Parke Bancorp, Inc. Announces an 11% Increase in Quarterly Earnings

     Parke Bancorp, Inc. Announces an 11% Increase in Quarterly Earnings

PR Newswire

WASHINGTON TOWNSHIP, N.J., Oct. 26, 2012

WASHINGTON TOWNSHIP, N.J., Oct. 26, 2012 /PRNewswire/ --Parke Bancorp, Inc.
("Parke Bancorp") (NASDAQ: PKBK), the parent company of Parke Bank, announced
its operating results for the quarter ended September 30, 2012.

Parke Bancorp reported net income available to common shareholders of $1.5
million, or $0.25 per diluted common share, for the September 30, 2012
quarter, compared to net income of $1.3 million, or $0.23 per diluted common
share, reported for the quarter ended September 30, 2011, an increase of
11.3%. The following is a recap of significant items that impacted the third
quarter of 2012 compared to the same quarter last year: a $662,000 decrease
in net interest income primarily attributable to lower loan volumes and rates
offset by a lower cost of deposits; an $850,000 decrease in provision for loan
losses; a $132,000 loss on other real estate owned ("OREO") compared to a
$577,000 loss last year; increased OREO expenses and other loan related
expenses of $349,000 resulting from a greater number of properties owned as a
result of foreclosure or deed in lieu of foreclosure. Net income available to
common shareholders year-to-date was $4.6 million or $0.85 per diluted common
share, compared to $5.3 million, or $0.96 per diluted common share, reported
for the nine months ended September 30, 2011, a decrease of 12.5%.

At September 30, 2012, Parke Bancorp's total assets had decreased to $770.2
million from $790.7 million at December 31, 2011, a decrease of $20.5 million
or 2.6%, due to decreases in total loans, cash and cash equivalents and
investment securities.

Parke Bancorp's total loans decreased to $603.6 million at September 30, 2012
from $625.1 million at December 31, 2011, a decrease of $21.5 million or 3.4%.

At September 30, 2012, Parke Bancorp had $52.9 million in nonperforming loans
representing 6.9% of total assets, an increase from $44.5 million at December
31, 2011. OREO at September 30, 2012 was $28.1 million, compared to $19.4
million at December 31, 2011. OREO consisted of 37 properties, the largest
being a condominium development recorded at $12.8 million. Nonperforming
assets (consisting of nonperforming loans and OREO) represented 10.5% of total
assets at September 30, 2012 as compared to 8.1% of total assets at December
31, 2011. Loans past due 30 to 89 days were $6.8 million at September 30,
2012, an increase of $800,000 from the previous quarter

At September 30, 2012, Parke Bancorp's allowance for loan losses was $17.5
million. The ratio of allowance for loan losses to total loans decreased to
2.9% at September 30, 2012 from 3.1% at December 31, 2011. The decline is
attributable to the charge-off of specific reserves on impaired loans that had
been established in previous periods. The ratio of allowance for loan losses
to non-performing loans was 33.1% at September 30, 2012, compared to 43.5% at
December 31, 2011. During the quarter Parke Bancorp recorded net charge-offs
of $2.3 million, primarily due to estimated collateral deficiencies on
impaired loans.

Parke Bancorp's total investment securities portfolio decreased to $23.5
million from $24.5 million at December 31, 2011, a decrease of $1.0 million or
4.2%.

At September 30, 2012, Parke Bancorp's total deposits were $639.7 million, up
from $634.9 million at December 31, 2011, an increase of $4.8 million or 0.8%.

Parke Bancorp's total borrowings decreased to $43.9 million from $74.0 million
at December 31, 2011, a decrease of $30.1 million or 40.7%.

Parke Bancorp's total equity increased to $81.6 million at September 30, 2012
from $77.3 million at December 31, 2011, an increase of $4.3 million or 5.6%
due to the retention of earnings from the year.

Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp and
Parke Bank, provided the following statement:

"We are very proud to have an 11% increase in earnings this quarter. However,
the banking industry is still under extreme pressure for growth and earnings.
The persistent high unemployment rate hampers an already sluggish economy. The
Dodd Frank Act continues to provide the biggest banks an unfair advantage over
community banks. The four largest banks have seen a dramatic increase in their
assets over the last couple of years due to the unlevel playing field. We also
see increased pressure on our Net Interest Margin due to the continued low
interest rate environment. These combined factors create a big challenge to
maintain profitability for community banks. We have made progress in disposing
of some of our troubled assets, although we have a ways to go. The very slow
legal process in New Jersey makes it difficult to gain control of a troubled
asset, which is needed in order to sell the collateral. Our SBA Company, 44
Business Capital, remains the top SBA lender in the Delaware Valley area. 44
Business Capital has an excellent team of management and lenders that support
the growth of this company. November's election will play a major part in the
direction of our country and the economy. We are cautiously optimistic that
once the election is over, a clearer path for the country will be established
and companies can again plan for investment and growth. Our Board and staff
continue to work very hard to generate a strong return for our loyal
shareholders."

