Parke Bancorp, Inc. Announces a 26.2% Increase in Second Quarter Earnings
WASHINGTON TOWNSHIP, N.J., July 23, 2014
WASHINGTON TOWNSHIP, N.J., July 23, 2014 /PRNewswire/ -- Parke Bancorp, Inc.
("Parke Bancorp") (NASDAQ: PKBK), the parent company of Parke Bank, announced
its operating results for the quarter ended June 30, 2014.
Parke Bancorp reported net income available to common shareholders of $2.19
million, or $0.31 per diluted common share for the quarter ended June 30,
2014, compared to $1.73 million, or $0.29 per diluted common share, for the
quarter ended June 30, 2013, an increase of 26.2%. Net income available to
common shareholders year-to-date was $4.21 million or $0.70 per diluted common
share, compared to $3.62 million, or $0.61 per diluted common share, for the
six months ended June 30, 2013, an increase in net income of 16.5%.
The following is a recap of significant items that impacted the second quarter
of 2014 compared to the same quarter last year: a $850,000 increase in net
interest income, primarily attributable to higher loan volume and lower
deposit rates; a $180,000 increase in other fee income, primarily related to
the collection of loan prepayment fees; a $845,000 increase in OREO expense
which included a $500,000 loss reserve; a $101,000 decrease in professional
fees; and a $122,000 decrease in other operating expenses, related to impaired
loan expenses such as real estate taxes and insurance.
At June 30, 2014, Parke Bancorp's total assets increased to $819.26 million
from $794.94 million at December 31, 2013, an increase of $24.32 million, or
3.1%, primarily due to an increase in cash and cash equivalents.
Parke Bancorp's total loans increased to $658.40 million at June 30, 2014 from
$654.54 million at December 31, 2013, an increase of $3.86 million or 0.6%.
At June 30, 2014, Parke Bancorp had $33.15 million in nonperforming loans
representing 5.0% of total loans, a decrease from $35.95 million at December
31, 2013. OREO at June 30, 2014 was $24.16 million, compared to $28.91 million
at December 31, 2013. OREO consisted of 23 properties, the largest being a
condominium development in Absecon, NJ, recorded at $10.12 million. An
additional reserve of $500,000 was established against this property during
the quarter. During the six months ended June 30, 2014, the Company disposed
of 14 properties totaling $5.87 million, recognizing a gain of $250,000.
Nonperforming assets (consisting of nonperforming loans and OREO) represented
7.0% of total assets at June 30, 2014 as compared to 8.2% of total assets at
December 31, 2013. Loans past due 30 to 89 days were $1.66 million at June 30,
2014, a decrease of $1.00 million from the previous quarter end.
At June 30, 2014, Parke Bancorp's allowance for loan losses was $17.46
million, as compared to $18.56 million at December 31, 2013. The ratio of
allowance for loan losses to total loans was 2.7% at June 30, 2014 compared to
2.8% at December 31, 2013. The decrease is due to continuing improvements in
the credit quality of the loan portfolio. The ratio of allowance for loan
losses to non-performing loans improved to 52.7% at June 30, 2014, compared to
51.6% at December 31, 2013.
Parke Bancorp's total investment securities portfolio decreased to $32.53
million at June 30, 2014 from $37.80 million at December 31, 2013, a decrease
of $5.27 million or 13.9%. The decrease was primarily due to the sale of three
TruPS collateralized debt investment securities.
At June 30, 2014, Parke Bancorp's total deposits were $648.78 million, up from
$626.80 million at December 31, 2013, an increase of $21.98 million or 3.5%.
Parke Bancorp's total borrowings decreased to $64.10 million at June 30, 2014
from $68.68 million at December 31, 2013, a decrease of $4.58 million or 6.7%.
Total shareholders' equity increased to $98.04 million at June 30, 2014 from
$93.72 million at December 31, 2013, an increase of $4.32 million or 4.6%, 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 generated strong core earnings in the second quarter, with a 26.2%
increase while we remain committed to reducing our NPAs and delinquencies. The
financial performance and strength of our Company continues to improve, with
our capital position being close to three times the regulatory requirement of
a well-capitalized bank. Enhancing shareholder value is a focal point of our
Company and we are very proud that starting July 31, 2014, we will commence
paying a five cents per share quarterly cash dividend. Parke Bank is well
positioned to take advantage of opportunities in an improving economy and
banking environment. The hiring of additional staff for our lending team has
enabled us to expand our lending footprint, which will support the growth of
our loan portfolio. We still have work to do on reducing our troubled assets
and the expenses associated with those assets, but we are headed in the right
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: our ability to continue to generate
strong net interest income; continue to reduce our NPAs and delinquencies and
the expenses associated with them; take advantage of opportunities in the
improving economy and banking environment; our ability to continue to pay a
dividend in the future and our ability to continue to grow our loan portfolio,
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
Statements of Condition Data
June 30 December 31,
Total Assets $ 819,260 $ 794,943 3.1%
Cash and cash equivalents 69,748 45,661 52.8%
Investment securities 32,528 37,798 -13.9%
Loans, net of unearned income 658,395 654,541 0.6%
Deposits 648,783 626,798 3.5%
Borrowings 64,095 68,683 -6.7%
Total shareholders' equity 98,038 93,716 4.6%
Three Months Ended June 30, Six Months Ended June 30,
2014 2013 2014 2013
Return on average assets 1.23% 1.07% 1.21% 1.10%
Return on average common 11.24% 9.94% 11.16% 10.50%
Interest rate spread 4.28% 4.14% 4.31% 4.17%
Net interest margin 4.38% 4.25% 4.41% 4.28%
Efficiency ratio 48.96% 48.06% 49.25% 46.42%
Asset Quality Data
June 30, December 31,
Allowance for loan $ 17,459 $ 18,560
Allowance for loan 2.65% 2.84%
losses to total loans
Non-accrual loans $ 33,150 $ 35,954
OREO $ 24,156 $ 28,910
Statements of Income Data
Three Months Ended June 30, Six Months Ended June 30
2014 2013 2014 2013
Interest and dividend $ 9,736 $ 8,977 $ 19,343 $ 18,267
Interest expense 1,402 1,493 2,800 3,090
Net interest income 8,334 7,484 16,543 15,177
Provision for loan 1,000 1,000 2,000 2,000
Net interest income
after provision for loan 7,334 6,484 14,543 13,177
Non-interest income 1,659 1,311 2,617 1,960
Non-interest expense 4,894 4,227 9,437 7,955
Income before income 4,099 3,568 7,723 7,182
Provision for income 1,264 1,275 2,426 2,645
Net income attributable
to Company and 2,835 2,293 5,297 4,537
Net income attributable
to noncontrolling (349) (305) (486) (412)
Net income attributable 2,486 1,988 4,811 4,125
Preferred stock dividend 300 256 600 510
Net income available to 2,186 1,732 4,211 3,615
Basic income per common 0.36 0.29 0.70 0.61
Diluted income per 0.31 0.29 0.61 0.61
Weighted shares - basic 5,991,859 5,962,623 5,990,309 5,944,915
Weighted shares - 7,930,518 5,963,606 7,923,201 5,944,915
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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