 30, 2024, primarily due to increases in brokered time deposits and time deposits[127] - Total borrowings increased by $20.0 million to $188.3 million at September 30, 2024, due to an increase in FHLBNY advances[129] Credit Losses and Allowances - Provision for credit losses in Q3 2024 was a recovery of $0.1 million, compared to a provision of $0.3 million in Q3 2023[100] - Provision for credit losses for the nine months ended September 30, 2024, was $0.5 million, compared to a recovery of $1.6 million in the same period of 2023[107] - The company's allowance for credit losses is based on periodic evaluations of loan and lease portfolios, broken down by vintage, and includes both specific and general components[143] - The specific allowance is calculated for loans and leases that do not share similar risk characteristics, including collateral-dependent loans[143] - The general allowance covers loans and leases with expected credit losses that are not yet individually identifiable[143] - The allowance calculation process is influenced by loan portfolio performance, borrower financial strength, industry outlook, and economic conditions[144] Cash Flow Activities - Cash provided by operating activities increased to $26.6 million in the nine months ended September 30, 2024, compared to $14.0 million in the prior year[135] - Cash used in investing activities increased to $52.3 million in the nine months ended September 30, 2024, primarily due to higher loan origination[136] - Cash provided by financing activities was $17.7 million in the nine months ended September 30, 2024, compared to cash used in financing activities of $21.4 million in the prior year[137] Capital and Share Repurchases - The Company and the Bank were both considered "well capitalized" with Tier 1 leverage ratios of 15.46% and 16.91%, respectively, at September 30, 2024[140] - The company repurchased 100,000 shares of its common stock during the quarter ended September 30, 2024, at an average price of $20.10 per share[152] - The company announced a share repurchase program for up to approximately 5% of its outstanding shares of common stock on August 2, 2024[152] Legal Matters - The company is defending a legal matter involving alleged damages of approximately $1.7 million related to the Absecon Gardens Condominium project[147]

Financial Performance - Net income for Q3 2024 was $7.5 million, a 16.3% increase over Q2 2024[2] - Revenue for Q3 2024 was $33.0 million, a 5.2% increase over Q2 2024[2] - Net income available to common shareholders for the nine months ended September 2024 was $20,098 thousand, slightly down from $20,269 thousand in 2023[17] - Return on average assets for the nine months ended September 2024 was 1.37%, compared to 1.38% in 2023[18] Asset and Loan Growth - Total assets increased to $2.07 billion, up 2.1% from December 31, 2023[2] - Total loans increased to $1.84 billion, up 2.9% from December 31, 2023[2] - Gross loans increased by $52.6 million, or 2.9%, to $1.84 billion at September 30, 2024[10] - Total assets increased to $2,065,409 thousand in 2024 from $2,023,500 thousand in 2023, reflecting growth in net loans and other assets[16] - Net loans grew to $1,807,611 thousand in 2024 from $1,755,210 thousand in 2023, with loans net of unearned income reaching $1,839,929 thousand[16] Non-Interest Income and Expense - Non-interest income decreased by $0.9 million, or 50.9%, to $0.9 million for Q3 2024[3] - Non-interest expense decreased by $9.5 million, or 59.8%, to $6.4 million for Q3 2024[4] - Non-interest income for the nine months ended September 2024 decreased to $3,163 thousand from $5,213 thousand in 2023, primarily due to lower service fees on deposit accounts[17] Credit Quality and Allowances - Nonperforming loans increased to $12.2 million, representing 0.66% of total loans at September 30, 2024[11] - Allowance for credit losses on loans increased to $32,318 thousand in September 2024 from $32,131 thousand in December 2023[19] - Non-accrual loans rose to $12,201 thousand in September 2024 from $7,261 thousand in December 2023[19] Deposits and Equity - Total deposits increased by $6.1 million, or 0.4%, to $1.56 billion at September 30, 2024[12] - Total equity increased by $12.1 million, or 4.3%, to $296.5 million at September 30, 2024[13] Net Interest Income and Margin - Net interest income for the nine months ended September 2024 was $43,089 thousand, down from $48,699 thousand in the same period in 2023[17] - Net interest margin for the nine months ended September 2024 was 2.99%, down from 3.40% in 2023[18] Efficiency and Cost Management - Efficiency ratio improved to 41.37% for the nine months ended September 2024 from 53.76% in 2023, indicating better cost management[18]

