Financial Performance - Net income available to common shareholders for Q2 2023 decreased by $2.6 million, or 24.3%, to $8.1 million compared to $10.7 million in Q2 2022[120] - For the six months ended June 30, 2023, net income available to common shareholders decreased by $1.6 million, or 7.5%, to $19.2 million[127] - Non-interest income for Q2 2023 was $1.6 million, a decrease of $918.0 thousand, or 36.7%, compared to $2.5 million in Q2 2022[124] - Non-interest income for the six months ended June 30, 2023, was $3.4 million, a decrease of $1.2 million, or 26.4%, compared to $4.6 million for the same period last year[131] - Net interest income for Q2 2023 was $15.9 million, a decrease of $2.1 million, or 11.7%, from $18.0 million in Q2 2022[122] - Net interest income for the six months ended June 30, 2023, was $33.0 million, compared to $35.1 million for the same period in 2022[139] Assets and Liabilities - Total assets as of June 30, 2023, were $1.98 billion, with total equity of $279.1 million[119] - Total assets decreased by $2.4 million, or 0.1%, to $1.98 billion at June 30, 2023, primarily due to a $44.7 million decrease in cash and cash equivalents[141] - Total liabilities decreased by $15.6 million, or 0.9%, to $1.70 billion at June 30, 2023, mainly due to a $129.6 million decrease in total deposits[142] - Total equity increased by $13.1 million to $279.1 million at June 30, 2023, primarily due to retained earnings[143] - Total deposits decreased to $1.45 billion at June 30, 2023, from $1.58 billion at December 31, 2022, a decrease of $129.6 million, or 8.2%[154] - Total borrowings increased to $239.2 million at June 30, 2023, from $126.1 million at December 31, 2022, an increase of 89.5%[154] Income and Expenses - Interest income increased by $6.8 million, or 33.0%, in Q2 2023, primarily due to a $6.3 million increase in interest and fees on loans[122] - Interest expense surged by $8.9 million, or 350.5%, in Q2 2023, driven by rising market interest rates[122] - Non-interest expense increased by $661.0 thousand, or 11.5%, to $6.4 million in Q2 2023[125] - Non-interest expense increased by $1.7 million to $13.1 million for the six months ended June 30, 2023, primarily due to a $1.4 million increase in compensation and benefits[132] - Cash provided by operating activities was $14.7 million for the six months ended June 30, 2023, compared to $21.9 million for the same period in the prior year, a decrease of 33%[162] - Cash used in investing activities decreased to $38.5 million for the six months ended June 30, 2023, from $59.4 million in the same period last year, a decrease of 35.5%[163] Loans and Deposits - Loans increased by $34.6 million at June 30, 2023, primarily due to increases in CRE owner-occupied and residential 1-4 family investment loans[141] - Loans receivable increased to $1.79 billion at June 30, 2023, from $1.75 billion at December 31, 2022, representing an increase of 1.4%[152] - Non-interest bearing demand deposits decreased by $81.6 million, or 23.1%, to $271.0 million at June 30, 2023[155] - Cash and cash equivalents decreased by 24.5% to $137.5 million at June 30, 2023, from $182.2 million at December 31, 2022[145] Taxation - Income tax expense was $5.9 million on income before taxes of $25.2 million for the six months ended June 30, 2023, resulting in an effective tax rate of 23.5%[133] - The effective tax rate improved from 25.4% in 2022 to 23.5% in 2023[133] Legal Matters - The company is involved in a legal matter with potential damages claimed at approximately $1.7 million, currently in early discovery stages[179] - Management believes no material losses are anticipated from various contingent liabilities and legal actions[180] - There are no other material pending legal proceedings beyond ordinary routine litigation[181] Valuation and Fair Value - The fair value of available for sale securities is determined by independent third-party valuation services[175] - The company has a small amount of SBA loans recorded at fair value, representing the face value of the guaranteed portion pending settlement[175] - OREO is recorded at fair value based on independent third-party appraisals, updated every 12 months or sooner if value deterioration is identified[175] - The company maintains tax accruals based on an evaluation of the risks and merits of tax treatment, which is inherently an estimate[176] - Tax positions that meet the recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely to be realized[177] Management and Governance - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective[178] - The Company and the Bank were both considered "well capitalized" as of June 30, 2023[168]

