PARKE BANCORP, INC. ANNOUNCES SECOND QUARTER 2025 EARNINGS
Parke Bancorp (NASDAQ:PKBK) reported strong Q2 2025 financial results, with net income of $8.3 million, up 28.3% from Q2 2024. The bank achieved earnings per share of $0.70 basic and $0.69 diluted for Q2 2025.
Key financial metrics include total assets of $2.17 billion (up 1.3% from December 2024), total loans of $1.93 billion (up 3.6%), and total deposits of $1.69 billion (up 3.8%). Net interest income increased by $3.6 million or 24.9% to $17.9 million in Q2 2025.
The bank maintained strong asset quality with nonperforming loans at $11.2 million (0.58% of total loans) and an allowance for credit losses ratio of 1.75%. The efficiency ratio improved to 36.60% from 41.69% year-over-year.
Parke Bancorp (NASDAQ:PKBK) ha riportato solidi risultati finanziari per il secondo trimestre 2025, con un utile netto di 8,3 milioni di dollari, in crescita del 28,3% rispetto al secondo trimestre 2024. La banca ha registrato un utile per azione di 0,70 dollari base e 0,69 diluito nel secondo trimestre 2025.
I principali indicatori finanziari includono attività totali per 2,17 miliardi di dollari (in aumento dell'1,3% rispetto a dicembre 2024), prestiti totali per 1,93 miliardi di dollari (in crescita del 3,6%) e depositi totali per 1,69 miliardi di dollari (in aumento del 3,8%). Il reddito netto da interessi è salito di 3,6 milioni di dollari, ovvero del 24,9%, raggiungendo 17,9 milioni nel secondo trimestre 2025.
La banca ha mantenuto una solida qualità degli attivi con prestiti in sofferenza pari a 11,2 milioni di dollari (0,58% del totale prestiti) e un rapporto di accantonamento per perdite su crediti del 1,75%. Il rapporto di efficienza è migliorato al 36,60% rispetto al 41,69% dell'anno precedente.
Parke Bancorp (NASDAQ:PKBK) reportó sólidos resultados financieros en el segundo trimestre de 2025, con un ingreso neto de 8,3 millones de dólares, un aumento del 28,3% respecto al segundo trimestre de 2024. El banco logró un beneficio por acción de 0,70 dólares básico y 0,69 diluido en el segundo trimestre de 2025.
Las métricas financieras clave incluyen activos totales de 2,17 mil millones de dólares (un 1,3% más que en diciembre de 2024), préstamos totales de 1,93 mil millones de dólares (un 3,6% más) y depósitos totales de 1,69 mil millones de dólares (un 3,8% más). El ingreso neto por intereses aumentó 3,6 millones de dólares, o un 24,9%, hasta 17,9 millones en el segundo trimestre de 2025.
El banco mantuvo una sólida calidad de activos con préstamos morosos de 11,2 millones de dólares (0,58% del total de préstamos) y una provisión para pérdidas crediticias del 1,75%. El índice de eficiencia mejoró al 36,60% desde el 41,69% interanual.
Parke Bancorp (NASDAQ:PKBK)는 2025년 2분기에 순이익 830만 달러를 기록하며 2024년 2분기 대비 28.3% 증가한 강력한 재무 성과를 발표했습니다. 은행은 2025년 2분기에 기본 주당순이익 0.70달러, 희석 주당순이익 0.69달러를 달성했습니다.
주요 재무 지표로는 총자산 21억 7천만 달러(2024년 12월 대비 1.3% 증가), 총대출 19억 3천만 달러(3.6% 증가), 총예금 16억 9천만 달러(3.8% 증가)가 포함됩니다. 순이자수익은 360만 달러(24.9%) 증가하여 2분기에 1,790만 달러를 기록했습니다.
은행은 부실대출 1,120만 달러(총대출의 0.58%)과 대손충당금 비율 1.75%로 견고한 자산 건전성을 유지했습니다. 효율성 비율은 전년 동기 대비 41.69%에서 36.60%로 개선되었습니다.
Parke Bancorp (NASDAQ:PKBK) a annoncé de solides résultats financiers pour le deuxième trimestre 2025, avec un revenu net de 8,3 millions de dollars, en hausse de 28,3 % par rapport au deuxième trimestre 2024. La banque a réalisé un bénéfice par action de 0,70 dollar de base et 0,69 dilué pour le deuxième trimestre 2025.
