Parke Bancorp(US:PKBK)2022-11-10 21:19Financial Performance - Net income available to common shareholders for Q3 2022 increased by $39.0 thousand, or 0.4%, to $10.53 million compared to Q3 2021[111]. - Net income available to common shareholders for the nine months ended September 30, 2022, increased by $683.0 thousand, or 2.2%, to $31.3 million compared to the same period in 2021[118]. - Net interest income for Q3 2022 increased by $1.8 million, or 10.4%, to $19.3 million compared to Q3 2021[112]. - Net interest income for the nine months ended September 30, 2022, increased by $2.0 million, or 3.9%, to $54.4 million compared to the same period in 2021[119]. - Non-interest income for Q3 2022 was $2.0 million, a decrease of $167.0 thousand compared to Q3 2021[114]. - Non-interest income for the nine months ended September 30, 2022, was $6.6 million, an increase of $53.0 thousand, or 0.8%, compared to the same period last year[121]. - Income tax expense for the nine months ended September 30, 2022, was $11.0 million on income before taxes of $42.4 million, resulting in an effective tax rate of 25.9%[123]. Assets and Liabilities - Total assets as of September 30, 2022, were $1.92 billion, with total equity of $257.3 million[110]. - Total assets decreased by $213.2 million, or 10.0%, to $1.92 billion as of September 30, 2022, primarily due to a decrease in cash and cash equivalents[131]. - Total liabilities decreased by $238.2 million, or 12.5%, to $1.67 billion, mainly due to a reduction in total deposits[132]. - Total deposits fell by $233.2 million, or 13.2%, to $1.54 billion, with non-interest demand deposits decreasing by $160.0 million[132]. - Total equity increased by $25.0 million, or 10.7%, to $257.3 million, attributed to retained earnings despite $6.0 million in cash dividends paid[133]. Loans and Credit Quality - Loans increased by $194.5 million, or 13.1%, to $1.68 billion at September 30, 2022, driven by growth in residential and commercial mortgage loans[134]. - Loans receivable increased to $1.68 billion at September 30, 2022, from $1.48 billion at December 31, 2021, representing an increase of 13.1%[143]. - The allowance for loan losses was $31.0 million at September 30, 2022, compared to $29.8 million at December 31, 2021, with a ratio of 1.85% to total loans[172]. - Delinquent loans totaled $17.0 million, representing 1.0% of total loans as of September 30, 2022, an increase of $12.3 million from December 31, 2021[177]. - Loans 90 days or more delinquent and not accruing interest amounted to $16.9 million, or 1.0% of total loans, up from $4.3 million (0.3%) at December 31, 2021[177]. - Impaired loans were reported at $22.5 million as of September 30, 2022, compared to $10.3 million at December 31, 2021[178]. - The ratio of the allowance for loan losses to non-performing assets decreased to 164.5% at September 30, 2022, from 500.6% at December 31, 2021[172]. Cash Flow and Financing Activities - Cash provided by operating activities was $34.3 million for the nine months ended September 30, 2022, compared to $29.5 million for the same period in the prior year, an increase of 16.3%[152]. - Cash used in financing activities was $245.9 million for the nine months ended September 30, 2022, compared to cash provided by financing activities of $47.4 million in the same period last year[154]. - Total borrowings decreased to $116.0 million at September 30, 2022, from $120.9 million at December 31, 2021[145]. Other Financial Metrics - The net interest margin improved to 3.71% for the nine months ended September 30, 2022, compared to 3.41% in the prior year[129]. - Cash and cash equivalents decreased by $403.2 million, or 67.6%, to $193.3 million, primarily due to cash withdrawals and loan funding[135]. - Investment securities decreased by $3.9 million, or 16.8%, to $19.4 million, due to normal pay downs and a decrease in fair market valuation[136]. - The company focuses on lending in residential mortgage, commercial mortgage, and construction loan sectors, primarily serving small to mid-sized businesses and individual consumers[137]. - The Company had outstanding loan commitments of $176.5 million at September 30, 2022[151]. - Unused commitments to extend credit were approximately $176.5 million as of September 30, 2022, compared to $117.7 million at December 31, 2021[185]. - Standby letters of credit remained stable at $1.5 million for both September 30, 2022, and December 31, 2021[186]. - Other Real Estate Owned (OREO) increased slightly to $1.9 million as of September 30, 2022, from $1.8 million a year earlier[180]. - The allowance for loan and lease losses is based on periodic evaluations and is subject to significant estimates and judgments[190]. - The fair value of available-for-sale securities is primarily determined by independent third-party valuation services[193]. - The company has adequate resources to fund all unfunded commitments and meet contractual obligations as they come due[187].