Financial Performance - Net income available to common shareholders for 2024 was $27.5 million, a decrease of 3.3% from $28.4 million in 2023[151]. - Net income attributable to the company decreased to $27,512 thousand in 2024 from $28,462 thousand in 2023, a decline of 3.3%[221]. - Comprehensive income attributable to the company was $27,579 thousand in 2024, compared to $28,584 thousand in 2023, a decrease of 3.5%[222]. - Earnings per common share (basic) decreased to $2.30 in 2024 from $2.38 in 2023, a decrease of 3.4%[221]. - Diluted earnings per common share also decreased to $2.27 in 2024 from $2.35 in 2023, a decline of 3.4%[279]. Income and Expenses - Net interest income decreased by $5.5 million, or 8.6%, to $58.7 million in 2024, primarily due to an increase in interest expense[152]. - Interest income for 2024 increased to $125.1 million, an increase of 11.0% from $112.7 million in 2023[152]. - Interest expense rose to $66.4 million in 2024, an increase of 36.9% from $48.5 million in 2023[152]. - Non-interest income decreased by $2.4 million to $4.3 million in 2024, primarily due to a decline in fee income related to cannabis business deposits[164]. - Total non-interest expense decreased significantly to $25,984 thousand in 2024 from $35,267 thousand in 2023, a reduction of 26.3%[221]. Assets and Liabilities - Total assets as of December 31, 2024, were $2.14 billion, an increase of 5.9% compared to the previous year[149]. - Total loans outstanding rose by $80.8 million, or 4.5%, to $1.87 billion, driven by a $71.4 million increase in residential multi-family loans and an $18.7 million increase in commercial owner-occupied loans[175]. - Total deposits increased by $78.2 million, or 5.0%, to $1.63 billion, with deposits from the cannabis industry rising to $151.9 million from $96.7 million[170][177]. - Cash and cash equivalents rose by $41.2 million, or 22.8%, to $221.5 million, attributed to increased deposits and borrowings[173]. - Total equity increased by $15.8 million, or 5.5%, to $300.1 million as of December 31, 2024, from $284.3 million in 2023[171][179]. Credit Quality - The provision for credit losses was $0.7 million in 2024, compared to a recovery of $2.1 million in 2023[160]. - The allowance for credit losses increased by $0.4 million to $32.6 million, representing 1.38% of total loans[176]. - Nonperforming loans in the residential - 1 to 4 family segment totaled $2,883,000, with $447,880,000 in total performing loans[303]. - The total past due loans for all categories combined increased to $13,225 thousand in 2024 from $11,144 thousand in 2023, marking an increase of 18.7%[294]. - The charge-offs for the year ended December 31, 2024, were recorded at $(21) thousand, indicating a stable performance compared to previous periods[296]. Shareholder Returns - The company returned $8.6 million to common shareholders through cash dividends and repurchased 200,000 shares at a cost of $4.3 million during the fiscal year[149]. - The company’s cash dividends for 2024 were $8,602 thousand, slightly down from $8,629 thousand in 2023[225]. - The Company paid a total of $8.6 million in common stock cash dividends for both 2024 and 2023, maintaining a quarterly dividend of $0.18 per share[329]. - During 2024, the Company repurchased 200,000 shares of its common stock for $4.3 million at an average price of $21.28 per share, with no repurchases in 2023[331]. Borrowings and Interest Rates - Total borrowings increased by $20.2 million to $188.3 million, primarily due to a $20.0 million increase in FHLBNY advances[178]. - The weighted average interest rate on Federal Home Loan Bank advances was 4.83% for amounts less than one year as of December 31, 2024, compared to 5.61% in 2023[317]. - The total interest expense on deposits increased to $57.31 million in 2024 from $41.26 million in 2023, representing a rise of approximately 38.9%[316]. Investment Securities - Investment securities decreased by $1.6 million, or 9.9%, to $14.8 million, mainly due to pay downs[174]. - The Company’s investment securities included $6.005 million in available-for-sale residential mortgage-backed securities as of December 31, 2024, down from $7.639 million in 2023, reflecting a decrease of approximately 21.4%[285]. - The total held-to-maturity securities amounted to $9.209 million as of December 31, 2024, compared to $9.292 million in 2023, showing a slight decrease of about 0.9%[285]. Off-Balance Sheet Arrangements - The company’s off-balance sheet arrangements include commitments to extend credit and standby letters of credit, primarily designed to meet customer financial needs[193]. - The company believes that off-balance sheet risk is not material to its results of operations or financial condition[197]. - Unused commitments to extend credit were approximately $122.5 million as of December 31, 2024, compared to $93.8 million in the previous year[197].

