Parke Bancorp, Inc. Announces A 22.7% Increase In Quarterly Earnings

     Parke Bancorp, Inc. Announces A 22.7% Increase In Quarterly Earnings

PR Newswire

WASHINGTON TOWNSHIP, N.J., April 22, 2013

WASHINGTON TOWNSHIP, N.J., April 22, 2013 /PRNewswire/ -- Parke Bancorp, Inc.
("Parke Bancorp") (NASDAQ: PKBK), the parent company of Parke Bank, announced
its operating results for the quarter ended March 31, 2013.

Parke Bancorp reported net income available to common shareholders of $1.88
million, or $0.35 per diluted common share, for the quarter ended March 31,
2013, compared to net income of $1.54 million, or $0.28 per diluted common
share, for the quarter ended March 31, 2012, an increase of 22.7%. The
increase was due primarily to a $1.25 million decrease in the provision for
loan losses. The following is a recap of other significant items that impacted
the first quarter of 2013 compared to the same quarter last year: a $144,000
decrease in net interest income primarily attributable to lower loan rates
offset by a lower cost of deposits; a $103,000 decrease in gain on sale of SBA
loans; a $364,000 loss on other real estate owned ("OREO") compared to an
$88,000 loss last year; increased compensation and benefits expense of
$216,000 resulting from additional staff, salary increases and increased
benefit costs.

At March 31, 2013, Parke Bancorp's total assets had decreased to $757.10
million from $770.48 million at December 31, 2012, a decrease of $13.38
million, or 1.7%, primarily due to a decline in cash and cash equivalents.

Parke Bancorp's total loans increased to $631.62 million at March 31, 2013
from $629.71 million at December 31, 2012, an increase of $1.91 million or
0.3%.

At March 31, 2013, Parke Bancorp had $45.55 million in nonperforming loans
representing 6.0% of total assets, a decrease from $47.55 million at December
31, 2012. OREO at March 31, 2013 was $25.91 million, compared to $26.06
million at December 31, 2012. OREO consisted of 31 properties, the largest
being a condominium development recorded at $12.77 million. Nonperforming
assets (consisting of nonperforming loans and OREO) represented 9.4% of total
assets at March 31, 2013 as compared to 9.6% of total assets at December 31,
2012. Loans past due 30 to 89 days were $6.57 million at March 31, 2013, a
decrease of $1.86 million from the previous quarter.

At March 31, 2013, Parke Bancorp's allowance for loan losses was $19.86
million. The ratio of allowance for loan losses to total loans increased to
3.1% at March 31, 2013 from 3.0% at December 31, 2012. The ratio of allowance
for loan losses to non-performing loans was 43.6% at March 31, 2013, compared
to 39.8% at December 31, 2012.

Parke Bancorp's total investment securities portfolio decreased to $20.96
million from $21.41 million at December 31, 2012, a decrease of $447,000 or
2.1%.

At March 31, 2013, Parke Bancorp's total deposits were $623.68 million, down
from $637.21 million at December 31, 2012, a decrease of $13.53 million or
2.1%.

Parke Bancorp's total borrowings decreased to $43.81 million from $43.85
million at December 31, 2012, a decrease of $42,000 or 0.1%.

Total shareholders' equity increased to $85.93 million at March 31, 2013 from
$83.64 million at December 31, 2012, an increase of $2.29 million or 2.7%, due
to the retention of earnings.

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

"We are pleased with our strong 23% increase in first quarter earnings. It is
very important to note the improvement in the trends for non-performing loans,
OREO properties and delinquencies. Although this is very positive, we have
maintained our commitment to a prudent balance sheet by increasing our
Allowance for Loan Losses to 3.1% of our total loan portfolio, up from 3% at
year end. We continue to incur increased expenses for our OREO portfolio due
to the continued weak real estate market. However, we do see improvement as
indicated in our improved position in our OREO properties and non-performing
loans. Continued fierce competition from big banks for quality loans has made
it difficult to grow our loan portfolio. However, with our strong earnings we
continue to improve and maintain capital levels that are over $41 million in
excess of Banking Regulators' 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
                              March 31, 2013 December 31, 2012 % Change
                              (in thousands)
Total Assets                  $    757,099   $     770,477     -1.7%
Cash and cash equivalents     63,173         76,866            -17.8%
Investment securities         20,959         21,406            -2.1%
Loans, net of unearned income 631,621        629,712           0.3%
Deposits                      623,677        637,207           -2.1%
Borrowings                    43,809         43,851            -0.1%
Total shareholders' equity    85,931         83,637            2.7%



Operating Ratios
                                Three Months Ended March 31,
                                2013           2012
Return on average assets        1.13%          0.92%
Return on average common equity 11.07%         9.77%
Interest rate spread            4.13%          4.13%
Net interest margin             4.33%          4.26%
Efficiency ratio                44.69%         39.46%



Asset Quality Data
                                         March 31, December 31,
                                         2013      2012
                                         (in thousands)
Allowance for loan losses                $  19,861 $   18,936
Allowance for loan losses to total loans    3.14%      3.01%
Non-accrual loans                        $  45,551 $   47,549
OREO                                     $  25,906 $   26,057



Statements of Income Data
                                                  Three Months Ended March 31,
                                                  2013            2012
                                                  (in thousands)
Interest and dividend income                      $    9,292      $   9,854
Interest expense                                  1,597           2,015
Net interest income                               7,695           7,839
Provision for loan losses                         1,000           2,250
Net interest income after provision for loan      6,695           5,589
losses
Non-interest income                               647             1,107
Non-interest expense                              3,728           3,530
Income before income taxes                        3,614           3,166
Provision for income taxes                        1,413           1,272
Net income attributable to Company and            2,201           1,894
noncontrolling (minority) interests
Net income attributable to noncontrolling         (64)            (107)
(minority) interests
Net income attributable to Company                2,137           1,787
Preferred stock dividend and discount             254             252
Net income available to common shareholders       1,883           1,535
Basic income per common share                     0.35            0.29
Diluted income per common share                   0.35            0.28
Weighted shares - basic                           5,385,684       5,374,561
Weighted shares - diluted                         5,432,109       5,386,786

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, (856) 256-2500
 
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