Financial Performance - Net income available to common shareholders for Q1 2023 increased by $1.0 million, or 10.3%, to $11.1 million compared to $10.1 million in Q1 2022[104] - Earnings per share for Q1 2023 were $0.93 per basic share and $0.92 per diluted share, up from $0.85 and $0.83 respectively in Q1 2022[104] - Non-interest income for Q1 2023 was $1.8 million, a decrease of $293.0 thousand compared to $2.1 million in Q1 2022, primarily due to lower service fees[107] - Non-interest expense increased by $1.1 million to $6.8 million in Q1 2023, driven by higher compensation and OREO expenses[108] - Income tax expense for Q1 2023 was $3.4 million, resulting in an effective tax rate of 23.6%, down from 25.2% in Q1 2022[109] - Cash provided by operating activities increased to $10.5 million for the three months ended March 31, 2023, compared to $8.7 million for the same period in 2022[135] Assets and Liabilities - Total assets as of March 31, 2023, were $1.96 billion, with total equity of $273.1 million[103] - Total assets decreased by $20.7 million, or 1.0%, to $1.96 billion as of March 31, 2023, primarily due to a decrease in cash and cash equivalents[115] - Total liabilities decreased by $27.7 million, or 1.6%, to $1.69 billion, mainly driven by a $112.2 million, or 7.1%, decrease in total deposits[116] - Total equity increased by $7.1 million, or 2.7%, to $273.1 million, primarily due to retained earnings[117] - Total deposits decreased to $1.46 billion, a decline of $112.2 million, or 7.1%, attributed to reductions in non-interest bearing demand deposits and savings[126] - Cash and cash equivalents decreased by $36.2 million, or 19.9%, to $146.0 million, primarily due to cash withdrawals from deposits[118] Loans and Credit - Loans receivable increased to $1.76 billion, up $11.2 million from December 31, 2022, with notable increases in commercial real estate owner-occupied and residential 1-4 family portfolios[125] - The allowance for credit losses was $31.5 million at March 31, 2023, down from $31.8 million at December 31, 2022, with a ratio of 1.79% to total loans[150] - Delinquent loans totaled $16.7 million, or 0.9% of total loans, as of March 31, 2023, reflecting a slight increase from the previous quarter[155] - Loans 30 to 89 days delinquent totaled $579.0 thousand, an increase of $354.0 thousand from December 31, 2022[155] - The Company recorded a credit loss recovery of $2.4 million during the three months ended March 31, 2023, compared to zero in the same period of 2022[152] Interest Income and Expenses - Net interest income remained flat at $17.1 million for Q1 2023, with interest income increasing by $6.4 million due to higher loan balances and interest rates[105] - The net interest income for the three months ended March 31, 2023, was $17.149 million, compared to $17.100 million for the same period in 2022[115] - The interest rate spread decreased to 2.87% from 3.15% year-over-year, while the net interest margin increased to 3.65% from 3.41%[115] - The Federal Reserve raised the target federal funds rate by a total of 4.50% in 2022, with an additional increase of 0.25% in Q1 2023, impacting interest income and expenses[95] Legal Matters - The company is involved in a legal matter where damages are claimed to total approximately $1.7 million related to the Absecon Gardens Condominium project, currently in early discovery stages[167] - The company's management believes that no material losses are anticipated from various contingent liabilities and legal actions[168] Regulatory Changes - The company adopted the Current Expected Credit Loss (CECL) model effective January 1, 2023, implementing new and modified controls over financial reporting[166]

Financial Performance - Net income available to common shareholders for 2022 was $41.8 million, representing a 2.6% increase from $40.7 million in 2021[141]. - Net income for 2022 was $41,823,000, a 2.1% increase from $40,975,000 in 2021[250]. - The Company reported net income available to common shareholders of $41.796 million for 2022, an increase from $40.732 million in 2021, resulting in basic earnings per common share of $3.51 for 2022 compared to $3.43 for 2021[291]. - Comprehensive income attributable to the Company rose from $40,542 thousand in 2021 to $41,052 thousand in 2022, an increase of approximately 1.3%[246]. - Earnings per common share (basic) increased from $3.43 in 2021 to $3.51 in 2022, a rise of about 2.3%[245]. Asset and Liability Overview - Total assets as of December 31, 2022, were $1.98 billion, with total liabilities of $1.72 billion and total shareholders' equity of $266.0 million[139]. - Total assets decreased by $151.5 million, or 7.1%, to $1.98 billion at December 31, 2022, primarily due to a $414.4 million decrease in cash and cash equivalents[159]. - Total liabilities