Parke Bancorp(PKBK) - 2025 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2025, net income available to common shareholders increased by $1.8 million, or 28.3%, to $8.3 million compared to $6.5 million for the same period in 2024[97]. - For the six months ended June 30, 2025, net income available to common shareholders increased by $3.5 million, or 27.4%, to $16.1 million compared to $12.6 million for the same period in 2024[104]. Net Interest Income - Net interest income for the second quarter of 2025 was $17.9 million, an increase of $3.6 million, or 24.9%, from $14.3 million in the second quarter of 2024[98]. - Net interest income for the six months ended June 30, 2025, was $34.5 million, an increase of $6.1 million, or 21.6%, from $28.4 million in the same period of 2024[105]. - The interest rate spread improved to 2.46% for the three months ended June 30, 2025, compared to 1.95% for the same period in 2024[115]. Interest and Fees on Loans - Interest income increased by $4.8 million, or 16.0%, during the three months ended June 30, 2025, primarily due to a $4.0 million increase in interest and fees on loans[98]. Provision for Credit Losses - Provision for credit losses for the three months ended June 30, 2025, was $1.0 million, compared to $0.5 million for the same period in 2024, reflecting an increase of $0.5 million[99]. - Provision for credit losses for the six months ended June 30, 2025, was $1.6 million, compared to $0.7 million for the same period in 2024, reflecting an increase of $0.9 million[106]. Non-Interest Income and Expense - Non-interest income decreased by $0.4 million, to $0.8 million for the three months ended June 30, 2025, compared to $1.2 million for the same period in 2024[100]. - Non-interest income for the six months ended June 30, 2025, was $1.6 million, a decrease of $0.6 million compared to $2.3 million for the same period in 2024[107]. - Non-interest expense increased by $0.4 million, or 3.5%, to $13.2 million for the six months ended June 30, 2025, compared to the same period in 2024[108]. Assets and Liabilities - Total assets increased by $28.1 million, or 1.30%, to $2.17 billion as of June 30, 2025, compared to December 31, 2024[118]. - Total liabilities rose by $16.0 million, or 0.9%, to $1.86 billion, driven by a $62.4 million increase in total deposits, or 3.8%[119]. - Total equity increased by $12.1 million, or 4.0%, to $312.2 million, mainly due to retained earnings[120]. Loans and Deposits - Net loans increased by $66.6 million, or 3.6%, primarily due to growth in the commercial non-owner occupied and construction loan portfolios[118]. - Total deposits increased to $1.69 billion at June 30, 2025, from $1.63 billion at December 31, 2024, an increase of $62.4 million, or 3.8%[129]. - Loans receivable increased to $1.93 billion at June 30, 2025, from $1.87 billion at December 31, 2024, an increase of $66.6 million, or 3.6%[128]. Cash Flow - Cash provided by operating activities was $13.8 million during the six months ended June 30, 2025, compared to $17.2 million for the same period in the prior year[137]. - Cash used in investing activities was $64.2 million during the six months ended June 30, 2025, compared to $19.3 million in the same period last year[138]. - Cash provided by financing activities was $13.2 million during the six months ended June 30, 2025, compared to cash used in financing activities of $10.6 million in the same period last year[139]. Legal Matters - Management believes no material losses are anticipated from various contingent liabilities and legal actions[153]. - There are no material pending legal proceedings other than routine litigation incidental to the business[154].