Parke Bancorp, Inc. was incorporated in January 2005 while Parke Bank
commenced operations in January 1999. Parke Bancorp and Parke Bank maintain
their principal offices at 601 Delsea Drive, Washington Township, New Jersey.
Parke Bank conducts business through a branch office in Northfield, New
Jersey, two branch offices in Washington Township, New Jersey, a branch office
in Galloway Township, New Jersey and a branch in center city Philadelphia.
Parke Bank is a full service commercial bank, with an emphasis on providing
personal and business financial services to individuals and small-sized
businesses primarily in Gloucester, Atlantic and Cape May counties in New
Jersey and Philadelphia and surrounding counties in Pennsylvania. Parke Bank's
deposits are insured up to the maximum legal amount by the Federal Deposit
Insurance Corporation (FDIC). Parke Bancorp's common stock is traded on the
NASDAQ Capital Market under the symbol "PKBK".

This release may contain forward-looking statements. We caution that such
statements may be subject to a number of uncertainties and actual results
could differ materially and, therefore, readers should not place undue
reliance on any forward-looking statements. Parke Bancorp, Inc. does not
undertake, and specifically disclaims, any obligations to publicly release the
results of any revisions that may be made to any forward-looking statements to
reflect the occurrence of anticipated or unanticipated events or circumstances
after the date of such circumstance.



Statements of Condition Data
                              September 30, 2012 December 31, 2011 % Change
                              (in thousands)
Total Assets                  $      770,190     $     790,738     -2.6%
Cash and cash equivalents     100,883            110,228           -8.5%
Investment securities         23,515             24,549            -4.2%
Loans, net of unearned income 603,560            625,117           -3.4%
Deposits                      639,700            634,855           0.8%
Borrowings                    43,891             74,010            -40.7%
Total equity                  81,590             77,273            5.6%



Operating Ratios
                                Three Months Ended Nine Months Ended
                                September 30,       September 30,
                                2012      2011      2012      2011
Return on average assets        0.89%     0.83%     0.92%     1.08%
Return on average common equity 8.94%     8.68%     9.56%     11.91%
Interest rate spread            3.85%     4.28%     4.03%     4.32%
Net interest margin             3.96%     4.43%     4.15%     4.47%
Efficiency ratio                42.06%    36.71%    43.08%    34.08%



Asset Quality Data
                                         September 30, December 31,
                                                       2011
                                         2012
                                         (in thousands)
Allowance for loan losses                $    17,487   $   19,323
Allowance for loan losses to total loans      2.90%        3.09%
Non-accrual loans                        $    52,910   $   44,459
OREO                                     $    28,102   $   19,410



Statements of Income Data
                                       Three Months Ended  Nine Months Ended
                                       September 30,       September 30,
                                       2012      2011      2012      2011
                                       (in thousands)
Interest and dividend income           $  9,084  $  10,272 $  28,615 $  30,910
Interest expense                       1,786     2,312     5,720     7,031
Net interest income                    7,298     7,960     22,895    23,879
Provision for loan losses              1,500     2,350     5,800     6,850
Net interest income after provision
for                                    5,798     5,610     17,095    17,029
loan losses
Non-interest income                    952       325       2,567     3,939
Non-interest expense                   3,470     3,052     10,968    9,508
Income before income taxes             3,280     2,883     8,694     11,460
Provision for income taxes             1,365     1,161     2,895     4,605
Net income attributable to Company
and noncontrolling (minority)          1,915     1,722     5,799     6,855
interests
Net income attributable to             (194)     (152)     (442)     (848)
noncontrolling (minority) interests
Net income attributable to Company     1,721     1,570     5,357     6,007
Preferred stock dividend and discount  253       251       758       749
Net income available to common         1,468     1,319     4,599     5,258
shareholders
Basic income per common share          0.25      0.23      0.86      0.98
Diluted income per common share        0.25      0.23      0.85      0.96
Weighted shares - basic                5,872,276 5,818,506 5,378,103 5,374,561
Weighted shares - diluted              5,872,643 5,841,855 5,381,347 5,489,798



SOURCE Parke Bancorp, Inc.

Website: http://www.parkebank.com
Contact: Vito S. Pantilione, President and CEO; or John F. Hawkins, Senior
Vice President and CFO, +1-856-256-2500
 
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