decreased by $185.2 million, or 9.7%, to $1.72 billion at December 31, 2022, primarily due to a decrease in total deposits[160]. - Total shareholders' equity increased by $33.7 million, or 14.5%, to $266.0 million at December 31, 2022, mainly due to retained earnings[170]. Loan Portfolio - Total loans outstanding increased by $266.6 million, or 18.0%, to $1.75 billion at December 31, 2022, driven by increases in residential loans, commercial non-owner occupied loans, and construction loans[166]. - The company’s loan portfolio totaled $1.8 billion as of December 31, 2022, with an allowance for loan losses (ALL) of $31.8 million, representing approximately 1.76% of the loan portfolio[221]. - Net loans increased from $1,455,002 thousand in 2021 to $1,719,614 thousand in 2022, representing a growth of about 18.2%[244]. - The total current loans as of December 31, 2022, were $1,734,958 thousand, indicating a healthy loan portfolio[305]. Interest Income and Expenses - Net interest income increased by $4.2 million, or 6.1%, to $73.3 million in 2022 compared to $69.1 million in 2021[142]. - Interest income for 2022 rose to $87.5 million, a 6.6% increase from $82.1 million in 2021, primarily due to higher average outstanding loan balances and interest rates[142]. - Total interest-bearing deposits amounted to $1.18 billion in 2022, with an interest expense of $14.2 million, a 9.3% increase from $13.0 million in 2021[145]. - The net interest margin improved to 3.77% in 2022 from 3.35% in 2021, reflecting better interest income management[145]. Non-Interest Income and Expenses - Non-interest income decreased by $0.4 million to $8.4 million in 2022, primarily due to a decline in fee income from commercial deposit accounts[154]. - Non-interest expense increased by $1.3 million to $23.8 million in 2022, primarily due to a $1.4 million increase in other operating expenses and a $1.1 million increase in compensation and benefits[157]. - Total non-interest income decreased from $8,799 thousand in 2021 to $8,382 thousand in 2022, a decline of approximately 4.7%[245]. - Total non-interest expense increased from $22,503 thousand in 2021 to $23,833 thousand in 2022, an increase of about 5.9%[245]. Capital Adequacy - The risk-based tier 1 capital ratio was 19.3% at December 31, 2022, indicating strong capital adequacy[139]. - The allowance for loan losses increased by $2.0 million to $31.8 million, or 6.7%, at December 31, 2022, due to provisions related to the growing loan portfolio[167]. - The allowance for loan losses increased from $29,845 thousand in 2021 to $31,845 thousand in 2022, reflecting a rise of about 6.7%[244]. Cash Flow and Liquidity - Net cash provided by operating activities rose to $43,450,000 in 2022, compared to $38,641,000 in 2021, reflecting improved operational efficiency[250]. - Total cash and cash equivalents decreased to $182,150,000 at the end of 2022 from $596,553,000 at the end of 2021, indicating liquidity challenges[250]. - The company reported a net decrease in noninterest-bearing deposits of $(201,264,000) in 2022, contrasting with an increase of $124,950,000 in 2021, suggesting shifts in customer deposit behavior[250]. Investment Securities - The Company recognized a net unrealized loss of $1.039 million on investment securities for the year ended December 31, 2022, compared to a loss of $294,000 in 2021[290]. - The total available for sale securities decreased from $13.351 million in 2021 to $9.366 million in 2022, with a significant unrealized loss of $712,000[298]. - The company’s held to maturity securities also saw a decline in fair value from $10.025 million in 2021 to $7.805 million in 2022, with unrealized losses totaling $1.629 million[299]. Risk Management - Management evaluates qualitative risk factors affecting the loan portfolio on a quarterly basis, considering factors such as asset quality, loan volume, and economic trends[221]. - The qualitative adjustments within the ALL were identified as critical audit matters due to their high degree of subjectivity, requiring significant auditor judgment[222]. - The company maintains the ALLL at a level deemed appropriate to absorb estimated probable credit losses incurred in the loan portfolios[306]. Regulatory Compliance and Auditing - The company concluded that its internal control over financial reporting was effective as of December 31, 2022[212]. - The audits were conducted in accordance with PCAOB standards, ensuring reasonable assurance that the financial statements are free of material misstatement[218]. - The Company did not recognize any interest or penalties related to income tax during the years ended December 31, 2022, and 2021, and has no accrual for uncertain tax positions as of December 31, 2022[286].

