WASHINGTON TOWNSHIP, NJ, October 31, 2011 – Parke Bancorp, Inc. (“Parke Bancorp”) (NASDAQ: “PKBK”), the parent company of Parke Bank, announces its operating results forthequarter ended September 30, 2011.
Parke Bancorp reported net income available to common shareholders of $1.32 million, or $0.27 per diluted common share, for the September 30, 2011 quarter, compared to net income of $1.58 million, or $0.32 per diluted common share, reported forthequarter ended September 30, 2010, a decrease of 16.6%. The following is a recap of significant items that impactedthethird quarter of 2011 compared tothesame quarter last year: a $297,000 increase in net interest income primarily attributable to a lower cost of deposits; a $116,000 increase in gain on sale of loans recorded bytheBank’s SBA joint venture, of whichtheBank owns 51%; a $250,000 increase intheloan loss provision; a $243,000 increase in salary expense attributable to annual increases and additional staffing. In addition,theCompany wrote-downthecarrying value of OREO by $480,000 due to signed agreement of sales and deterioration of real estate values in our region. Net income available to common shareholders year-to-date was $5.26 million or $1.05 per diluted common share, compared to $4.89 million, or $0.98 per diluted common share, reported forthenine months ended September 30, 2010, an increase of 7.6%.
At September 30, 2011, Parke Bancorp’s total assets increased to $767.0 million from $756.9 million at December 31, 2010, an increase of $10.2 million or 1.3%.
Parke Bancorp’s total loans increased to $638.2 million from $626.7 million at December 31, 2010, an increase of $11.5 million or 1.8%.
At September 30, 2011, Parke Bancorp had $38.8 million in non-performing loans representing 5.1% of total assets, an increase from $27.4 million at December 31, 2010. Loans past due 30 to 89 days were $4.5 million at September 30, 2011, a decrease of $11.4 million from December 31, 2010 and an increase of $1.2 million from June 30, 2011.
At September 30, 2011, Parke Bancorp’s allowance for loan losses was $16.5 million. The ratio of allowance for loan losses to total loans increased to 2.6% at September 30, 2011 from 2.4% at December 31, 2010. During thequarter Parke Bancorp charged-off $2.4 million in loans, primarily due to estimated collateral deficiencies on impaired loans. The ratio of allowance for loan losses to non-performing loans was 42.5% at September 30, 2011, compared to 53.9% at December 31, 2010.
Parke Bancorp’s total investment securities portfolio decreased to $26.4 million from $29.7 million at December 31, 2010, a decrease of $3.3 million or 11.1%.
OREO at September 30, 2011 was $18.2 million, compared to $16.7 million at December 31, 2010. The real estate owned consisted of 13 properties,thelargest being a condominium development recorded at $12.3 million. This property was sold and financed by Parke Bank in 2010 but does not qualify for a sales treatment under Generally Accepted Accounting Principles (GAAP).
At September 30, 2011, Parke Bancorp’s total deposits increased to $622.0 million from $604.7 million at December 31, 2010, an increase of $2.8 million or 2.9%.
Parke Bancorp’s total borrowings decreased to $64.0 million from $75.6 million at December 31, 2010, a decrease of $11.6 million or 15.3%.
Parke Bancorp’s total equity increased to $76.3 million at September 30, 2011 from $70.7 million at December 31, 2010, an increase of $5.6 million or 7.9%.
Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp and Parke Bank, providedthefollowing statement:
“We continue to generate very strong earnings through very tight controls on our expenses and a robust net interest margin. Our year to date net income increased 8% over the same period last year, which was a record year for Parke Bank earnings. The real estate market remains a major challenge to the economy and our Bank. We have made substantial progress on working out the challenges in our loan portfolio; however, we still have work to do. The struggling economy combined with the regulatory environment makes it very difficult to work through challenging assets and generate new loans for our bank. Despite this, we are proud that Parke Bank continues to generate a double digit return to our shareholders, 11.91% through the first three quarters of 2011.”
Parke Bancorp, Inc. was incorporated in January 2005 while Parke Bank commenced operations in January 1999. Parke Bancorp and Parke Bank maintaintheir principal offices at601 Delsea Drive,Washington Township,New Jersey. Parke Bank conducts business through a branch office inNorthfield,New Jersey, two branch offices inWashington Township,New Jersey, a branch office inGalloway Township,New Jerseyand a branch in center cityPhiladelphia. 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 inGloucester, Atlantic and Cape May counties inNew JerseyandPhiladelphiaand surrounding counties inPennsylvania. Parke Bank’s deposits are insured up tothemaximum legal amount bytheFederal Deposit Insurance Corporation (FDIC). Parke Bancorp’s common stock is traded ontheNASDAQ Capital Market underthesymbol “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.