Parke Bancorp(US:PKBK)2025-03-12 20:05Financial 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].