Financial Performance - Net income available to common shareholders for Q3 2022 increased by $39.0 thousand, or 0.4%, to $10.53 million compared to Q3 2021[111]. - Net income available to common shareholders for the nine months ended September 30, 2022, increased by $683.0 thousand, or 2.2%, to $31.3 million compared to the same period in 2021[118]. - Net interest income for Q3 2022 increased by $1.8 million, or 10.4%, to $19.3 million compared to Q3 2021[112]. - Net interest income for the nine months ended September 30, 2022, increased by $2.0 million, or 3.9%, to $54.4 million compared to the same period in 2021[119]. - Non-interest income for Q3 2022 was $2.0 million, a decrease of $167.0 thousand compared to Q3 2021[114]. - Non-interest income for the nine months ended September 30, 2022, was $6.6 million, an increase of $53.0 thousand, or 0.8%, compared to the same period last year[121]. - Income tax expense for the nine months ended September 30, 2022, was $11.0 million on income before taxes of $42.4 million, resulting in an effective tax rate of 25.9%[123]. Assets and Liabilities - Total assets as of September 30, 2022, were $1.92 billion, with total equity of $257.3 million[110]. - Total assets decreased by $213.2 million, or 10.0%, to $1.92 billion as of September 30, 2022, primarily due to a decrease in cash and cash equivalents[131]. - Total liabilities decreased by $238.2 million, or 12.5%, to $1.67 billion, mainly due to a reduction in total deposits[132]. - Total deposits fell by $233.2 million, or 13.2%, to $1.54 billion, with non-interest demand deposits decreasing by $160.0 million[132]. - Total equity increased by $25.0 million, or 10.7%, to $257.3 million, attributed to retained earnings despite $6.0 million in cash dividends paid[133]. Loans and Credit Quality - Loans increased by $194.5 million, or 13.1%, to $1.68 billion at September 30, 2022, driven by growth in residential and commercial mortgage loans[134]. - Loans receivable increased to $1.68 billion at September 30, 2022, from $1.48 billion at December 31, 2021, representing an increase of 13.1%[143]. - The allowance for loan losses was $31.0 million at September 30, 2022, compared to $29.8 million at December 31, 2021, with a ratio of 1.85% to total loans[172]. - Delinquent loans totaled $17.0 million, representing 1.0% of total loans as of September 30, 2022, an increase of $12.3 million from December 31, 2021[177]. - Loans 90 days or more delinquent and not accruing interest amounted to $16.9 million, or 1.0% of total loans, up from $4.3 million (0.3%) at December 31, 2021[177]. - Impaired loans were reported at $22.5 million as of September 30, 2022, compared to $10.3 million at December 31, 2021[178]. - The ratio of the allowance for loan losses to non-performing assets decreased to 164.5% at September 30, 2022, from 500.6% at December 31, 2021[172]. Cash Flow and Financing Activities - Cash provided by operating activities was $34.3 million for the nine months ended September 30, 2022, compared to $29.5 million for the same period in the prior year, an increase of 16.3%[152]. - Cash used in financing activities was $245.9 million for the nine months ended September 30, 2022, compared to cash provided by financing activities of $47.4 million in the same period last year[154]. - Total borrowings decreased to $116.0 million at September 30, 2022, from $120.9 million at December 31, 2021[145]. Other Financial Metrics - The net interest margin improved to 3.71% for the nine months ended September 30, 2022, compared to 3.41% in the prior year[129]. - Cash and cash equivalents decreased by $403.2 million, or 67.6%, to $193.3 million, primarily due to cash withdrawals and loan funding[135]. - Investment securities decreased by $3.9 million, or 16.8%, to $19.4 million, due to normal pay downs and a decrease in fair market valuation[136]. - The company focuses on lending in residential mortgage, commercial mortgage, and construction loan sectors, primarily serving small to mid-sized businesses and individual consumers[137]. - The Company had outstanding loan commitments of $176.5 million at September 30, 2022[151]. - Unused commitments to extend credit were approximately $176.5 million as of September 30, 2022, compared to $117.7 million at December 31, 2021[185]. - Standby letters of credit remained stable at $1.5 million for both September 30, 2022, and December 31, 2021[186]. - Other Real Estate Owned (OREO) increased slightly to $1.9 million as of September 30, 2022, from $1.8 million a year earlier[180]. - The allowance for loan and lease losses is based on periodic evaluations and is subject to significant estimates and judgments[190]. - The fair value of available-for-sale securities is primarily determined by independent third-party valuation services[193]. - The company has adequate resources to fund all unfunded commitments and meet contractual obligations as they come due[187].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Exact name of registrant as specified in its charter) New Jersey 65-1241959 (State or other jurisdiction of incorporation or organization) [☒] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2022 or [☐] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _________ ...

