Parke Bancorp, Inc. Announces A 20.6% Increase In Quarterly Earnings, A 17.1% Increase Year-To-Date

Parke Bancorp, Inc. Announces A 20.6% Increase In Quarterly Earnings, A 17.1%
                            Increase Year-To-Date

PR Newswire

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

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

Parke Bancorp reported net income available to common shareholders of $1.77
million, or $0.30 per diluted common share, for the quarter ended September
30, 2013, compared to net income of $1.47 million, or $0.25 per diluted common
share, for the quarter ended September 30, 2012, an increase of 20.6%. The
following is a recap of other significant items that impacted the third
quarter of 2013 compared to the same quarter last year: a $370,000 increase in
net interest income primarily attributable to higher loan volumes and lower
deposit volumes; a $57,000 increase in gain on sale of SBA loans; a $79,000
decrease in loss on other real estate owned ("OREO"); increased compensation
and benefits expense of $238,000 resulting from additional staff, salary
increases and increased benefit costs; a $168,000 increase in professional
services expenses primarily due to legal expenses associated with
nonperforming loans; a $1.30 million decrease in the provision for loan
losses; and a $1.68 million increase in OREO expense which includes the
establishment of a $1.20 million reserve for OREO loss. Net income available
to common shareholders year-to-date was $5.38 million or $0.90 per diluted
common share, compared to $4.60 million, or $0.78 per diluted common share,
for the nine months ended September 30, 2012, an increase of 17.1%.

At September 30, 2013, Parke Bancorp's total assets had decreased to $747.13
million from $770.48 million at December 31, 2012, a decrease of $23.35
million, or 3.0%, due to a decline in cash and cash equivalents, partially
offset by an increase in loans.

Parke Bancorp's total loans increased to $660.67 million at September 30, 2013
from $629.71 million at December 31, 2012, an increase of $30.96 million or
4.9%.

At September 30, 2013, Parke Bancorp had $41.10 million in nonperforming loans
representing 6.2% of total loans, a decrease from $47.55 million at December
31, 2012. OREO at September 30, 2013 was $27.87 million, compared to $26.06
million at December 31, 2012. OREO consisted of 24 properties, the largest
being a condominium development recorded at $11.83 million. Nonperforming
assets (consisting of nonperforming loans and OREO) represented 9.2% of total
assets at September 30, 2013 as compared to 9.6% of total assets at December
31, 2012. Loans past due 30 to 89 days were $2.82 million at September 30,
2013, a decrease of $2.80 million from the previous quarter.

At September 30, 2013, Parke Bancorp's allowance for loan losses was $19.68
million. The ratio of allowance for loan losses to total loans was 3.0% at
September 30, 2013 and December 31, 2012. The ratio of allowance for loan
losses to non-performing loans was 47.9% at September 30, 2013, compared to
39.8% at December 31, 2012.

Parke Bancorp's total investment securities portfolio decreased to $18.67
million at September 30, 2013 from $21.41 million at December 31, 2012, a
decrease of $2.74 million or 12.8%.

At September 30, 2013, Parke Bancorp's total deposits were $611.42 million,
down from $637.21 million at December 31, 2012, a decrease of $25.79 million
or 4.0%.

Parke Bancorp's total borrowings decreased to $43.73 million at September 30,
2013 from $43.85 million at December 31, 2012, a decrease of $126,000 or 0.3%.

Total shareholders' equity increased to $87.75 million at September 30, 2013
from $83.64 million at December 31, 2012, an increase of $4.11 million or
4.9%, 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 the double digit increase in earnings for our third
quarter 2013 comparison to the third quarter of 2012, and the increase in 2013
year-to-date earnings as compared to the same period in 2012. Our net interest
margin remains strong, even though interest rates have remained very low. Our
metrics are improving, including our nonperforming loans and our 30 to 89 day
delinquencies. Although we have a way to go we believe we are heading in the
right direction. We continue to be very diligent in reflecting changes in the
nonperforming asset values on our balance sheet, while continuing to work very
hard on liquidating these nonperforming loans. Our loan growth has improved in
2013, which helps provide additional interest income and fees. Parke Bancorp's
capital continues to grow, up 4.9% since yearend, providing additional
strength to our balance sheet, which helps to position us to be able to take
advantage of opportunities when they arise. We continue to work hard to
control expenses, enhancing shareholder value."

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, December 31,
                                                         % Change
                              2013          2012
                              (in thousands)
Total Assets                  $   747,129   $   770,477  -3.0%
Cash and cash equivalents     21,566        76,866       -71.9%
Investment securities         18,666        21,406       -12.8%
Loans, net of unearned income 660,670       629,712      4.9%
Deposits                      611,416       637,207      -4.0%
Borrowings                    43,725        43,851       -0.3%
Total shareholders' equity    87,747        83,637       4.9%



Operating Ratios
                                Three Months Ended Nine Months Ended

                                September 30,      September 30,
                                2013      2012     2013     2012
Return on average assets        1.09%     0.89%    1.10%    0.92%
Return on average common equity 10.01%    8.94%    10.33%   9.56%
Interest rate spread            4.25%     3.85%    4.21%    4.03%
Net interest margin             4.35%     3.96%    4.31%    4.15%
Efficiency ratio                59.24%    42.06%   50.87%   43.08%



Asset Quality Data
                                         September 30, December 31,

                                         2013         2012
                                         (in thousands)
Allowance for loan losses                $    19,680   $   18,936
Allowance for loan losses to total loans      2.98%        3.01%
Non-accrual loans                        $    41,100   $   47,549
OREO                                     $    27,871   $   26,057



Statements of Income Data
                                       Three Months Ended  Nine Months Ended

                                       September 30,       September 30,
                                       2013      2012      2013      2012
                                       (in thousands)
Interest and dividend income           $  9,008  $  9,084  $  27,275 $  28,615
Interest expense                       1,340     1,786     4,431     5,720
Net interest income                    7,668     7,298     22,844    22,895
Provision for loan losses              200       1,500     2,200     5,800
Net interest income after provision    7,468     5,798     20,644    17,095
for loan losses
Non-interest income                    1,459     952       3,419     2,567
Non-interest expense                   5,407     3,470     13,361    10,968
Income before income taxes             3,520     3,280     10,702    8,694
Provision for income taxes             1,377     1,365     4,187     2,895
Net income attributable to Company and 2,143     1,915     6,515     5,799
noncontrolling (minority) interests
Net income attributable to             (110)     (194)     (358)     (442)
noncontrolling (minority) interests
Net income attributable to Company     2,033     1,721     6,157     5,357
Preferred stock dividend and discount  263       253       773       758
Net income available to common         1,770     1,468     5,384     4,599
shareholders
Basic income per common share          0.30      0.25      0.90      0.78
Diluted income per common share        0.30      0.25      0.90      0.78
Weighted shares - basic                5,982,810 5,925,219 5,957,685 5,919,429
Weighted shares - diluted              5,989,183 5,925,219 5,958,801 5,919,429



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, both at (856) 256-2500
 
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