[Financial Performance Summary](index=1&type=section&id=PARKE%20BANCORP%2C%20INC.%20ANNOUNCES%20FOURTH%20QUARTER%202024%20EARNINGS) A comprehensive overview of Parke Bancorp's financial results for the fourth quarter and full fiscal year 2024 [Q4 2024 Performance](index=1&type=section&id=Q4%202024%20Performance) Parke Bancorp's Q4 2024 net income decreased by 9.5% to $7.4 million, driven by higher credit loss provisions and expenses Q4 2024 vs Q4 2023 Key Financials | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income to Common Shareholders | $7.4 million | $8.2 million | -9.5% | | Diluted EPS | $0.61 | $0.67 | -9.0% | | Net Interest Income | $15.6 million | $15.5 million | +0.7% | - The decrease in net income was primarily attributed to three factors: an increased provision for credit losses, a **23.1%** decrease in non-interest income, and a **9.0%** increase in non-interest expense[2](index=2&type=chunk)[3](index=3&type=chunk) [Full Year 2024 Performance](index=2&type=section&id=Full%20Year%202024%20Performance) Full year 2024 net income decreased by 3.3% to $27.5 million, impacted by lower net interest income and higher credit loss provisions Full Year 2024 vs Full Year 2023 Key Financials | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income to Common Shareholders | $27.5 million | $28.4 million | -3.3% | | Diluted EPS | $2.27 | $2.35 | -3.4% | | Net Interest Income | $58.7 million | $64.2 million | -8.6% | - The primary drivers for the full-year net income decrease were lower net interest income, an increased provision for credit losses, and reduced non-interest income[4](index=4&type=chunk) - A significant factor offsetting the decline was a **$9.3 million** (**26.3%**) decrease in non-interest expense, mainly because 2023's results included a one-time **$9.5 million** contingent loss[9](index=9&type=chunk) [Analysis of Financial Results](index=3&type=section&id=Analysis%20of%20Financial%20Results) Detailed analysis of key financial components including net interest income, credit losses, and non-interest items [Net Interest Income](index=3&type=section&id=Net%20Interest%20Income) Full-year net interest income declined by 8.6% to $58.7 million due to higher interest expenses outpacing income growth - Full-year interest income rose by **$12.4 million**, primarily due to an **$11.8 million** increase in interest and fees on loans from higher average balances and rates[5](index=5&type=chunk) - Full-year interest expense surged by **$17.9 million**, attributed to higher market interest rates and a change in deposit mix, with a reduction in non-interest bearing deposits and an increase in interest-bearing ones[6](index=6&type=chunk) [Provision for Credit Losses](index=3&type=section&id=Provision%20for%20Credit%20Losses) Full-year provision for credit losses increased by $2.8 million to $0.7 million, driven by higher loan balances - For the full year, the provision for credit losses increased by **$2.8 million** compared to the prior year, mainly due to higher outstanding loan balances[7](index=7&type=chunk)[9](index=9&type=chunk) [Non-Interest Income & Expense](index=3&type=section&id=Non-Interest%20Income%20%26%20Expense) Non-interest income decreased by 35.7% to $4.3 million, while non-interest expense fell by 26.3% due to a prior-year one-time loss - Full-year non-interest income decreased by **$2.4 million**, primarily driven by a **$2.5 million** drop in service fees on deposit accounts, which was attributed to a decrease in fees from cannabis-related business accounts[8](index=8&type=chunk)[9](index=9&type=chunk) - Full-year non-interest expense decreased by **$9.3 million**, largely due to the recognition of a one-time **$9.5 million** contingent loss in 2023[9](index=9&type=chunk)[11](index=11&type=chunk) [Income Tax Expense](index=5&type=section&id=Income%20Tax%20Expense) Full-year income tax expense decreased by $0.4 million, with the effective tax rate slightly lower at 24.2% Effective Tax Rate Comparison | Period | 2024 | 2023 | | :--- | :--- | :--- | | Q4 | 23.9% | 26.8% | | Full Year | 24.2% | 24.5% | [Financial Condition (Balance Sheet Analysis)](index=5&type=section&id=December%2031%2C%202024%20discussion%20of%20financial%20condition) An overview of the company's balance sheet, focusing on assets, asset quality, liabilities, and equity [Assets](index=5&type=section&id=Assets) Total assets grew by 5.9% to $2.14 billion, driven by a 4.5% increase in gross loans to $1.87 billion Asset Growth (Year-End 2024 vs 2023) | Metric | Dec 31, 2024 | Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $2.14 billion | $2.02 billion | +5.9% | | Gross Loans | $1.87 billion | $1.79 billion | +4.5% | | Cash & Cash Equivalents | $221.5 million | $180.4 million | +22.8% | - Loan growth was driven by a **$71.5 million** increase in the multi-family portfolio and an **$18.2 million** increase in the CRE owner-occupied portfolio, partially offset by a **$17.9 million** decrease in the construction portfolio[13](index=13&type=chunk) [Asset