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: March 31, 2022 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 (State o ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) Parke Bancorp, Inc. is a commercial bank holding company focused on real estate lending and medical-use cannabis banking, operating under BSA compliance consent orders - The company's core lending activities are focused on **commercial real estate, residential real estate, and construction lending**[22](index=22&type=chunk) - In the fourth quarter of 2020, the Bank entered into **Consent Orders** with the FDIC and NJDOBI due to weaknesses in its **Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) compliance program**[82](index=82&type=chunk) Key Financial Metrics as of December 31, 2021 | Metric | Amount (Billions) | | :--- | :--- | | Total Assets | $2.14 | | Total Loans | $1.48 | | Total Deposits | $1.77 | | Total Equity | $0.232 | [Medical-Use Cannabis Related Business](index=7&type=section&id=Medical-Use%20Cannabis%20Related%20Business) The company provides banking services to state-licensed medical-use cannabis businesses, driving significant deposit and fee income growth despite federal illegality risks - The company maintains **stringent due diligence, policies, and monitoring** for its cannabis-related business customers to comply with FinCEN guidelines, but acknowledges the **risk of changes in federal enforcement**[31](index=31&type=chunk)[32](index=32&type=chunk) Cannabis Business Financials (YoY Comparison) | Metric | 2021 (Millions) | 2020 (Millions) | | :--- | :--- | :--- | | Deposit Balances | $375.2 (21.2% of total) | $259.4 (16.3% of total) | | Fee Income | $5.1 | $2.2 | | Loan Balances | $5.4 | $8.0 | [Lending Activities](index=7&type=section&id=Lending%20Activities) Lending is concentrated in residential, commercial real estate, and construction loans, with a **$1.48 billion** portfolio, predominantly floating/variable rate - The bank's legal lending limit to a single borrower was approximately **$45.6 million** at year-end 2021, with the largest single borrower relationship having a balance of **$21.8 million**[51](index=51&type=chunk) Loan Portfolio by Type and Maturity as of Dec 31, 2021 (in thousands) | Loan Category | Due within 1 year (Thousands) | Due 1-5 years (Thousands) | Due 5-15 years (Thousands) | Due after 15 years (Thousands) | Total (Thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial and Industrial | $23,190 | $22,625 | $11,336 | $— | $57,151 | | Construction | $131,416 | $22,196 | $— | $465 | $154,077 | | Commercial Real Estate | $36,481 | $145,496 | $331,483 | $1,662 | $515,122 | | Residential Real Estate | $7,998 | $21,176 | $128,358 | $592,993 | $750,525 | | **Total** | **$199,096** | **$211,629** | **$474,219** | **$599,903** | **$1,484,847** | [Non-Performing and Problem Assets](index=10&type=section&id=Non-Performing%20and%20Problem%20Assets) Asset quality significantly improved in 2021, with total impaired loans decreasing by **54.6%** to **$10.3 million** and non-accrual loans falling to **$4.3 million** - The allowance for loan losses as a percentage of total loans increased slightly to **2.01%** in 2021 from **1.90%** in 2020, while the coverage ratio improved dramatically to **692.78%** from **340.22%**[63](index=63&type=chunk) Asset Quality Indicators (YoY Comparison) | Metric | Dec 31, 2021 (Millions) | Dec 31, 2020 (Millions) | | :--- | :--- | :--- | | Total Impaired Loans | $10.3 | $22.7 | | Non-accrual Loans | $4.3 | $8.7 | | Troubled Debt Restructurings (TDRs) | $6.0 | $13.9 | | Real Estate Owned (OREO) | $1.7 | Not specified in chunk | [Sources of Funds](index=12&type=section&id=Sources%20of%20Funds) Deposits, primarily **$1.77 billion** at year-end 2021, are the main funding source, with non-interest bearing deposits growing to **29.5%** of average total deposits - The company held brokered deposits of **$9.1 million** at the end of 2021, a significant decrease from **$71.1 million** at the end of 2020[69](index=69&type=chunk) Average Deposit Composition and Rates | Deposit Type | 2021 Avg Balance (Millions) | 2021 Avg Rate (%) | 2020 Avg Balance (Millions) | 2020 Avg Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Non-interest bearing | $506.6 | 0.00 | $342.3 | 0.00 | | Interest-bearing | $1,211.5 | 0.81 | $1,173.1 | 1.51 | | **Total Deposits** | **$1,718.1** | | **$1,515.4** | | [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) The report indicates that this section is not applicable - The report states that Item 1A. Risk Factors is **not applicable**[119](index=119&type=chunk) [Unresolved Staff Comments](index=19&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are **no unresolved staff comments**[120](index=120&type=chunk) [Properties](index=20&type=section&id=Item%202.%20Properties) The company operates its main office and several branches in New Jersey and Pennsylvania, with net property and equipment totaling **$6.3 million** - The company's main office is in **Washington Township, NJ**, with **additional branches** in Northfield, Galloway Township, and Collingswood, NJ, as well as two offices in Philadelphia, PA[121](index=121&type=chunk)[122](index=122&type=chunk) - Net property and equipment totaled approximately **$6.3 million** as of December 31, 2021[122](index=122&type=chunk) [Legal Proceedings](index=20&type=section&id=Item%203.