PARKE BANCORP, INC. ANNOUNCES FIRST QUARTER 2025 EARNINGS
Rhea-AI Summary
Parke Bancorp (NASDAQ: PKBK) reported strong Q1 2025 financial results with net income of $7.8 million, representing a 26.5% increase from Q1 2024 and 5.12% increase from Q4 2024. Earnings per share reached $0.66 basic and $0.65 diluted.
Key financial metrics include:
- Revenue increased 0.6% to $34.7 million
- Net interest income grew 18.2% to $16.6 million
- Total assets remained stable at $2.14 billion
- Total loans increased 0.8% to $1.88 billion
- Deposits grew 2.2% to $1.67 billion
The bank's efficiency ratio improved to 37.1% from 43.2% in Q1 2024. Asset quality remained strong with nonperforming loans decreasing to $11.1 million, representing 0.59% of total loans. The allowance for credit losses ratio stood at 1.76%.
Positive
- Net income increased 26.5% year-over-year to $7.8 million
- Net interest income grew 18.2% to $16.6 million
- Deposits increased 2.2% to $1.67 billion
- Efficiency ratio improved to 37.1% from 43.2%
- Nonperforming loans decreased to 0.59% of total loans
Negative
- Non-interest income decreased 22.7% to $0.8 million
- Provision for credit losses increased to $0.6 million from $0.2 million
- Past due loans (30-89 days) increased by $2.0 million
News Market Reaction
On the day this news was published, PKBK gained 1.77%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Highlights: | ||||
Net Income: | ||||
Revenue: | ||||
Total Assets: | ||||
Total Loans: | ||||
Total Deposits: | ||||
Highlights for the three months ended March 31, 2025:
- Net income available to common shareholders was
$7.8 million $0.66 $0.65 $1.6 million 26.5% , compared to net income available to common shareholders of$6.1 million $0.51 $0.51 $2.6 million $0.4 million $0.2 million $0.3 million - Net interest income increased
$2.6 million 18.2% , to$16.6 million $14.1 million - The Company recorded a provision for credit losses of
$0.6 million $0.2 million - Non-interest income decreased
$0.2 million 22.7% , to$0.8 million $1.1 million - Non-interest expense was flat at
$6.5 million $6.5 million
The following is a recap of the significant items that impacted the three months ended March 31, 2025:
Interest income increased
Interest expense increased
The Company booked a provision for credit losses of
Non-interest income decreased
Non-interest expense remained flat for the three months ended March 31, 2025, compared to the same period in 2024, at
Income tax expense increased
March 31, 2025 discussion of financial condition
- Total assets were unchanged at
$2.14 billion - Cash and cash equivalents totaled
$209.0 million $221.5 million New York ("FHLBNY") borrowings, partially offset by an increase in deposits. - The investment securities portfolio decreased to
$14.3 million $14.8 million $0.4 million 2.8% , primarily due to pay downs of securities. - Gross loans increased
$15.0 million 0.8% , to$1.88 billion - Nonperforming loans at March 31, 2025 decreased to
$11.1 million 0.59% of total loans, a decrease of$0.7 million 5.6% , from$11.8 million $1.6 million 0.59% and0.62% of total assets at March 31, 2025 and December 31, 2024, respectively. Loans past due 30 to 89 days were$3.1 million $2.0 million - The allowance for credit losses was
$33.1 million $32.6 million 1.76% at March 31, 2025, and1.74% at December 31, 2024. The ratio of allowance for credit losses to non-performing loans was297.5% at March 31, 2025, compared to276.5% , at December 31, 2024. - Total deposits were
$1.67 billion $1.63 billion $35.6 million 2.2% compared to December 31, 2024. The increase in deposits was primarily driven by an increase in money market deposits of$128.4 million $88.9 million - Total borrowings decreased
$40.0 million $148.3 million $188.3 million $40.0 million - Total equity increased to
$305.9 million $300.1 million $5.9 million 2.0% , primarily due to the retention of earnings, partially offset by the payment of$2.1 million
CEO outlook and commentary
Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, provided the following statement:
"2025 started off with President Trump being sworn in as the 47th President, quickly followed by his administration making sweeping economic changes in the country and the world. The effect these changes will have on the economy and banking are still a question mark. The Feds started out the year by indicating they believe there will be two rate cuts in 2025, however, they also forecasted 6 rate cuts in 2024 and there were only 3."
"Implementation of President Trump's promised across the board tariffs put the stock market in turmoil, quickly plunging the market into bear territory, followed by one of the biggest one-day gains when a 90 day pause in the tariffs was announced. During the market plunge there was a lot of discussion of a possible, with some saying a probable, recession in 2025. The Feds voiced concern that they may need to accelerate lowering interest rates due to recession concerns. As expected, the tariff pause has now caused a mixture of "expert" opinions ranging from now avoiding a recession to others believing there would still be a recession in 2025. There is no clear picture of the economic future. Parke Bank had good financial results in the first quarter of 2025. Net Income was
"ParkeBank is well positioned to navigate the challenging economic volatility with tight control of our expenses, strong capital, and management of our asset quality."
