PARKE BANCORP, INC. ANNOUNCES FIRST QUARTER 2026 EARNINGS
Rhea-AI Summary
Parke Bancorp (NASDAQ: PKBK) reported strong Q1 2026 results for the quarter ended March 31, 2026, with net income $11.8 million and diluted EPS of $0.99. Key profitability metrics improved: ROAA 2.19%, ROAE 14.47%, and NIM 4.17%. Net interest income rose to $22.1 million (+33.3% YoY).
Assets were $2.21 billion; loans increased modestly while deposits fell to $1.70 billion. Management cited loan yield growth, tight expense control (Efficiency Ratio 31.39%), and adequate capital and liquidity.
Positive
- Net income +52.3% YoY to $11.8 million
- Net interest income +33.3% YoY to $22.1 million
- NIM improved to 4.17%
- ROAE 14.47% and ROAA 2.19%
Negative
- Total deposits down 3.4% ($59.9 million)
- Cash and cash equivalents declined $46.0 million to $110.9 million
- Non-interest expense up 10.4% to $7.2 million
- Borrowings increased $10.0 million to $153.4 million
Key Figures
Market Reality Check
Peers on Argus
PKBK was modestly lower (-0.61%) ahead of the release, while key regional peers like FDBC (-2.44%), FRST (-1.28%), NECB (-0.93%), and TSBK (-0.95%) also traded down, with JMSB slightly up (+0.19%). No peers appeared in the momentum scanner and there were no same-day peer headlines, suggesting this earnings report is primarily a stock-specific catalyst rather than part of a broad momentum move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 22 | Quarterly earnings | Positive | +2.4% | Q4 2025 net income and net interest income rose versus prior year. |
| Oct 22 | Quarterly earnings | Positive | +3.4% | Q3 2025 net income and net interest income showed strong year-over-year growth. |
| Jul 16 | Quarterly earnings | Positive | +4.7% | Q2 2025 net income, loans, and deposits all increased versus 2024. |
| Apr 17 | Quarterly earnings | Positive | +1.8% | Q1 2025 net income and efficiency ratio improved with solid loan growth. |
| Jan 24 | Quarterly earnings | Negative | +0.6% | Q4 2024 net income declined year-over-year amid higher credit costs. |
Earnings releases have generally been followed by positive next-day moves, indicating the market has tended to reward Parke Bancorp’s reported growth and profitability trends.
Over the past five reported periods, Parke Bancorp has shown a steady earnings trajectory, with quarterly net income rising from $7.8M in Q1 2025 to $11.1M in Q4 2025. Each 2025 quarter highlighted stronger net interest income, expanding loans and deposits, and improving efficiency ratios. Even when Q4 2024 results showed year-over-year earnings pressure, the stock still posted a small positive reaction. Against this backdrop, the Q1 2026 report extends a pattern of profitability and balance-sheet growth.
Historical Comparison
Recent earnings releases produced an average move of about 2.57%, with markets typically reacting favorably to Parke Bancorp’s profit and balance-sheet growth.
Earnings since early 2025 show a progression of rising net income, improving efficiency ratios, and expanding loans and deposits, with Q4 2025 extending this trend that Q1 2026 now continues.
Market Pulse Summary
This announcement details strong Q1 2026 performance, with net income of $11.8M, diluted EPS of $0.99, and an improved net interest margin of 4.17%. Asset quality remains solid, with nonperforming loans at $9.2M and an efficiency ratio of 31.39%. Historically, PKBK’s earnings reports have been followed by modestly positive moves, but investors should watch deposit trends, credit costs, and management’s macro commentary in future quarters.
Key Terms
provision for credit losses financial
non-interest income financial
non-interest expense financial
efficiency ratio financial
nonperforming loans financial
other real estate owned ("OREO") financial
allowance for credit losses financial
bank owned life insurance ("BOLI") financial
AI-generated analysis. Not financial advice.