%20Legal%20Proceedings) The company reports no material legal proceedings - There are **no legal proceedings** to report[123](index=123&type=chunk) [Mine Safety Disclosures](index=20&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - This item is **not applicable** to the company[123](index=123&type=chunk) Part II [Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=20&type=section&id=Item%205.%20Market%20for%20Common%20Equity%2C%20Related%20stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under 'PKBK', paid **$0.16** quarterly dividends in 2021, and made no common stock repurchases - The company's common stock is listed on the **Nasdaq Capital Market** under the trading symbol **'PKBK'**[123](index=123&type=chunk) - A quarterly cash dividend of **$0.16** per common share was paid in each quarter of 2021, totaling **$7.6 million** for the year[124](index=124&type=chunk) - There were **no repurchases** of the Company's Common Stock during the twelve months ended December 31, 2021[132](index=132&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income increased **43.4%** to **$40.7 million** in 2021, driven by higher net interest income, lower loan loss provision, and increased non-interest income - The increase in net income was primarily driven by **lower interest expense** on deposits, a **lower provision for loan losses**, and **higher fee income**[137](index=137&type=chunk) Key Performance Indicators (2021 vs 2020) | Metric | 2021 (Millions) | 2020 (Millions) | % Change | | :--- | :--- | :--- | :--- | | Net Income (to common) | $40.7 | $28.4 | +43.4% | | Diluted EPS | $3.36 | $2.37 | +41.8% | | Net Interest Income | $69.1 | $62.6 | +10.3% | | Provision for Loan Losses | $0.5 | $7.6 | -93.4% | | Non-interest Income | $8.8 | $4.2 | +110.0% | | Non-interest Expense | $22.5 | $20.3 | +10.8% | [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Net interest income increased to **$69.1 million** in 2021 due to reduced interest expense, while non-interest income doubled to **$8.8 million**, largely from cannabis business fees - Net interest income increased by **$6.5 million (10.3%)** primarily due to an **$8.9 million (40.8%)** decrease in interest expense, which offset a **$2.5 million** decrease in interest income[140](index=140&type=chunk) - Service fees on deposit accounts from the medical-use cannabis industry totaled **$5.1 million** in 2021, up from **$2.2 million** in 2020, accounting for the majority of the growth in non-interest income[150](index=150&type=chunk) - Professional services expense increased by **$1.7 million (87.4%)** as a result of consent order remediation efforts surrounding **BSA operations**[152](index=152&type=chunk) [Financial Condition](index=25&type=section&id=Financial%20Condition) Total assets grew **2.8%** to **$2.14 billion** in 2021, with cash increasing by **$138.0 million**, deposits by **$176.0 million**, and borrowings decreasing by **$146.3 million** - The decrease in the loan portfolio was primarily due to a **$63.4 million** reduction in **Paycheck Protection Program (PPP) loans**[154](index=154&type=chunk) Balance Sheet Changes (Dec 31, 2021 vs Dec 31, 2020) | Account | 2021 Balance (Millions) | 2020 Balance (Millions) | Change (Millions) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $596.6 | $458.6 | +$138.0 | | Loans, net | $1,484.8 | $1,565.8 | -$81.0 | | Total Deposits | $1,768.4 | $1,592.4 | +$176.0 | | Total Borrowings | $120.9 | $267.2 | -$146.3 | | Total Equity | $232.4 | $202.6 | +$29.8 | [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with **$596.6 million** cash and a **$596.5 million** FHLBNY credit line, remaining "well-capitalized" under regulatory standards - The company has a **$596.5 million** line of credit from the FHLBNY, with **$478.3 million** available at December 31, 2021[169](index=169&type=chunk) - The Company and the Bank exceeded all applicable regulatory capital requirements and were considered **'well-capitalized'** as of December 31, 2021[172](index=172&type=chunk) [Financial Statements and Supplementary Data](index=33&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents effective internal controls, an unqualified auditor's opinion, and consolidated financial statements with notes on loan quality, regulatory capital, and cannabis business impact - Management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2021[209](index=209&type=chunk) - The independent auditor, RSM US LLP, issued an **unqualified opinion** on the financial statements[212](index=212&type=chunk) - The auditor identified the **qualitative factor portion of the general reserve component of the allowance for loan losses** as a **critical audit matter** due to the significant judgment and subjectivity involved[222](index=222&type=chunk) [Consolidated Financial Statements](index=36&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show a **43.4%** increase in net income, **2.8%** growth in total assets, and **15.6%** increase in total equity for 2021 Consolidated Income Statement Highlights (in thousands) | Line Item | 2021 (Thousands) | 2020 (Thousands) | | :--- | :--- | :--- | | Net Interest Income | $69,116 | $62,645 | | Provision for loan losses | $500 | $7,646 | | Non-interest Income | $8,799 | $4,183 | | Non-interest Expense | $22,503 | $20,296 | | Net Income Attributable to Company | $40,760 | $28,428 | Consolidated Balance Sheet Highlights (in thousands) | Line Item | Dec 31, 2021 (Thousands) | Dec 31, 2020 (Thousands) | | :--- | :--- | :--- | | Total Assets | $2,136,445 | $2,078,322 | | Net Loans | $1,455,002 | $1,536,109 | | Total Deposits | $1,768,410 | $1,592,443 | | Total Equity | $232,361 | $202,597 | [Notes to Financial Statements](index=41&type=section&id=Notes%20to%20Financial%20Statements) Notes detail loan portfolio quality, confirm the Bank's "well capitalized" status with a **12.82%** CBLR, and highlight the cannabis industry's significant financial contribution - The Bank elected to use the **Community Bank Leverage Ratio (CBLR) framework** and reported a ratio of **12.82%** as of December 31, 2021, well above the **8.5%** minimum requirement for that period[348](index=348&type=chunk)[351](index=351&type=chunk) - Total impaired loans decreased from **$22.7 million** at year-end 2020 to **$10.3 million** at year-end 2021, with a related allowance for these specific loans of **$0.6 million**[293](index=293&type=chunk)[294](index=294&type=chunk) - The company's joint venture, Parke Direct Lending LLC (PDL), was **fully liquidated** in 2021, and all earnings were distributed[234](index=234&type=chunk)[337](index=337&type=chunk) [Controls and Procedures](index=72&type=section&id=Item%209A.%20Controls%20and%20Procedures) Executive officers concluded disclosure controls and internal controls were effective as of December 31, 2021, with no material changes reported in Q4 - The CEO and CFO concluded that the Company's **effective disclosure controls and procedures** were effective as of the end of the period[387](index=387&type=chunk) - There were **no material changes in internal control over financial reporting** during the last quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[390](index=390&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=73&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2022 Proxy Statement - This section **incorporates information by reference** from the Proxy Statement for the 2022 Annual Meeting of Stockholders[394](index=394&type=chunk) [Executive Compensation](index=73&type=section&id=Item%2011.%20Executive%20Compensation) Executive and director compensation information is incorporated by reference from the 2022 Proxy Statement - This section **incorporates information by reference** from the Proxy Statement for the 2022 Annual Meeting of Stockholders[397](index=397&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=73&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the 2022 Proxy Statement, with **532,461** options outstanding at a **$13.34** weighted-average exercise price Equity Compensation Plan Information as of Dec 31, 2021 | Plan Category | Securities to be Issued Upon Exercise (Count) | Weighted-Average Exercise Price ($) | Securities Remaining for Future Issuance (Count) | | :--- | :--- | :--- | :--- | | Approved by security holders | 532,461 | $13.34 | 933,333 | | Not approved by security holders | None | N/A | N/A | | **Total** | **532,461** | **$13.34** | **933,333** | [Certain Relationships and Related Transactions, and Director Independence](index=74&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Related party transactions and director independence information is incorporated by reference from the 2022 Proxy Statement - This section **incorporates information by reference** from the Proxy Statement for the 2022 Annual Meeting of Stockholders[402](index=402&type=chunk) [Principal Accountant Fees and Services](index=74&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Principal accountant fees and services information is incorporated by reference from the 2022 Proxy Statement - This section **incorporates information by reference** from the Proxy Statement for the 2022 Annual Meeting of Stockholders[403](index=403&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=74&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K, including corporate documents and certifications - Lists **all financial statements, schedules, and exhibits** filed with the report, including **consent orders** with the FDIC and NJDOBI, and various corporate governance and compensation documents[405](index=405&type=chunk)[406](index=406&type=chunk) [Form 10-K Summary](index=76&type=section&id=Item%2016.%20Form%2010-K%20Summary) This section is not applicable - This item is **not applicable**[411](index=411&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the quarterly period ended: September 30, 2021 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) [☒] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 New Jersey 65-1241959 (Sta ...

