Parke Bancorp, Inc. Announces A 7.6% Increase In First Quarter Earnings
WASHINGTON TOWNSHIP, N.J., April 23, 2014
WASHINGTON TOWNSHIP, N.J., April 23, 2014 /PRNewswire/ -- Parke Bancorp, Inc.
("Parke Bancorp") (NASDAQ: PKBK), the parent company of Parke Bank, announced
its operating results for the quarter ended March 31, 2014.
Parke Bancorp reported net income available to common shareholders of $2.03
million or $0.29 per diluted common share for the quarter ended March 31,
2014, compared to $1.88 million, or $0.32 per diluted common share, for the
quarter ended March 31, 2013, an increase of 7.6%.
The following is a recap of significant items that impacted the first quarter
of 2014 compared to the same quarter last year: a $513,000 increase in net
interest income primarily attributable to higher loan volume and lower deposit
rates; a $178,000 increase in the gain on the sale of investment securities; a
$185,000 increase in compensation and benefits expense due to increased
staffing and salary increases; and a $375,000 increase in OREO expense.
At March 31, 2014, Parke Bancorp's total assets were increased to $800.04
million from $794.94 million at December 31, 2013, an increase of $5.10
million, or 0.6%, from $794.94 million at December 31, 2013, primarily due to
an increase in loans available for sale.
Parke Bancorp's total loans decreased to $650.78 million at March 31, 2014
from $654.54 million at December 31, 2013, a decrease of $3.76 million or
At March 31, 2014, Parke Bancorp had $32.69 million in nonperforming loans
representing 5.0% of total loans, a decrease from $35.95 million at December
31, 2013. OREO at March 31, 2014 was $29.64 million, compared to $28.91
million at December 31, 2013. OREO consisted of 30 properties, the largest
being a condominium development recorded at $10.62 million. Nonperforming
assets (consisting of nonperforming loans and OREO) represented 7.8% of total
assets at March 31, 2014 as compared to 8.2% of total assets at December 31,
2013. Loans past due 30 to 89 days were $2.66 million at March 31, 2014, a
decrease of $1.01 million from the previous quarter end.
At March 31, 2014, Parke Bancorp's allowance for loan losses was $19.44
million, as compared to $18.56 million at December 31, 2013. The ratio of
allowance for loan losses to total loans was 3.0% at March 31, 2014 compared
to 2.8% at December 31, 2013. The increase is due to the establishment of a
$2.4 million specific reserve on a nonperforming residential mortgage loan
based on an updated appraisal. The ratio of allowance for loan losses to
non-performing loans improved to 59.5% at March 31, 2014, compared to 51.6% at
December 31, 2013.
Parke Bancorp's total investment securities portfolio decreased to $33.26
million at March 31, 2014 from $37.80 million at December 31, 2013, a decrease
of $4.54 million or 12.0%. The decrease was due to the sale of three TruPS
collateralized debt investment securities. Due to the recently enacted Volcker
Rule, financial institutions are no longer permitted to hold these securities
in portfolio. The sale generated a gain of $178,000.
At March 31, 2014, Parke Bancorp's total deposits were $633.45 million, up
from $626.80 million at December 31, 2013, an increase of $6.65 million or
Parke Bancorp's total borrowings decreased to $64.14 million at March 31, 2014
from $68.68 million at December 31, 2013, a decrease of $4.54 million or 6.6%.
Total shareholders' equity increased to $95.89 million at March 31, 2014 from
$93.72 million at December 31, 2013, an increase of $2.17 million or 2.3%, due
to the retention of earnings.
Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp and
Parke Bank, provided the following statement:
"The metrics of the Company continued to improve in the first quarter of 2014,
with close to an 8% increase in earnings, Net interest income increased
$513,000, cost of deposits declined, our non-performing assets declined by
nearly $3 million and our 30 to 89 days past due loans decreased by $1 million
to $2.66 million. Although we did not have any growth in our loan portfolio in
the first quarter, we are seeing increased activity in conventional and SBA
loan demand. Tim Cole, a seasoned loan officer has joined our lending team and
we are already seeing quality loans from Tim. We are cautiously optimistic
that the economy is continuing to stabilize, which we believe should support
company expansion and provide new lending opportunities."
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. Such forward-looking
statements are subject to risks and uncertainties which may cause actual
results to differ materially from those currently anticipated due to a number
of factors including but not limited to whether the economy continues to
stabilize and our ability to expand our lending opportunities and further
reduce our NPAs or to originate new loans 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 December 31,
Total Assets $ 800,035 $ 794,943 0.6%
Cash and cash equivalents 51,379 45,661 12.5%
Investment securities 33,260 37,798 -12.0%
Loans, net of unearned income 650,780 654,541 -0.6%
Deposits 633,453 626,798 1.1%
Borrowings 64,139 68,683 -6.6%
Total shareholders' equity 95,889 93,716 2.3%
Three Months Ended
Return on average assets 1.19% 1.13%
Return on average common equity 11.08% 11.07%
Interest rate spread 4.34% 4.13%
Net interest margin 4.53% 4.33%
Efficiency ratio 49.55% 44.69%
Asset Quality Data
March 31, December 31,
Allowance for loan losses $ 19,438 $ 18,560
Allowance for loan losses to total loans 2.99% 2.84%
Non-accrual loans $ 32,694 $ 35,954
OREO $ 29,642 $ 28,910
Statements of Income Data
Three Months Ended March 31,
Interest and dividend income $ 9,606 $ 9,292
Interest expense 1,398 1,597
Net interest income 8,208 7,695
Provision for loan losses 1,000 1,000
Net interest income after provision for loan 7,208 6,695
Non-interest income 960 647
Non-interest expense 4,543 3,728
Income before income taxes 3,625 3,614
Provision for income taxes 1,162 1,370
Net income attributable to Company and 2,463 2,244
noncontrolling (minority) interests
Net income attributable to noncontrolling (137) (107)
Net income attributable to Company 2,326 2,137
Preferred stock dividend and discount 300 254
Net income available to common shareholders 2,026 1,883
Basic income per common share 0.34 0.32
Diluted income per common share 0.29 0.32
Weighted shares - basic 5,988,742 5,927,010
Weighted shares - diluted 7,916,564 5,930,217
SOURCE Parke Bancorp, Inc.
Contact: Vito S. Pantilione, President and CEO or John F. Hawkins, Senior Vice
President and CFO (856) 256-2500
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