Highlights: | |
Net Income: | |
EPS (diluted): | |
ROAA: | |
ROAE: | |
NIM: |
Highlights for the three months ended March 31, 2026:
- Net income available to common shareholders was
$11.8 million $1.01 $0.99 $4.1 million 52.3% , compared to net income available to common shareholders of$7.8 million $0.66 $0.65 $5.5 million $0.4 million $0.7 million - Net interest income increased
$5.5 million 33.3% , to$22.1 million $16.6 million - The Company recorded a provision for credit losses of
$0.2 million $0.6 million - Non-interest income increased slightly by
$0.03 million 3.9% , to$0.85 million $0.82 million - Non-interest expense increased
$0.7 million 10.4% , to$7.2 million $6.5 million
The following is a recap of the significant items that impacted results of operations for the three months ended March 31, 2026:
Interest income increased
Interest expense decreased
The Company booked a provision for credit losses of
Non-interest income increased
Non-interest expense increased
Income tax expense increased
March 31, 2026 discussion of financial condition
- Total assets decreased to
$2.21 billion $2.25 billion $36.5 million 1.6% , primarily due to a decrease in cash and cash equivalents, partially offset by an increase in net loans. - Cash and cash equivalents totaled
$110.9 million $156.9 million New York ("FHLBNY") borrowings. - The investment securities portfolio decreased to
$13.1 million $13.5 million $0.4 million 2.9% , primarily due to pay downs of securities. - Gross loans increased
$8.1 million 0.4% , to$2.04 billion - Nonperforming loans at March 31, 2026 decreased to
$9.2 million 0.45% of total loans, a decrease of$1.6 million 14.9% , from$10.8 million $2.9 million 0.54% and0.61% of total assets at March 31, 2026 and December 31, 2025, respectively. Loans past due 30 to 89 days were$3.9 million $0.4 million - The allowance for credit losses was
$34.9 million $34.6 million 1.71% at March 31, 2026, and1.70% at December 31, 2025. The ratio of allowance for credit losses to non-performing loans was380.4% at March 31, 2026, compared to321.0% , at December 31, 2025. - Total deposits were
$1.70 billion $1.76 billion $59.9 million 3.4% , compared to December 31, 2025. The decrease in deposits was primarily driven by a decrease in non-interest bearing deposits of$32.4 million $24.0 million $14.0 million $12.6 million $22.6 million - Total borrowings increased
$10.0 million $153.4 million $143.4 million $10.0 million - Total equity increased to
$335.6 million $324.5 million $11.0 million 3.4% , 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:
"2026 has started off with many of the challenges in 2025 continuing, and in some instances worsening. The immigration crisis, no clear direction of interest rates, inflation remaining a serious concern, the
"Parke Bank had a pretty good first quarter in 2026. When comparing it to the first quarter of 2025, our Assets, Loans, Deposits and Shareholder Equity increased from the first quarter of 2025 to the first quarter of 2026. Net income for the first quarter of 2026 increased
"Parke Bank is well positioned to navigate the many challenges affecting the economy and the market, with strong capital, earnings, liquidity and continued tight control of expenses."