[☐] 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. 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: June 30, 2021 or (Exact name of registrant as specified in its charter) New Jersey 65-1241959 (State or ...

Financial Performance - Net income available to common shareholders for Q1 2021 increased by $2.2 million, or 30.8%, to $9.4 million compared to $7.2 million in Q1 2020[131] - Earnings per share for Q1 2021 were $0.79 per basic common share and $0.78 per diluted common share, up from $0.61 and $0.60 respectively in Q1 2020[131] - Net interest income for Q1 2021 increased by $1.6 million, or 10.6%, to $16.8 million compared to $15.2 million in Q1 2020[132] - Non-interest income for Q1 2021 was $2.2 million, an increase of $1.2 million compared to $1.0 million in Q1 2020[134] - Non-interest expense increased by $0.9 million to $5.8 million in Q1 2021 from $4.9 million in Q1 2020[135] - Income tax expense for Q1 2021 was $3.2 million on income before taxes of $12.8 million, resulting in an effective tax rate of 25.4%[136] - Cash provided by operating activities was $11.1 million for the three months ended March 31, 2021, compared to $9.4 million for the same period in the prior year[189] - Cash provided by financing activities was $13.2 million for the three months ended March 31, 2021, down from $127.8 million in the same period last year[191] Assets and Liabilities - Total assets as of March 31, 2021, were $2.10 billion, with total equity of $209.9 million[125] - Total assets increased to $2.10 billion, up $24.8 million or 1.2% from December 31, 2020[142] - Total liabilities rose to $1.89 billion, an increase of $17.5 million or 0.9% from $1.88 billion at December 31, 2020[143] - Total deposits increased by $138.3 million or 8.7% to $1.73 billion at March 31, 2021, compared to $1.59 billion at December 31, 2020[143] - Cash and cash equivalents increased by $45.8 million or 10.0% to $504.4 million at March 31, 2021[145] - Total equity rose to $209.9 million, an increase of $7.3 million or 3.6% from December 31, 2020[159] - Total borrowings decreased by $123.0 million to $144.2 million at March 31, 2021, primarily due to repayments of advances from the Federal Reserve[158] Loan Performance - Provision for loan losses decreased by $0.9 million to $0.5 million in Q1 2021, down from $1.4 million in Q1 2020[133] - As of March 31, 2021, the allowance for loan losses was $30.2 million, an increase from $29.7 million at December 31, 2020, with a ratio of 1.95% to total loans[170] - Delinquent loans totaled $7.6 million, or 0.5% of total loans at March 31, 2021, a decrease of $3.9 million from December 31, 2020[176] - The company recorded a loan loss provision of $0.5 million during the three months ended March 31, 2021, compared to $1.4 million during the same period in 2020[171] - At March 31, 2021, loans delinquent 90 days or more and not accruing interest totaled $7.2 million, a decrease from $8.7 million at December 31, 2020[176] - The ratio of the allowance for loan losses to non-performing assets increased to 412.8% at March 31, 2021, compared to 334.9% at December 31, 2020[170] Capital and Regulatory Compliance - The Company and the Bank were both considered "well capitalized" as of March 31, 2021[194] - Tier 1 leverage ratio for the Company was 10.75% and for Parke Bank was 12.14% as of March 31, 2021[197] - The Company issued $30 million in subordinated notes in July 2020, structured to qualify as Tier 2 capital[198] - The Company has adopted the optional community bank leverage ratio framework effective January 1, 2020, simplifying capital requirements[195] Risk Factors - The company is exposed to risks related to the COVID-19 pandemic, which may impact demand for products and services, loan delinquencies, and overall financial performance[127] - The company participates in the SBA Paycheck Protection Program, which exposes it to potential litigation risks related to loan processing[129] Other Information - The company originated approximately $117.1 million of SBA PPP loans, with $93.4 million outstanding as of March 31, 2021[152] - Total investment securities decreased to $19.1 million, a decline of $2.0 million or 9.5% from December 31, 2020[146] - The investment securities portfolio classified as available for sale was $17.9 million at March 31, 2021[187] - Other Real Estate Owned (OREO) at March 31, 2021 was $0.1 million, down from $4.0 million at December 31, 2020[182] - The allowance for loan and lease losses is based on periodic evaluations and is subject to significant estimates and judgments[207] - There were no changes in the Company's internal control over financial reporting that materially affected its effectiveness during the last quarter[214]