Financial Performance - Net income available to common shareholders for Q2 2024 decreased by 20.6% to $6.5 million compared to $8.1 million in Q2 2023[83] - Net income for the six months ended June 30, 2024, decreased by 34.6% to $12.6 million, driven by higher interest expense and credit loss provisions[87] - Net interest income for Q2 2024 decreased by 9.8% to $14.3 million, primarily due to a $4.5 million increase in interest expense[84] - Net interest income for the six months ended June 30, 2024, decreased by 14.1% to $28.4 million, despite a $6.4 million increase in interest income[88] - Net interest income for the six months ended June 30, 2024, was $28.4 million, compared to $33.0 million in the same period in 2023, reflecting a decline in interest rate spread from 2.66% to 1.92%[95] Interest Income and Expense - Interest income increased by 10.7% to $2.9 million in Q2 2024, driven by higher loan balances and market interest rates[84] - Interest-bearing deposits yielded 4.24% in 2024, up from 2.82% in 2023, driven by higher rates on money market deposits (4.88% vs. 3.63%) and brokered certificates of deposit (5.49% vs. 4.74%)[95] - Total interest-earning assets yielded 6.31% in 2024, up from 5.64% in 2023, driven by higher yields on loans (6.39% vs. 5.74%) and investment securities (4.29% vs. 3.28%)[95] Non-Interest Income and Expense - Non-interest income decreased by $0.4 million to $1.2 million in Q2 2024, mainly due to a $0.6 million decrease in deposit account service fees[85] - Non-interest income for the six months ended June 30, 2024, decreased by 33.0% to $2.3 million, primarily due to a $1.4 million decrease in deposit account service fees[90] - Non-interest expense decreased by 2.1% to $6.2 million in Q2 2024, primarily due to reductions in other operating and data processing expenses[86] Assets and Liabilities - Total assets as of June 30, 2024, were $2.03 billion, with total equity of $292.8 million[82] - Total assets increased by $3.6 million (0.2%) to $2.03 billion at June 30, 2024, driven by a $17.8 million increase in loans and a $2.3 million increase in restricted stock, partially offset by a $12.7 million decrease in cash and cash equivalents[96] - Loans receivable increased by $17.8 million (1.0%) to $1.805 billion, primarily due to growth in the construction and multi-family portfolios, partially offset by a decrease in the CRE non-owner occupied portfolio[96] - Loans receivable increased to $1.81 billion at June 30, 2024, from $1.79 billion at December 31, 2023, an increase of $17.8 million, or 1.0%[103] - Total deposits decreased by $56.4 million (3.6%) to $1.50 billion, driven by declines in non-interest demand deposits ($33.4 million), savings deposits ($16.4 million), and time deposits ($44.7 million), partially offset by a $42.8 million increase in money market deposits[97] - Total deposits decreased to $1.50 billion at June 30, 2024, from $1.55 billion at December 31, 2023, a decrease of $56.4 million, or 3.6%[104] - FHLBNY borrowings increased by $50.0 million (40.0%) to $218.2 million, contributing to the overall increase in total liabilities[97] - Total borrowings increased to $218.2 million at June 30, 2024, from $168.1 million at December 31, 2023, due to a $50.0 million increase in FHLBNY advances[106] - Cash and cash equivalents decreased by $12.7 million (7.0%) to $167.7 million, primarily due to increased loan activity and decreased deposits, partially offset by higher borrowings[99] - Total investment securities decreased to $15.5 million at June 30, 2024, from $16.4 million at December 31, 2023, a decrease of $0.9 million or 5.4%[100] Equity and Capital - Total equity increased by $8.5 million (3.0%) to $292.8 million, primarily due to retained earnings, partially offset by $4.3 million in cash dividends[98] - Total equity increased to $292.8 million at June 30, 2024, from $284.3 million at December 31, 2023, an increase of $8.5 million, or 3.0%[107] - The Company and the Bank were both considered "well capitalized" under regulatory capital requirements at June 30, 2024[115] - Tier 1 leverage ratio for the company is 15.86% with an amount of $306,283 thousand, compared to Parke Bank's 17.35% with $334,969 thousand[118] Credit Losses and Provisions - Provision for credit losses for the six months ended June 30, 2024, was $0.7 million, compared to a recovery of $1.9 million in the same period of 2023[89] - The allowance for credit losses increased by $294,000 (0.9%) to $32.4 million, reflecting adjustments in loan portfolios[98] - The company's allowance for credit losses is influenced by loan portfolio performance, borrower financial strength, industry outlook, and economic conditions[119] Cash Flow - Cash provided by operating activities was $17.2 million in the six months ended June 30, 2024, compared to $14.7 million for the same period in the prior year[110] - Cash used in investing activities was $19.3 million in the six months ended June 30, 2024, compared to $38.5 million in the same period last year[111] - Cash used in financing activities was $10.6 million in the six months ended June 30, 2024, compared to $20.9 million in the same period last year[111] Legal and Regulatory Matters - The company faces a legal claim of approximately $1.7 million related to alleged construction damages in the Absecon Gardens Condominium project[122] - The company is defending against a lawsuit involving a $1.4 million loan default and counterclaims for rent from Mori Restaurant LLC[123] - The company denies liability in the Mori Restaurant LLC lawsuit and intends to vigorously defend against the claims[124] Internal Controls and Procedures - The company's disclosure controls and procedures are effective, as confirmed by the CEO and CFO[120] - No material changes in the company's internal control over financial reporting occurred during the last fiscal quarter[121] Loan Commitments - The Company had outstanding loan commitments of $114.8 million at June 30, 2024[110]

Stock Repurchase Plan - The company's Board of Directors approved a plan to repurchase up to 5% of its common stock over the next twelve months, subject to completion or extension [1] - Repurchases will be conducted in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, with specific price, market volume, and timing constraints [1][2] Management's Perspective - The stock repurchase program is a key component of the company's capital management strategies [2] - Management believes the company's stock is an attractive investment at current prices and that repurchasing shares will enhance shareholder value [2] Company Overview - Parke Bancorp, Inc was incorporated in January 2005, while Parke Bank commenced operations in January 1999 [2] - The company maintains principal offices at 601 Delsea Drive, Washington Township, New Jersey [2] - Parke Bank operates through multiple branch offices in New Jersey and Pennsylvania, focusing on personal and business financial services for individuals and small businesses [2] - The bank's deposits are insured by the FDIC up to the maximum legal amount [2] - Parke Bancorp's common stock trades on the NASDAQ Capital Market under the symbol "PKBK" [2]

Net Income and Profitability - Net income available to common shareholders decreased by 20.6% to $6.5 million for Q2 2024 compared to $8.1 million in Q2 2023[2] - Net income attributable to the company decreased to $6.455 million for the three months ended June 30, 2024, from $8.130 million in the same period in 2023[34] - Return on average assets declined to 1.34% for the three months ended June 30, 2024, from 1.67% in the same period in 2023[35] Interest Income and Expense - Interest income increased by 11.5% to $28.7 million for Q2 2024 compared to the same period in 2023[18] - Interest expense increased by 39.3% to $15.9 million for Q2 2024 compared to the same period in 2023[6] - Net interest income decreased by $4.6 million (14.1%) to $28.4 million for the six months ended June 30, 2024, compared to $33.0 million for the same period in 2023[38] - Net interest margin decreased to 3.03% for the three months ended June 30, 2024, from 3.34% in the same period in 2023[35] Non-Interest Income - Non-interest income decreased by 24.7% to $1.2 million for Q2 2024 compared to $1.6 million in Q2 2023[3] - Non-interest income decreased by $0.4 million (24.7%) for the three months ended June 30, 2024, primarily due to a $0.6 million decrease in service fees on deposit accounts[42] Loans and Credit Quality - Gross loans increased by 1.0% to $1.8 billion at June 30, 2024[22] - Nonperforming loans decreased by 3.8% to $7.0 million at June 30, 2024, representing 0.39% of total loans[10] - Non-accrual loans decreased to $6.983 million at June 30, 2024, from $7.261 million at December 31, 2023[44] - The provision for credit losses increased by 136.2% to $0.7 million for the six months ended June 30, 2024[5] - Provision for credit losses remained flat at $0.5 million for the three months ended June 30, 2024, compared to the same period in 2023[41] - The allowance for credit losses to non-performing loans ratio increased to 464.3% at June 30, 2024, from 442.5% at December 31, 2023[30] - Allowance for credit losses to total loans remained stable at 1.80% at June 30, 2024, compared to December 31, 2023[44] Deposits and Assets - Total deposits decreased by 3.6% to $1.50 billion at June 30, 2024, from $1.55 billion at December 31, 2023[23] - Total assets increased by $3.6 million (0.18%) to $2.03 billion at June 30, 2024, from $2.02 billion at December 31, 2023, driven by an increase in net loans[39] Equity and Efficiency - Total equity increased by 3.0% to $292.8 million at June 30, 2024, from $284.3 million at December 31, 2023[11] - Efficiency ratio increased to 40.19% for the three months ended June 30, 2024, from 36.49% in the same period in 2023[35]

Company Overview - Parke Bancorp, Inc was incorporated in January 2005 while Parke Bank commenced operations in January 1999 [1] - The company maintains its principal offices at 601 Delsea Drive, Washington Township, New Jersey [1] - Parke Bank operates through multiple branch offices in New Jersey and Pennsylvania including Northfield, Washington Township, Galloway Township, Collingswood, and two locations in Philadelphia [1] - The bank focuses on providing personal and business financial services to individuals and small-sized businesses primarily in Gloucester, Atlantic, and Cape May counties in New Jersey and Philadelphia and surrounding counties in Pennsylvania [1] - Parke Bank's deposits are insured by the FDIC up to the maximum legal amount [1] - Parke Bancorp's common stock is traded on the NASDAQ Capital Market under the symbol "PKBK" [1] Dividend Announcement - Parke Bancorp declared a $0 18 per share cash dividend payable on July 19, 2024 to stockholders of record as of July 5, 2024 [2] - The Board anticipates paying cash dividends on a quarterly basis subject to determination and declaration by the Board of Directors [4] - Future dividends may be reduced or eliminated based on the company's financial condition and applicable legal and regulatory restrictions [4]

Financial Performance - For Q1 2024, net income available to common shareholders decreased by $5.0 million, or 44.8%, to $6.1 million compared to $11.1 million in Q1 2023[92]. - Net interest income for Q1 2024 was $14.1 million, a decrease of $3.0 million, or 18.1%, from $17.1 million in Q1 2023, primarily due to a $6.5 million increase in interest expense[94]. - Non-interest income decreased by $0.7 million to $1.1 million in Q1 2024, primarily due to a decrease in service fees on deposit accounts[96]. - Non-interest expense decreased by $0.2 million, or 3.4%, to $6.5 million in Q1 2024, mainly due to lower compensation and benefits[97]. - Income tax expense for Q1 2024 was $2.2 million on income before taxes of $8.4 million, resulting in an effective tax rate of 26.6%[98]. - The Company reported net income of $6.2 million for the period, net of common and preferred stock dividends of $2.2 million[126]. Asset and Liability Management - Total assets as of March 31, 2024, were $2.01 billion, with total equity of $288.4 million[91]. - Total assets decreased by $14.4 million, or 0.7%, to $2.01 billion as of March 31, 2024, primarily due to a decrease in cash and cash equivalents[104]. - Total liabilities decreased by $18.5 million, or 1.1%, to $1.72 billion, mainly due to a $30 million decrease in borrowings[105]. - Total deposits increased by $10.9 million, or 0.7%, to $1.56 billion, driven by an increase in money market balances[115]. - Cash and cash equivalents decreased by $9.3 million, or 5.1%, to $171.1 million, primarily due to repayment of borrowings[107]. - Total borrowings decreased to $138.2 million at March 31, 2024, from $168.1 million at December 31, 2023, a decrease of $30.0 million in FHLBNY advances[117]. Loan Portfolio - Loans receivable slightly decreased to $1.786 billion from $1.787 billion, with a notable decrease in construction and commercial non-owner occupied loans[114]. - The residential multifamily loan portfolio increased by 24.7% compared to the previous quarter[114]. - Total outstanding loan commitments were $112.8 million at March 31, 