Parke Bancorp(PKBK) - 2025 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2025, increased by $3.1 million, or 41.6%, to $10.6 million compared to $7.5 million for the same period in 2024[96]. - For the nine months ended September 30, 2025, net income available to common shareholders increased by $6.6 million, or 32.7%, to $26.7 million compared to $20.1 million for the same period in 2024[102]. - Net interest income for the third quarter of 2025 was $20.2 million, an increase of $5.4 million, or 37.0%, from $14.7 million in the third quarter of 2024[97]. - Net interest income for the nine months ended September 30, 2025, was $105.4 million, compared to $91.8 million for the same period in 2024, reflecting a significant increase[112]. - The net interest margin improved to 3.49% for the nine months ended September 30, 2025, compared to 2.99% for the same period in 2024[112]. Assets and Liabilities - As of September 30, 2025, the company reported total assets of $2.17 billion and total equity of $314.8 million[94]. - Total assets increased by $29.9 million, or 1.40%, to $2.17 billion as of September 30, 2025, primarily due to a $90.7 million increase in net loans[115]. - Total liabilities rose by $15.1 million, or 0.8%, to $1.86 billion, mainly due to a $121.5 million increase in total deposits[116]. - Total equity increased by $14.8 million, or 4.9%, to $314.8 million, attributed to retained earnings despite cash dividends and stock repurchases[117]. Loans and Deposits - Net loans increased by $90.7 million, or 4.9%, driven by growth in construction and commercial non-owner occupied loan portfolios[115]. - Total deposits increased by $121.5 million, or 7.5%, to $1.75 billion, with significant growth in money market balances[116]. - Loans receivable increased to $1.96 billion at September 30, 2025, from $1.87 billion at December 31, 2024, an increase of $92.0 million, or 4.9%[126]. - Money market deposits increased by $273.3 million, primarily due to a $218.3 million increase in the premier money market account balance[127]. Expenses and Provisions - The provision for credit losses for the three months ended September 30, 2025, was $0.4 million, compared to a recovery of $0.1 million for the same period in 2024, marking an increase of $0.5 million[98]. - The provision for credit losses for the nine months ended September 30, 2025, was $1.9 million, an increase of $1.4 million compared to $0.5 million for the same period in 2024[104]. - Non-interest expense increased by $0.8 million, or 12.6%, to $7.2 million for the three months ended September 30, 2025, compared to the same period in 2024[100]. - Non-interest expense for the nine months ended September 30, 2025, increased by $1.2 million, or 6.5%, to $20.4 million compared to the same period in 2024[106]. Cash Flow and Investments - Cash provided by operating activities was $25.1 million during the nine months ended September 30, 2025, compared to $26.6 million for the same period in the prior year[136]. - Cash used in investing activities was $91.6 million during the nine months ended September 30, 2025, compared to $52.3 million in the same period last year[137]. Legal Matters - The Company is involved in a legal matter where unit owners claim damages totaling approximately $1.7 million related to the Absecon Gardens Condominium project[150]. - The Company has a loan default case involving Voorhees Diner Corporation, with the original loan amount of $1.0 million increased to $1.4 million[151]. - The Company believes that no material losses are anticipated from various contingent liabilities and legal actions outstanding in the normal course of business[152]. Capitalization - The Company and the Bank were both considered "well capitalized" as of September 30, 2025[141]. - Estimated uninsured deposits increased to $881.8 million at September 30, 2025, from $642.7 million at December 31, 2024, an increase of $239.1 million, or 37.2%[128].