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, | |||||||
2026 | 2025 | |||||||
(Dollars in thousands) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 110,874 | $ | 156,863 | ||||
Investment securities | 13,126 | 13,523 | ||||||
Loans, net of unearned income | 2,043,296 | 2,035,227 | ||||||
Less: Allowance for credit losses | (34,921) | (34,649) | ||||||
Net loans | 2,008,375 | 2,000,578 | ||||||
Premises and equipment, net | 5,462 | 5,506 | ||||||
Bank owned life insurance (BOLI) | 35,541 | 35,320 | ||||||
Other assets | 39,557 | 37,646 | ||||||
Total assets | $ | 2,212,935 | $ | 2,249,436 | ||||
Liabilities and Equity | ||||||||
Non-interest bearing deposits | $ | 164,105 | $ | 196,506 | ||||
Interest bearing deposits | 1,342,975 | 1,346,834 | ||||||
Brokered Deposits | 191,664 | 215,329 | ||||||
FHLBNY borrowings | 140,000 | 130,000 | ||||||
Subordinated debentures | 13,403 | 13,403 | ||||||
Other liabilities | 25,225 | 22,846 | ||||||
Total liabilities | 1,877,372 | 1,924,918 | ||||||
Total shareholders' equity | 335,563 | 324,518 | ||||||
Total liabilities and equity | $ | 2,212,935 | $ | 2,249,436 | ||||
Table 2: Consolidated Income Statements (Unaudited) | ||||||||
Parke Bancorp, Inc. and Subsidiaries Consolidated Income Statement | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2026 | 2025 | |||||||
Interest income: | ||||||||
Interest and fees on loans | $ | 35,891 | $ | 31,476 | ||||
Interest and dividends on investments | 222 | 288 | ||||||
Interest on deposits with banks | 827 | 2,082 | ||||||
Total interest income | 36,940 | 33,846 | ||||||
Interest expense: | ||||||||
Interest on deposits | 13,428 | 15,169 | ||||||
Interest on borrowings | 1,380 | 2,070 | ||||||
Total interest expense | 14,808 | 17,239 | ||||||
Net interest income | 22,132 | 16,607 | ||||||
Provision for credit losses | 202 | 590 | ||||||
Net interest income after provision for credit losses | 21,930 | 16,017 | ||||||
Non-interest income | ||||||||
Service fees on deposit accounts | 289 | 308 | ||||||
Other loan fees | 161 | 178 | ||||||
Bank owned life insurance income | 220 | 165 | ||||||
Other | 183 | 170 | ||||||
Total non-interest income | 853 | 821 | ||||||
Non-interest expense | ||||||||
Compensation and benefits | 3,704 | 3,291 | ||||||
Professional services | 598 | 714 | ||||||
Occupancy and equipment | 761 | 687 | ||||||
Data processing | 317 | 421 | ||||||
FDIC insurance and other assessments | 373 | 350 | ||||||
OREO expense | 80 | 127 | ||||||
Other operating expense | 1,381 | 948 | ||||||
Total non-interest expense | 7,214 | 6,538 | ||||||
Income before income tax expense | 15,569 | 10,300 | ||||||
Income tax expense | 3,725 | 2,522 | ||||||
Net income attributable to Company | 11,844 | 7,778 | ||||||
Less: Preferred stock dividend | (5) | (5) | ||||||
Net income available to common shareholders | $ | 11,839 | $ | 7,773 | ||||
Earnings per common share | ||||||||
Basic | $ | 1.01 | $ | 0.66 | ||||
Diluted | $ | 0.99 | $ | 0.65 | ||||
Weighted average common shares outstanding | ||||||||
Basic | 11,706,574 | 11,836,384 | ||||||
Diluted | 11,903,776 | 12,006,965 | ||||||
Table 3: Operating Ratios (unaudited) | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2026 | 2025 | |||||||
Return on average assets | 2.19 | % | 1.48 | % | ||||
Return on average common equity | 14.47 | % | 10.36 | % | ||||
Interest rate spread | 3.34 | % | 2.32 | % | ||||
Net interest margin | 4.17 | % | 3.21 | % | ||||
Efficiency ratio* | 31.39 | % | 37.51 | % | ||||
* 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, | |||||||
2026 | 2025 | |||||||
(Amounts in thousands except ratio data) | ||||||||
Allowance for credit losses on loans | $ | 34,921 | $ | 34,649 | ||||
Allowance for credit losses to total loans | 1.71 | % | 1.70 | % | ||||
Allowance for credit losses to non-accrual loans | 380.40 | % | 321.00 | % | ||||
Non-accrual loans | $ | 9,181 | $ | 10,793 | ||||
OREO | $ | 2,862 | $ | 2,862 | ||||
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SOURCE Parke Bancorp, Inc.