Parke Bancorp(PKBK) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $10.6 million, a 28.3% increase from Q2 2025[1] - Revenue for Q3 2025 reached $37.4 million, up 4.2% from Q2 2025[1] - Net interest income for Q3 2025 was $20.2 million, a 37.0% increase compared to Q3 2024[2] - Parke Bank's net income for Q3 2025 increased by 41.6% to $10.6 million, compared to $7.5 million in Q3 2024, representing a growth of $3.1 million[12] - The return on average assets improved to 1.99% for Q3 2025, compared to 1.49% for Q3 2024[20] Asset and Loan Growth - Total assets increased to $2.17 billion, a 1.4% rise since December 31, 2024[1] - Total loans grew to $1.93 billion, reflecting a 4.9% increase since December 31, 2024[1] - The outstanding loan balance increased by $92.0 million to $1.96 billion as of September 30, 2025, with new loan generation of $144 million during the nine months ended September 30, 2025[12] Deposit and Equity Changes - Total deposits rose to $1.75 billion, marking a 7.5% increase since December 31, 2024[1] - Total deposits rose to $1.75 billion as of September 30, 2025, an increase of $121.5 million or 7.5% from $1.63 billion at December 31, 2024[13] - Total equity increased to $314.8 million at September 30, 2025, a rise of $14.8 million or 4.9% from $300.1 million at December 31, 2024[13] Credit Losses and Non-Performing Loans - Provision for credit losses for Q3 2025 was $0.4 million, compared to a recovery of $0.1 million in Q3 2024[2] - Non-performing loans increased to $12.4 million as of September 30, 2025, up from $11.8 million as of December 31, 2024[12] - The allowance for credit losses was $33.9 million at September 30, 2025, with a ratio of 1.73% to total loans[11] - The allowance for credit losses on loans was $33.9 million, representing 1.73% of total loans as of September 30, 2025[21] Expenses and Efficiency - Non-interest income decreased to $0.85 million for Q3 2025, down 5.6% from Q3 2024[2] - Non-interest expense increased to $7.2 million for Q3 2025, a 12.6% rise compared to Q3 2024[2] - The efficiency ratio improved to 35.68% as of September 30, 2025, down from 41.37% a year earlier, indicating better cost management[12] Interest Income - Interest income for the nine months ended September 30, 2025, was $105.4 million, up from $91.8 million for the same period in 2024[19] Debt Management - Parke Bank repaid $30.0 million in subordinated debt, strengthening its balance sheet and reducing interest expenses[12]