2024, with funding requirements expected to be met through normal deposit growth[122]. Cash Flow - Cash provided by operating activities was $8.4 million for the three months ended March 31, 2024, compared to $10.5 million for the same period in 2023[123]. - Cash provided by investing activities was $3.6 million for the three months ended March 31, 2024, compared to cash used of $14.4 million in the same period last year[124]. - Cash used in financing activities decreased to $21.2 million for the three months ended March 31, 2024, from $32.3 million in the same period in 2023[125]. Capital and Regulatory Compliance - The Company and the Bank were both considered "well capitalized" under capital rules as of March 31, 2024[128]. - Total equity increased to $288.4 million at March 31, 2024, from $284.3 million at December 31, 2023, an increase of $4.1 million, or 1.4%[118]. - Estimated uninsured deposits decreased by $21.5 million, or 3.5%, to $601.4 million[116]. - Cash position was $171.1 million at March 31, 2024, with liquidity primarily supported by core deposits and interest-bearing accounts[119]. Interest Rate Environment - The Federal Reserve has raised the Fed Funds rate by 525 basis points since March 2022, impacting interest expenses significantly[83]. - The interest rate spread decreased to 1.90% from 2.87% year-over-year[102]. - Interest income increased by $3.5 million, or 13.3%, in Q1 2024, driven by higher loan balances and market interest rates[94].

Financial Performance - Net income for Q1 2024 was $6.1 million, a decrease of $5.0 million or 44.8% compared to Q1 2023[2] - Net income available to common shareholders declined to $6,145 thousand in Q1 2024 from $11,123 thousand in Q1 2023, with diluted earnings per share dropping to $0.51 from $0.92[20] - Return on average assets decreased to 1.27% in Q1 2024 from 2.31% in Q1 2023, indicating lower profitability[22] - Return on average common equity fell to 8.60% in Q1 2024 from 16.65% in Q1 2023, reflecting reduced shareholder returns[22] Interest Income and Expenses - Net interest income decreased by 18.0% to $14.1 million for Q1 2024 compared to Q1 2023[2] - Total interest income increased to $29,477 thousand in Q1 2024 from $26,024 thousand in Q1 2023, reflecting growth in interest and fees on loans[20] - Net interest income decreased to $14,054 thousand in Q1 2024 from $17,149 thousand in Q1 2023, primarily due to higher interest expenses[20] - Net interest margin declined to 3.21% in Q1 2024 from 3.65% in Q1 2023, signaling tighter interest rate spreads[22] Asset and Loan Management - Total assets decreased by 0.7% to $2.01 billion at March 31, 2024, compared to December 31, 2023[1] - Total loans decreased by 0.1% to $1.79 billion at March 31, 2024, compared to December 31, 2023[1] - Nonperforming loans decreased by 3.8% to $7.0 million at March 31, 2024, representing 0.39% of total loans[10] - Non-accrual loans decreased to $6,988 thousand in Q1 2024 from $7,261 thousand in Q4 2023, with the allowance for credit losses to non-accrual loans ratio improving to 456.75%[23] Credit Losses and Allowances - Provision for credit losses was $0.2 million for Q1 2024, compared to a recovery of $2.4 million for Q1 2023[6] - The allowance for credit losses to total loans ratio was 1.79% at March 31, 2024, compared to 1.80% at December 31, 2023[10] - Allowance for credit losses on loans slightly decreased to $31,918 thousand in Q1 2024 from $32,131 thousand in Q4 2023, with the allowance to total loans ratio at 1.79%[23] Deposit Trends - Total deposits increased by 0.7% to $1.56 billion at March 31, 2024, compared to December 31, 2023[1] Non-Interest Income and Expenses - Non-interest income decreased by 40.4% to $1.1 million for Q1 2024 compared to Q1 2023[7] - Non-interest expense decreased by 3.3% to $6.5 million for Q1 2024 compared to Q1 2023[8] - Efficiency ratio worsened to 43.23% in Q1 2024 from 35.71% in Q1 2023, indicating higher operating costs relative to income[22]