Les principaux indicateurs financiers comprennent un total d’actifs de 2,17 milliards de dollars (en hausse de 1,3 % depuis décembre 2024), des prêts totaux de 1,93 milliard de dollars (en hausse de 3,6 %) et des dépôts totaux de 1,69 milliard de dollars (en hausse de 3,8 %). Le revenu net d’intérêts a augmenté de 3,6 millions de dollars, soit 24,9 %, pour atteindre 17,9 millions au deuxième trimestre 2025.
La banque a maintenu une bonne qualité d’actifs avec des prêts non performants de 11,2 millions de dollars (0,58 % du total des prêts) et un ratio de provision pour pertes sur prêts de 1,75 %. Le ratio d’efficacité s’est amélioré à 36,60 % contre 41,69 % l’année précédente.
Parke Bancorp (NASDAQ:PKBK) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 8,3 Millionen US-Dollar, was einem Anstieg von 28,3 % gegenüber dem zweiten Quartal 2024 entspricht. Die Bank erzielte im zweiten Quartal 2025 ein Ergebnis je Aktie von 0,70 US-Dollar unverwässert und 0,69 US-Dollar verwässert.
Wichtige Finanzkennzahlen umfassen Gesamtvermögen von 2,17 Milliarden US-Dollar (Anstieg um 1,3 % gegenüber Dezember 2024), Gesamtkredite von 1,93 Milliarden US-Dollar (plus 3,6 %) und Gesamteinlagen von 1,69 Milliarden US-Dollar (plus 3,8 %). Das Nettozinseinkommen stieg um 3,6 Millionen US-Dollar bzw. 24,9 % auf 17,9 Millionen US-Dollar im zweiten Quartal 2025.
Die Bank hielt eine starke Vermögensqualität mit notleidenden Krediten von 11,2 Millionen US-Dollar (0,58 % der Gesamtkredite) und einer Rückstellung für Kreditverluste von 1,75 %. Die Effizienzquote verbesserte sich im Jahresvergleich von 41,69 % auf 36,60 %.
- Net income increased 28.3% to $8.3 million in Q2 2025 compared to Q2 2024
- Net interest income grew 24.9% to $17.9 million year-over-year
- Loan portfolio expanded 3.6% to $1.93 billion from December 2024
- Total deposits increased 3.8% to $1.69 billion from December 2024
- Efficiency ratio improved to 36.60% from 41.69% year-over-year
- Nonperforming loans decreased 4.9% to $11.2 million from December 2024
- Past due loans (30-89 days) increased significantly to $16.9 million, up $15.5 million from December 2024
- Non-interest income decreased 32% to $0.8 million year-over-year
- Provision for credit losses doubled to $1.0 million from $0.5 million in Q2 2024
- Non-interest expense increased 7.1% to $6.7 million year-over-year
Insights
Parke Bancorp reports strong Q2 2025 results with 28.3% YoY net income growth driven by expanded loan portfolio and higher interest rates.
Parke Bancorp has delivered impressive Q2 2025 results with
The bank's loan portfolio grew to
Deposit growth of
Asset quality metrics remain relatively stable, with non-performing loans decreasing
The bank maintains an industry-leading efficiency ratio of
The increased loan loss provision (
Highlights: | |
Net Income: | |
Revenue: | |
Total Assets: | |
Total Loans: | |
Total Deposits: |
Highlights for the three and six months ended June 30, 2025:
- Net income available to common shareholders was
$8.3 million $0.70 $0.69 $1.8 million 28.3% , compared to net income available to common shareholders of$6.5 million $0.54 $0.53 $3.6 million $0.5 million $0.4 million $0.4 million - Net interest income increased
$3.6 million 24.9% , to$17.9 million $14.3 million - The Company recorded a provision for credit losses of
$1.0 million $0.5 million - Non-interest income decreased
$0.4 million 32.0% , to$0.8 million $1.2 million - Non-interest expense increased
$0.4 million 7.1% , to$6.7 million $6.2 million - Net income available to common shareholders was
$16.1 million $1.36 $1.34 $3.5 million 27.4% , compared to net income available to common shareholders of$12.6 million $1.05 $1.04 $6.1 million $0.9 million $0.6 million $0.4 million - Net-interest income increased
$6.1 million 21.6% , to$34.5 million $28.4 million - The Company recorded a provision for credit losses of
$1.6 million $0.7 million - Non-interest income decreased
$0.6 million 27.7% , to$1.6 million $2.3 million - Non-interest expense increased
$0.4 million 3.5% , to$13.2 million $12.8 million
