Parke Bancorp, Inc. Announces a 8.5% Increase in Quarterly Earnings, a 15.4% Increase Year-to-Date

 Parke Bancorp, Inc. Announces a 8.5% Increase in Quarterly Earnings, a 15.4%
                            Increase Year-to-Date

PR Newswire

WASHINGTON TOWNSHIP, N.J., July 24, 2013

WASHINGTON TOWNSHIP, N.J., July 24, 2013 /PRNewswire/ --Parke Bancorp, Inc.
("Parke Bancorp") (NASDAQ: "PKBK"), the parent company of Parke Bank,
announced its operating results for the quarter ended June 30, 2013.

Parke Bancorp reported net income available to common shareholders of $1.73
million, or $0.29 per diluted common share, for the quarter ended June 30,
2013, compared to net income of $1.60 million, or $0.27 per diluted common
share, for the quarter ended June 30, 2012, an increase of 8.5%. The increase
was due primarily to a $1.05 million decrease in the provision for loan
losses. The following is a recap of other significant items that impacted the
second quarter of 2013 compared to the same quarter last year: a $272,000
decrease in net interest income primarily attributable to lower loan rates; a
$214,000 increase in gain on sale of SBA loans; a $446,000 decrease in loss on
other real estate owned ("OREO"); increased compensation and benefits expense
of $314,000 resulting from additional staff, salary increases and increased
benefit costs; a $1.14 million increase in income tax expense due to a change
in tax treatment for bank owned life insurance ("BOLI") income during the 2012
quarter. Net income available to common shareholders year-to-date was $3.62
million or $0.61 per diluted common share, compared to $3.13 million, or $0.53
per diluted common share, for the six months ended June 30, 2012, an increase
of 15.4%.

At June 30, 2013, Parke Bancorp's total assets had decreased to $738.36
million from $770.48 million at December 31, 2012, a decrease of $32.12
million, or 4.2%, due to a decline in cash and cash equivalents.

Parke Bancorp's total loans increased to $644.02 million at June 30, 2013 from
$629.71 million at December 31, 2012, an increase of $14.31 million or 2.3%.

At June 30, 2013, Parke Bancorp had $45.25 million in nonperforming loans
representing 6.2% of total assets, a decrease from $47.55 million at December
31, 2012. OREO at June 30, 2013 was $23.67 million, compared to $26.06 million
at December 31, 2012. OREO consisted of 24 properties, the largest being a
condominium development recorded at $12.83 million. Nonperforming assets
(consisting of nonperforming loans and OREO) represented 9.4% of total assets
at June 30, 2013 as compared to 9.6% of total assets at December 31, 2012.
Loans past due 30 to 89 days were $5.62 million at June 30, 2013, a decrease
of $1.00 million from the previous quarter.

At June 30, 2013, Parke Bancorp's allowance for loan losses was $20.87
million. The ratio of allowance for loan losses to total loans increased to
3.2% at June 30, 2013 from 3.0% at December 31, 2012. The ratio of allowance
for loan losses to non-performing loans was 46.1% at June 30, 2013, compared
to 39.8% at December 31, 2012.

Parke Bancorp's total investment securities portfolio decreased to $19.62
million from $21.41 million at December 31, 2012, a decrease of $1.79 million
or 8.4%.

At June 30, 2013, Parke Bancorp's total deposits were $609.52 million, down
from $637.21 million at December 31, 2012, a decrease of $27.69 million or
4.3%.

Parke Bancorp's total borrowings decreased to $38.77 million from $43.85
million at December 31, 2012, a decrease of $5.08 million or 11.6%.

Total shareholders' equity increased to $85.88 million at June 30, 2013 from
$83.64 million at December 31, 2012, an increase of $2.24 million or 2.7%, due
to the retention of earnings. In addition, during the second quarter, the
Company redeemed the outstanding warrant that was issued to the US Treasury in
connection with the TARP, reducing shareholders' equity by $1.65 million.

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

"Continued low interest rates has put pressure on the banking industry's net
interest margin, which when combined with the weak demand and high competition
in generating new loans, creates critical challenges in maintaining bank
profitability. These challenges make it even more important that our bank
increased net income 15.4% in the second quarter. The key metrics of our bank,
including non-performing loans, OREO, delinquencies and allowance for loan
losses, continue to improve, although not as quickly as we would like to see.
We continue to work very hard to control our expenses in an environment of
increased regulatory requirements. This continues to play a major role in the
strength of our earnings. We are very happy to have been able to retire the
TARP warrant, which helps support the investment of our 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
                              June 30,  December 31,
                                                     % Change
                              2013      2012
                              (in thousands)
Total Assets                  $ 738,363 $   770,477  -4.2%
Cash and cash equivalents     37,089    76,866       -51.7%
Investment securities         19,615    21,406       -8.4%
Loans, net of unearned income 644,024   629,712      2.3%
Deposits                      609,519   637,207      -4.3%
Borrowings                    38,768    43,851       -11.6%
Total shareholders' equity    85,878    83,637       2.7%



Operating Ratios
                         Three Months Ended June 30, Six Months Ended June 30,
                         2013          2012          2013         2012
Return on average assets 1.07%         0.95%         1.10%        0.93%
Return on average common 9.94%         9.99%         10.50%       9.88%
equity
Interest rate spread     4.15%         4.09%         4.18%        4.11%
Net interest margin      4.26%         4.21%         4.29%        4.23%
Efficiency ratio         48.06%        47.36%        46.42%       43.15%



Asset Quality Data
                                         June 30, December 31,

                                         2013    2012
                                         (in thousands)
Allowance for loan losses                $ 20,867 $   18,936
Allowance for loan losses to total loans   3.24%      3.01%
Non-accrual loans                        $ 45,252 $   47,549
OREO                                     $ 23,669 $   26,057



Statements of Income Data
                         Three Months Ended June 30, Six Months Ended June 30,
                         2013            2012        2013       2012
                         (in thousands)
Interest and dividend    $     8,977     $     9,676    $  18,267   $  19,530
income
Interest expense         1,493           1,920          3,090        3,934
Net interest income      7,484           7,756          15,177       15,596
Provision for loan       1,000           2,050          2,000        4,300
losses
Net interest income
after provision for loan 6,484           5,706          13,177       11,296
losses
Non-interest income      1,311           531            1,960        1,614
Non-interest expense     4,227           3,990          7,955        7,497
Income before income     3,568           2,247          7,182        5,413
taxes
Provision for income     1,397           257            2,810        1,529
taxes
Net income attributable
to Company and           2,171           1,990          4,372        3,884
noncontrolling
(minority) interests
Net income attributable
to noncontrolling        (183)           (141)          (247)        (248)
(minority) interests
Net income attributable  1,988           1,849          4,125        3,636
to Company
Preferred stock dividend 256             253            510          504
and discount
Net income available to  1,732           1,596          3,615        3,132
common shareholders
Basic income per common  0.29            0.27           0.61         0.53
share
Diluted income per       0.29            0.27           0.61         0.53
common share
Weighted shares - basic  5,962,623       5,917,118      5,944,915    5,916,502
Weighted shares -        5,963,644       5,917,118      5,944,915    5,916,502
diluted

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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