Forward Looking Statement Disclaimer
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; our ability to maintain a strong capital base, strong earning and strict cost controls; our ability to generate strong revenues with increased interest income and net interest income; our ability to continue the financial strength and growth of our loan portfolio; our ability to continue to increase shareholders' equity, maintain strong loan underwriting and allowance for credit losses; our ability to react quickly to any increase in loan delinquencies; our ability to face current challenges in the market; our ability to be well positioned navigate the challenging economic volatility; our ability to continue to reduce our nonperforming loans and delinquencies and the expenses associated with them; our ability to increase the rate of growth of our loan portfolio; our ability to continue to improve net interest margin; our ability to enhance shareholder value in the future; our ability to continue growing our Company, our earnings and shareholders' equity; the possibility of additional corrective actions or limitations on the operations of the Company. and Parke Bank being imposed by banking regulators, therefore, readers should not place undue reliance on any forward-looking statements. The Company 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.
(PKBK-ER)
Financial Supplement:
Table 1: Condensed Consolidated Balance Sheets (Unaudited)
Parke Bancorp, Inc. and Subsidiaries | |||
Condensed Consolidated Balance Sheets | |||
March 31, | December 31, | ||
2025 | 2024 | ||
(Dollars in thousands) | |||
Assets | |||
Cash and cash equivalents | $ 209,036 | $ 221,527 | |
Investment securities | 14,340 | 14,760 | |
Loans, net of unearned income | 1,883,175 | 1,868,153 | |
Less: Allowance for credit losses | (33,091) | (32,573) | |
Net loans | 1,850,084 | 1,835,581 | |
Premises and equipment, net | 5,597 | 5,316 | |
Bank owned life insurance (BOLI) | 29,235 | 29,070 | |
Other assets | 33,563 | 35,983 | |
Total assets | $ 2,141,855 | $ 2,142,236 | |
Liabilities and Equity | |||
Non-interest bearing deposits | $ 185,348 | $ 184,037 | |
Interest bearing deposits | 1,481,333 | 1,447,013 | |
FHLBNY borrowings | 105,000 | 145,000 | |
Subordinated debentures | 43,348 | 43,300 | |
Other liabilities | 20,884 | 22,813 | |
Total liabilities | 1,835,913 | 1,842,163 | |
Total shareholders' equity | 305,942 | 300,073 | |
Total liabilities and equity | $ 2,141,855 | $ 2,142,236 | |
Table 2: Consolidated Income Statements (Unaudited)
Parke Bancorp, Inc. and Subsidiaries | |||
Consolidated Income Statement | |||
For the three months | |||
2025 | 2024 | ||
(Dollars in thousands, | |||
Interest income: | |||
Interest and fees on loans | $ 31,476 | $ 28,083 | |
Interest and dividends on investments | 288 | 249 | |
Interest on deposits with banks | 2,082 | 1,145 | |
Total interest income | 33,846 | 29,477 | |
Interest expense: | |||
Interest on deposits | 15,169 | 13,457 | |
Interest on borrowings | 2,070 | 1,966 | |
Total interest expense | 17,239 | 15,423 | |
Net interest income | 16,607 | 14,054 | |
Provision for credit losses | 590 | 204 | |
Net interest income after provision for credit losses | 16,017 | 13,850 | |
Non-interest income | |||
Service fees on deposit accounts | 308 | 379 | |
Other loan fees | 178 | 238 | |
Bank owned life insurance income | 165 | 160 | |
Other | 170 | 285 | |
Total non-interest income | 821 | 1,062 | |
Non-interest expense | |||
Compensation and benefits | 3,291 | 3,218 | |
Professional services | 714 | 445 | |
Occupancy and equipment | 687 | 641 | |
Data processing | 421 | 366 | |
FDIC insurance and other assessments | 350 | 331 | |
OREO expense | 127 | 353 | |
Other operating expense | 948 | 1,181 | |
Total non-interest expense | 6,538 | 6,535 | |
Income before income tax expense | 10,300 | 8,377 | |
Income tax expense | 2,522 | 2,226 | |
Net income attributable to Company | 7,778 | 6,151 | |
Less: Preferred stock dividend | (5) | (6) | |
Net income available to common shareholders | $ 7,773 | $ 6,145 | |
Earnings per common share | |||
Basic | $ 0.66 | $ 0.51 | |
Diluted | $ 0.65 | $ 0.51 | |
Weighted average common shares outstanding | |||
Basic | 11,836,384 | 11,958,776 | |
Diluted | 12,006,965 | 12,138,613 | |
Table 3: Operating Ratios (unaudited)
Three months ended | |||
March 31, | |||
2025 | 2024 | ||
Return on average assets | 1.48 % | 1.27 % | |
Return on average common equity | 10.36 % | 8.60 % | |
Interest rate spread | 2.32 % | 2.24 % | |
Net interest margin | 3.21 % | 3.21 % | |
Efficiency ratio* | 37.51 % | 43.23 % | |
* Efficiency ratio is calculated using non-interest expense divided by the sum of net interest income and non-interest income. |
Table 4: Asset Quality Data (unaudited)
March 31, | December 31, | ||
2025 | 2024 | ||
(Amounts in thousands except ratio data) | |||
Allowance for credit losses on loans | $ 33,091 | $ 32,573 | |
Allowance for credit losses to total loans | 1.76 % | 1.74 % | |
Allowance for credit losses to non-accrual loans | 297.53 % | 276.46 % | |
Non-accrual loans | $ 11,122 | $ 11,782 | |
OREO | $ 1,562 | $ 1,562 | |
View original content:https://www.prnewswire.com/news-releases/parke-bancorp-inc-announces-first-quarter-2025-earnings-302430408.html
SOURCE Parke Bancorp, Inc.
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