The following is a recap of the significant items that impacted the three and six months ended June 30, 2025:
Interest income increased
Interest expense increased
The Company booked a provision for credit losses of
Non-interest income decreased
Non-interest expense increased
Income tax expense increased
June 30, 2025 discussion of financial condition
- Total assets increased to
$2.17 billion $2.14 billion $28.1 million 1.3% , primarily due to an increase in net loans, partially offset by a decrease in cash and cash equivalents. - Cash and cash equivalents totaled
$184.3 million $221.5 million New York ("FHLBNY") borrowings, partially offset by an increase in deposits. - The investment securities portfolio decreased to
$14.0 million $14.8 million $0.8 million 5.1% , primarily due to pay downs of securities. - Gross loans increased
$66.6 million 3.6% , to$1.93 billion - Nonperforming loans at June 30, 2025 decreased to
$11.2 million 0.58% of total loans, a decrease of$0.6 million 4.9% , from$11.8 million $1.6 million 0.59% and0.62% of total assets at June 30, 2025 and December 31, 2024, respectively. Loans past due 30 to 89 days were$16.9 million $15.5 million $11.7 million $2.5 million $11.7 million - The allowance for credit losses was
$33.8 million $32.6 million 1.75% at June 30, 2025, and1.74% at December 31, 2024. The ratio of allowance for credit losses to non-performing loans was301.5% at June 30, 2025, compared to276.5% , at December 31, 2024. - Total deposits were
$1.69 billion $1.63 billion $62.4 million 3.8% compared to December 31, 2024. The increase in deposits was primarily driven by an increase in money market deposits of$199.6 million $124.1 million $9.9 million - Total borrowings decreased
$44.9 million $143.4 million $188.3 million $45.0 million - Total equity increased to
$312.2 million $300.1 million $12.1 million 4.0% , primarily due to the retention of earnings, partially offset by the payment of$4.2 million
CEO outlook and commentary
Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, provided the following statement:
"Market volatility continues in 2025 as President Trump's tariffs are negotiated, combined with the geopolitical unrest. Many of the tariff implementations were extended, some settled, and some added. Contributing to the market volatility is the disagreement between the Federal Reserve Board and the Administration with respect to reducing short term interest rates. President Trump believes that inflation and job data support lowering interest rates immediately. Federal Reserve Chairman Powell, however, has taken a wait-and-see approach to see if the tariffs will cause a spike in the inflation rate. The tariffs have also affected the real estate construction industry, due to the possible increase in material prices, and in some instances, the availability of some building materials. The
"Parke Bank experienced continued good financial results in the second quarter of 2025, with net income increasing to
"Parke Bank moved forward in 2025 with increased loan generation, with loans growing
"Asset quality is always a main focus of our Parke Bank. Our non-performing loans as of June 30, 2025, decreased to
"Parke Bank is well-positioned to navigate the continued volatile market, with strong equity of
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
| ||||||||
June 30, | December 31, | |||||||
2025 | 2024 | |||||||
(Dollars in thousands) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 184,254 | $ | 221,527 | ||||
Investment securities | 14,001 | 14,760 | ||||||
Loans, net of unearned income | 1,934,786 | 1,868,153 | ||||||
Less: Allowance for credit losses | (33,770) | (32,573) | ||||||
Net loans | 1,901,016 | 1,835,581 | ||||||
Premises and equipment, net | 5,581 | 5,316 | ||||||
Bank owned life insurance (BOLI) | 29,404 | 29,070 | ||||||
Other assets | 36,076 | 35,983 | ||||||
Total assets | $ | 2,170,332 | $ | 2,142,236 | ||||
Liabilities and Equity | ||||||||
Non-interest bearing deposits | $ | 188,738 | $ | 184,037 | ||||
Interest bearing deposits | 1,504,724 | 1,447,013 | ||||||
FHLBNY borrowings | 100,000 | 145,000 | ||||||