Financial Performance - Net income available to common shareholders for 2023 was $28.4 million, a decrease of 32.0% compared to 2022, primarily due to a $11.4 million increase in non-interest expenses[152] - Net interest income decreased by $9.1 million (12.4%) to $64.2 million in 2023, driven by a $34.3 million increase in interest expense, partially offset by a $25.2 million increase in interest income[155] - Non-interest income decreased by $1.7 million (20.2%) to $6.7 million in 2023, primarily due to lower fee income from commercial deposit accounts and other loan fees[166] - Fee income from commercial deposit accounts in the cannabis industry totaled $3.4 million in 2023, down from $4.4 million in 2022[167] - Income tax expense decreased by $5.0 million to $9.2 million in 2023, with an effective tax rate of 24.5%, down from 25.4% in 2022[170] Balance Sheet and Capital - Total assets as of December 31, 2023, were $2.02 billion, with total liabilities of $1.74 billion and total shareholders' equity of $284.3 million[152] - Total assets increased by $38.6 million (1.9%) to $2.02 billion in 2023, driven by a $35.9 million increase in total loans outstanding[171] - Total liabilities increased by $20.3 million (1.2%) to $1.74 billion in 2023, primarily due to a $42.0 million increase in borrowings, partially offset by a $23.2 million decrease in deposits[172] - Total equity increased by $18.3 million (6.9%) to $284.3 million in 2023, primarily due to retained earnings, partially offset by $8.6 million in cash dividends[181] - The risk-based tier 1 capital ratio was 20.8% as of December 31, 2023[152] Loans and Deposits - Loans receivable increased by $35.9 million (2.0%) to $1.79 billion in 2023, driven by increases in residential and commercial loans, partially offset by a $34.8 million decrease in construction loans[176] - Total deposits decreased by $23.2 million (1.5%) to $1.55 billion in 2023, with cannabis-related deposits dropping by $80.6 million to $96.7 million due to increased competition and industry consolidation[179] - Borrowings increased by $42.0 million to $168.1 million in 2023, primarily due to a $41.9 million increase in FHLBNY advances[180] - Unused commitments to extend credit decreased from $159.0 million in 2022 to $93.8 million in 2023[197] - Standby letters of credit remained stable at $1.5 million in both 2022 and 2023[198] Interest and Credit - Interest income on loans increased by $23.2 million (27.9%) to $106.1 million in 2023, driven by higher average outstanding loan balances and market interest rates[155] - Interest expense increased by $34.3 million (242.5%) to $48.5 million in 2023, primarily due to higher market interest rates on deposit accounts and changes in the deposit mix[155] - The provision for credit losses decreased by $3.9 million in 2023, with a recovery of $2.1 million compared to a provision of $1.8 million in 2022[162] - The company's allowance for credit losses is based on periodic evaluations of the loan and lease portfolios, using historical data and qualitative factors[205] - The allowance for credit losses includes a specific allowance for collateral-dependent loans and a general allowance for loans with expected credit losses[206] Cash and Investments - The company's cash position was $180.4 million at the end of 2023, with a $944.4 million line of credit from FHLBNY, of which $125.0 million was outstanding[182][184] - The company's investment securities portfolio classified as available for sale was $7.1 million at the end of 2023, primarily consisting of mortgage-backed securities[185] - Total interest-earning assets as of December 31, 2023, amounted to $1,969,639 thousand, with loans constituting the largest portion at $1,777,414 thousand[193] Risk and Sensitivity - The ratio of rate-sensitive assets to rate-sensitive liabilities was 132.3% as of December 31, 2023[193] - Cumulative interest sensitivity gap to total assets was 23.8% as of December 31, 2023[193] - The company manages credit risk in commitments to lend by limiting total commitments and applying consistent credit standards[195] - Inflation primarily affects non-interest expenses, such as employee compensation and occupancy costs[202] - The company's financial statements are prepared in accordance with GAAP, without adjusting for inflation[200] Dividends and Shareholder Returns - The company returned $8.6 million of capital to common shareholders through dividends in 2023[152] Non-Interest Expenses - Non-interest expense increased by $11.4 million to $35.3 million in 2023, primarily due to a $9.1 million increase in other operating expenses, including a one-time $9.5 million contingent loss related to stolen cash[169]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [☒] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2023 or [☐] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File No. 000-51338 PARKE BANCORP, INC. (Exact name of registrant as specified in its charter) New Jersey 65-1241959 (Sta ...