Parke Bancorp(US:PKBK)2024-04-19 20:18Financial Performance - Net income for Q1 2024 was $6.1 million, a decrease of $5.0 million or 44.8% compared to Q1 2023[2] - Net income available to common shareholders declined to $6,145 thousand in Q1 2024 from $11,123 thousand in Q1 2023, with diluted earnings per share dropping to $0.51 from $0.92[20] - Return on average assets decreased to 1.27% in Q1 2024 from 2.31% in Q1 2023, indicating lower profitability[22] - Return on average common equity fell to 8.60% in Q1 2024 from 16.65% in Q1 2023, reflecting reduced shareholder returns[22] Interest Income and Expenses - Net interest income decreased by 18.0% to $14.1 million for Q1 2024 compared to Q1 2023[2] - Total interest income increased to $29,477 thousand in Q1 2024 from $26,024 thousand in Q1 2023, reflecting growth in interest and fees on loans[20] - Net interest income decreased to $14,054 thousand in Q1 2024 from $17,149 thousand in Q1 2023, primarily due to higher interest expenses[20] - Net interest margin declined to 3.21% in Q1 2024 from 3.65% in Q1 2023, signaling tighter interest rate spreads[22] Asset and Loan Management - Total assets decreased by 0.7% to $2.01 billion at March 31, 2024, compared to December 31, 2023[1] - Total loans decreased by 0.1% to $1.79 billion at March 31, 2024, compared to December 31, 2023[1] - Nonperforming loans decreased by 3.8% to $7.0 million at March 31, 2024, representing 0.39% of total loans[10] - Non-accrual loans decreased to $6,988 thousand in Q1 2024 from $7,261 thousand in Q4 2023, with the allowance for credit losses to non-accrual loans ratio improving to 456.75%[23] Credit Losses and Allowances - Provision for credit losses was $0.2 million for Q1 2024, compared to a recovery of $2.4 million for Q1 2023[6] - The allowance for credit losses to total loans ratio was 1.79% at March 31, 2024, compared to 1.80% at December 31, 2023[10] - Allowance for credit losses on loans slightly decreased to $31,918 thousand in Q1 2024 from $32,131 thousand in Q4 2023, with the allowance to total loans ratio at 1.79%[23] Deposit Trends - Total deposits increased by 0.7% to $1.56 billion at March 31, 2024, compared to December 31, 2023[1] Non-Interest Income and Expenses - Non-interest income decreased by 40.4% to $1.1 million for Q1 2024 compared to Q1 2023[7] - Non-interest expense decreased by 3.3% to $6.5 million for Q1 2024 compared to Q1 2023[8] - Efficiency ratio worsened to 43.23% in Q1 2024 from 35.71% in Q1 2023, indicating higher operating costs relative to income[22]