Subordinated debentures | 43,395 | 43,300 | ||||||
Other liabilities | 21,319 | 22,813 | ||||||
Total liabilities | 1,858,176 | 1,842,163 | ||||||
Total shareholders' equity | 312,156 | 300,073 | ||||||
Total liabilities and equity | $ | 2,170,332 | $ | 2,142,236 | ||||
Table 2: Consolidated Income Statements (Unaudited)
Parke Bancorp, Inc. and Subsidiaries Consolidated Income Statement
| ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $ | 32,756 | $ | 28,732 | $ | 64,232 | $ | 56,815 | ||||||||
Interest and dividends on investments | 232 | 248 | 520 | 497 | ||||||||||||
Interest on deposits with banks | 2,036 | 1,209 | 4,118 | 2,354 | ||||||||||||
Total interest income | 35,024 | 30,189 | 68,870 | 59,666 | ||||||||||||
Interest expense: | ||||||||||||||||
Interest on deposits | 15,144 | 13,684 | 30,312 | 27,141 | ||||||||||||
Interest on borrowings | 2,009 | 2,193 | 4,080 | 4,159 | ||||||||||||
Total interest expense | 17,153 | 15,877 | 34,392 | 31,300 | ||||||||||||
Net interest income | 17,871 | 14,312 | 34,478 | 28,366 | ||||||||||||
Provision for credit losses | 984 | 483 | 1,574 | 687 | ||||||||||||
Net interest income after provision for credit losses | 16,887 | 13,829 | 32,904 | 27,679 | ||||||||||||
Non-interest income | ||||||||||||||||
Service fees on deposit accounts | 312 | 359 | 620 | 738 | ||||||||||||
Gain on sale of SBA loans | — | 25 | — | 25 | ||||||||||||
Other loan fees | 145 | 163 | 322 | 402 | ||||||||||||
Bank owned life insurance income | 169 | 162 | 334 | 322 | ||||||||||||
Other | 190 | 492 | 361 | 776 | ||||||||||||
Total non-interest income | 816 | 1,201 | 1,637 | 2,263 | ||||||||||||
Non-interest expense | ||||||||||||||||
Compensation and benefits | 3,264 | 3,070 | 6,555 | 6,289 | ||||||||||||
Professional services | 652 | 551 | 1,366 | 996 | ||||||||||||
Occupancy and equipment | 676 | 672 | 1,364 | 1,313 | ||||||||||||
Data processing | 425 | 264 | 845 | 629 | ||||||||||||
FDIC insurance and other assessments | 384 | 322 | 734 | 653 | ||||||||||||
OREO expense | 100 | 236 | 227 | 589 | ||||||||||||
Other operating expense | 1,179 | 1,120 | 2,127 | 2,301 | ||||||||||||
Total non-interest expense | 6,680 | 6,235 | 13,218 | 12,770 | ||||||||||||
Income before income tax expense | 11,023 | 8,795 | 21,323 | 17,172 | ||||||||||||
Income tax expense | 2,740 | 2,340 | 5,262 | 4,566 | ||||||||||||
Net income attributable to Company | 8,283 | 6,455 | 16,061 | 12,606 | ||||||||||||
Less: Preferred stock dividend | (5) | (5) | (10) | (11) | ||||||||||||
Net income available to common shareholders | $ | 8,278 | $ | 6,450 | $ | 16,051 | $ | 12,595 | ||||||||
Earnings per common share | ||||||||||||||||
Basic | $ | 0.70 | $ | 0.54 | $ | 1.36 | $ | 1.05 | ||||||||
Diluted | $ | 0.69 | $ | 0.53 | $ | 1.34 | $ | 1.04 | ||||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 11,843,328 | 11,962,197 | 11,839,856 | 11,960,487 | ||||||||||||
Diluted | 12,013,909 | 12,119,359 | 12,007,594 | 12,125,546 | ||||||||||||
Table 3: Operating Ratios (unaudited)
Three months ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Return on average assets | 1.56 | % | 1.34 | % | 1.52 | % | 1.31 | % | ||||||||
Return on average common equity | 10.69 | % | 8.88 | % | 10.53 | % | 8.72 | % | ||||||||
Interest rate spread | 2.46 | % | 1.95 | % | 2.35 | % | 1.92 | % | ||||||||
Net interest margin | 3.41 | % | 3.03 | % | 3.32 | % | 3.00 | % | ||||||||
Efficiency ratio* | 35.75 | % | 40.19 | % | 36.60 | % | 41.69 | % | ||||||||
* 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)
June 30, | December 31, | |||||||
2025 | 2024 | |||||||
(Amounts in thousands except ratio data) | ||||||||
Allowance for credit losses on loans | $ | $ | 32,573 | |||||
Allowance for credit losses to total loans | 1.75 | % | 1.74 | % | ||||
Allowance for credit losses to non-accrual loans | 301.50 | % | 276.46 | % | ||||
Non-accrual loans | $ | 11,202 | $ | 11,782 | ||||
OREO | $ | 1,562 | $ | 1,562 | ||||
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SOURCE Parke Bancorp, Inc.
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