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Parke Bancorp, Inc. Announces A 67.6% Increase In Quarterly Earnings

     Parke Bancorp, Inc. Announces A 67.6% Increase In Quarterly Earnings

PR Newswire

WASHINGTON TOWNSHIP, N.J., Jan. 25, 2013

WASHINGTON TOWNSHIP, N.J., Jan. 25, 2013 /PRNewswire/ --Parke Bancorp, Inc.
("Parke Bancorp") (NASDAQ: PKBK), the parent company of Parke Bank, announced
its operating results for the quarter and year ended December 31, 2012.

Parke Bancorp reported net income available to common shareholders of $1.70
million, or $0.29 per diluted common share, for the December 31, 2012 quarter,
compared to net income of $1.01 million, or $0.17 per diluted common share,
reported for the quarter ended December 31, 2011, an increase of 67.6%. The
following is a recap of significant items that impacted the fourth quarter of
2012 compared to the same quarter last year: a $773,000 decrease in net
interest income primarily attributable to lower loan volumes and rates offset
by a lower cost of deposits; a $2.10 million decrease in the provision for
loan losses; a $987,000 increase in gain on sale of SBA loans; a $412,000
increase in professional fees primarily related to the workout of troubled
loans; a $243,000 loss on other real estate owned ("OREO") compared to a
$31,000 loss last year; increased OREO expense of $294,000 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 for the year ended
December 31, 2012 was $6.30 million or $1.17 per diluted common share,
compared to $6.27 million, or $1.15 per diluted common share, reported for the
year ended December 31, 2011, an increase of 0.5%.

At December 31, 2012, Parke Bancorp's total assets had decreased to $770.48
million from $790.74 million at December 31, 2011, a decrease of $20.26
million or 2.6%, primarily due to a decline in cash and cash equivalents and
investment securities.

Parke Bancorp's total loans increased to $629.71 million at December 31, 2012
from $625.12 million at December 31, 2011, an increase of $4.59 million or
0.7%.

At December 31, 2012, Parke Bancorp had $47.55 million in nonperforming loans
representing 6.2% of total assets, an increase from $44.6 million at December
31, 2011. OREO at December 31, 2012 was $26.06 million, compared to $19.41
million at December 31, 2011. OREO consisted of 33 properties, the largest
being a condominium development recorded at $12.77 million. Nonperforming
assets (consisting of nonperforming loans and OREO) represented 9.6% of total
assets at December 31, 2012 as compared to 10.5% of total assets at September
30, 2012 and 8.1% of total assets at December 31, 2011. Loans past due 30 to
89 days were $8.43 million at December 31, 2012, an increase of $1.59 million
from the previous quarter.

At December 31, 2012, Parke Bancorp's allowance for loan losses was $18.94
million. The ratio of allowance for loan losses to total loans decreased to
3.0% at December 31, 2012 from 3.1% at December 31, 2011. The ratio of
allowance for loan losses to non-performing loans was 39.8% at December 31,
2012, compared to 43.5% at December 31, 2011.

Parke Bancorp's total investment securities portfolio decreased to $21.41
million from $24.55 million at December 31, 2011, a decrease of $3.14 million
or 12.8%.

At December 31, 2012, Parke Bancorp's total deposits were $637.21 million, up
from $634.86 million at December 31, 2011, an increase of $2.35 million or
0.4%.

Parke Bancorp's total borrowings decreased to $43.85 million from $74.01
million at December 31, 2011, a decrease of $30.16 million or 40.7%.

Parke Bancorp's total equity increased to $83.54 million at December 31, 2012
from $77.27 million at December 31, 2011, an increase of $6.27 million or 8.1%
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:

"Our bank had a very strong fourth quarter with close to a 70% increase in
earnings over the fourth quarter of 2011. We experienced growth in our loan
portfolio, which ended the year at $629.7 million. We continue to enjoy strong
revenues from our SBA lending company and look forward to increasing our
support for small business lending in 2013. We continue to make progress,
although slowly, in resolving our nonperforming loans. It is still very
difficult to obtain control of properties that are in default due to the
lengthy legal system in New Jersey. In some instances it has taken close to
three years to foreclose on a real estate property that is in default, which
creates additional unwarranted expenses during the process Unfortunately, the
challenges to community banking have remained; an unlevel playing field with
the big banks, the dramatic increase in expenses due to regulatory compliance
and a shrinking net interest margin due to the low rate environment. However,
we are proud that Parke Bank is again one of the top money makers in our
banking peer group and that we continue to maintain capital levels well in
excess of the regulatory definition of a well-capitalized bank."

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
                              December 31, 2012 December 31, 2011 % Change
                              (in thousands)
Total Assets                  $     770,477     $     790,738     -2.6%
Cash and cash equivalents     76,866            110,228           -30.3%
Investment securities         21,406            24,549            -12.8%
Loans, net of unearned income 629,712           625,117           0.7%
Deposits                      637,207           634,855           0.4%
Borrowings                    43,851            74,010            -40.7%
Total equity                  83,543            77,273            8.1%



Operating Ratios
                                Three Months Ended Twelve Months Ended

                                December 31,       December 31,
                                2012      2011     2012      2011
Return on average assets        1.01%     0.65%    0.94%     0.97%
Return on average common equity 10.11%    6.53%    9.70%     10.51%
Interest rate spread            3.94%     4.25%    4.00%     4.32%
Net interest margin             4.04%     4.39%    4.12%     4.46%
Efficiency ratio                44.58%    34.52%   43.12%    34.18%



Asset Quality Data
                                         December 31, December 31,

                                         2012        2011
                                         (in thousands)
Allowance for loan losses                $   18,936   $   19,323
Allowance for loan losses to total loans     3.01%        3.09%
Non-accrual loans                        $   47,549   $   44,459
OREO                                     $   26,057   $   19,410



Statements of Income Data
                                       Three Months Ended  Twelve Months Ended
                                       December 31,        December 31,
                                       2012      2011      2012      2011
                                       (in thousands)
Interest and dividend income           $  9,130  $  10,399 $  37,746 $  41,309
Interest expense                       1,704     2,200     7,424     9,231
Net interest income                    7,426     8,199     30,322    32,078
Provision for loan losses              1,500     3,600     7,300     10,450
Net interest income after provision    5,926     4,599     23,022    21,628
for loan losses
Non-interest income                    1,809     786       4,368     4,725
Non-interest expense                   4,117     3,117     15,079    12,625
Income before income taxes             3,618     2,268     12,311    13,728
Provision for income taxes             1,348     918       4,242     5,524
Net income attributable to Company and 2,270     1,350     8,069     8,204
noncontrolling (minority) interests
Net income attributable to             (315)     (84)      (756)     (932)
noncontrolling (minority) interests
Net income attributable to Company     1,955     1,266     7,313     7,272
Preferred stock dividend and discount  254       251       1,012     1,000
Net income available to common         1,701     1,015     6,301     6,272
shareholders
Basic income per common share          0.29      0.17      1.17      1.17
Diluted income per common share        0.29      0.17      1.17      1.15
Weighted shares - basic                5,872,276 5,818,506 5,379,558 5,374,561
Weighted shares - diluted              5,874,681 5,834,051 5,382,596 5,466,458



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