Quality](index=5&type=section&id=Asset%20Quality) Asset quality deteriorated with nonperforming loans increasing to $11.8 million, though past due loans decreased - Nonperforming loans increased to **$11.8 million** (**0.63%** of total loans) at year-end 2024, up from **$7.3 million** at year-end 2023[13](index=13&type=chunk) Allowance for Credit Losses Ratios | Ratio | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Allowance / Total Loans | 1.74% | 1.80% | | Allowance / Non-performing Loans | 276.5% | 442.5% | - Loans past due 30 to 89 days decreased by **$2.5 million** from December 31, 2023[13](index=13&type=chunk) [Liabilities & Equity](index=5&type=section&id=Liabilities%20%26%20Equity) Total deposits grew by 5.0% to $1.63 billion, and total equity increased by 5.5% to $300.1 million - Total deposits increased by **$78.2 million** (**5.0%**), with growth in brokered time deposits and money market accounts offsetting a **$48.2 million** decrease in non-interest bearing demand deposits[13](index=13&type=chunk) - Deposits from cannabis-related businesses increased by **$55.2 million** to **$151.9 million** at year-end 2024[13](index=13&type=chunk) - Total equity grew by **$15.8 million** to **$300.1 million**, driven by retained earnings, partially offset by **$8.6 million** in cash dividends and **$4.3 million** in common stock repurchases[16](index=16&type=chunk) [CEO Outlook and Commentary](index=7&type=section&id=CEO%20outlook%20and%20commentary) The CEO highlighted strong earnings, tight expense control, and solid asset quality, positioning the bank for cautious growth - The CEO noted that higher interest expenses negatively affected net interest income but was pleased with strong overall earnings in 2024[14](index=14&type=chunk) - The company maintained tight expense controls, improving its efficiency ratio to nearly **41%**, and kept a strong focus on asset quality with a credit loss reserve of **1.74%**[14](index=14&type=chunk) - With total equity exceeding **$300 million**, the bank is positioned to cautiously explore new business opportunities, noting optimism in the business and real estate industries, especially new home construction[14](index=14&type=chunk) [Financial Supplement](index=9&type=section&id=Financial%20Supplement) Supplementary financial tables providing detailed balance sheet, income statement, operating ratios, and asset quality data [Condensed Consolidated Balance Sheets](index=9&type=section&id=Table%201%3A%20Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Snapshot of the company's financial position, detailing assets, liabilities, and equity as of year-end 2024 and 2023 Condensed Consolidated Balance Sheets (in thousands) | | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $221,527 | $180,376 | | Net loans | $1,835,580 | $1,755,208 | | **Total assets** | **$2,142,236** | **$2,023,500** | | **Liabilities and Equity** | | | | Total deposits | $1,631,050 | $1,552,827 | | Total liabilities | $1,842,163 | $1,739,183 | | Total shareholders' equity | $300,073 | $284,317 | | **Total liabilities and shareholders' equity** | **$2,142,236** | **$2,023,500** | [Consolidated Income Statements](index=11&type=section&id=Table%202%3A%20Consolidated%20Income%20Statements%20(Unaudited)) Detailed revenues, expenses, net income, and EPS for Q4 and full year periods ending December 31, 2024 and 2023 Consolidated Income Statements Highlights (in thousands) | | Three Months Ended Dec 31 | Twelve Months Ended Dec 31 | | :--- | :--- | :--- | | | **2024** | **2023** | **2024** | **2023** | | Net interest income | $15,619 | $15,515 | $58,708 | $64,214 | | Provision for (recovery of) credit losses | $182 | $(451) | $728 | $(2,051) | | Total non-interest income | $1,138 | $1,480 | $4,301 | $6,692 | | Total non-interest expense | $6,850 | $6,287 | $25,984 | $35,267 | | Net income available to common shareholders | $7,393 | $8,167 | $27,492 | $28,436 | [Operating Ratios](index=13&type=section&id=Table%203%3A%20Operating%20Ratios) Key performance metrics measuring profitability and efficiency for Q4 and full year periods ending December 31, 2024 and 2023 Key Operating Ratios | | Three Months Ended Dec 31 | Twelve Months Ended Dec 31 | | :--- | :--- | :--- | | | **2024** | **2023** | **2024** | **2023** | | Return on average assets | 1.41% | 1.64% | 1.38% | 1.45% | | Return on average common equity | 9.82% | 11.50% | 9.36% | 10.21% | | Net interest margin | 3.02% | 3.17% | 3.00% | 3.34% | | Efficiency ratio | 40.88% | 36.99% | 41.24% | 48.34% | [Asset Quality Data](index=13&type=section&id=Table%204%3A%20Asset%20Quality%20Data) Data on asset quality, including allowance for credit losses and non-accrual loans, as of year-end 2024 and 2023 Asset Quality Data (in thousands) | | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Allowance for credit losses | $32,573 | $32,132 | | Allowance for credit losses to total loans | 1.74% | 1.80% | | Non-accrual loans | $11,782 | $7,261 |

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]