PARKE BANCORP, INC. ANNOUNCES SECOND QUARTER 2026 EARNINGS

Rhea-AI Summary

Parke Bancorp (NASDAQ: PKBK) reported Q2 2026 net income available to common shareholders of $12.2 million, up 47.8% year over year, with diluted EPS of $1.03 versus $0.69 in Q2 2025. Net interest income rose 28.8% to $23.0 million, driven by higher loan yields and lower funding costs.

For the first half of 2026, net income available to common shareholders increased 50.0% to $24.1 million, or $2.02 diluted EPS. Net interest margin for Q2 2026 was 4.17%, and for the first six months improved from 3.32% in 2025, while the efficiency ratio improved to 30.16%. Total assets reached $2.30 billion, equity rose 6.6% to $346.1 million, and nonperforming loans fell to $5.4 million (0.27% of total loans), contributing to nonperforming assets of 0.53% of total assets. Total deposits were stable at $1.76 billion, with modest growth in interest-bearing and brokered deposits.

Positive

• Net income Q2 2026 $12.2M, up 47.8% year over year
• Net interest income H1 2026 $45.1M, up 30.9% year over year
• Net interest margin improved to 4.17% for the first six months of 2026
• Nonperforming loans declined to $5.4M, 0.27% of total loans
• Return on average assets rose to 2.18% for H1 2026
• Efficiency ratio improved to 30.16% for the first six months of 2026

Negative

• Gross loans decreased $3.9M to $2.03B since December 31, 2025
• Total borrowings increased $34.0M to $177.4M at June 30, 2026
• Income tax expense increased to $4.0M in Q2 2026 and $7.8M in H1 2026

News Explained

Quarter-end liquidity increased alongside higher borrowings and lower gross loans, so the balance-sheet change was not loan growth.

Parke Bancorp has reported second-quarter 2026 results; at June 30, 2026, cash and equivalents were $204.7 million, gross loans were $2.03 billion, and FHLBNY borrowings were higher.

In balance-sheet terms, the quarter-end liquidity position was larger while loan balances were slightly lower and borrowings were higher; the company said the cash increase reflected the timing of loan payoffs and would be redeployed into future loans or investments.

Asset quality was mixed in the same period: nonperforming loans fell to $5.4 million, while other real estate owned increased to $6.8 million.

Market Context

The tag-specific earnings record lists an average move of 3.2% across 5 events, adding historical co...

Analysis

The tag-specific earnings record lists an average move of 3.2% across 5 events, adding historical context to this quarter’s results. Recent insider activity was net selling, while higher borrowings remain a risk factor to monitor.

Key Figures

Q2 Net Income: $12.2 million Q2 Revenue: $39.3 million Diluted EPS: $1.03 +5 more

8 metrics

Q2 Net Income $12.2 million Q2 2026; increased 3.4% over Q1 2026

Q2 Revenue $39.3 million Q2 2026; increased 4.1% over Q1 2026

Diluted EPS $1.03 Q2 2026 versus $0.99 in Q1 2026

Net Interest Income $23.0 million Q2 2026; increased 28.8% versus Q2 2025

Six-Month Net Income $24.1 million Six months ended June 30, 2026; increased 50.0% versus 2025

Net Interest Margin 4.17% Q2 2026; flat compared to Q1 2026

Total Assets $2.30 billion June 30, 2026; increased 4.1% over Q1 2026

Nonperforming Loans $5.4 million June 30, 2026; decreased 49.8% from December 31, 2025

Previous Earnings Reports

5 past events · Latest: Apr 17 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 17	First-quarter earnings	Positive	+3.8%	Higher net income, diluted EPS, profitability metrics, and net interest income
Jan 22	Fourth-quarter earnings	Positive	+2.4%	Higher quarterly and annual earnings, net interest income, assets, loans, and deposits
Oct 22	Third-quarter earnings	Positive	+3.4%	Higher quarterly and nine-month earnings driven by net interest income growth
Jul 16	Second-quarter earnings	Positive	+4.7%	Higher earnings, EPS, loans, deposits, and improved efficiency ratio
Apr 17	First-quarter earnings	Positive	+1.8%	Higher earnings, EPS, revenue, net interest income, loans, and deposits

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

PKBK's tag-specific earnings announcements were followed by positive 24-hour price reactions in all five available comparisons.

Key Terms

nim, allowance for credit losses

2 terms

nim financial

"NIM: 4.17% for Q2 2026, flat compared to 4.17% for Q1 2026"

NIM (net interest margin) measures the gap between the interest a bank earns on loans and other interest‑producing assets and the interest it pays to depositors and creditors, shown as a percentage of the bank’s earning assets. Think of it like a store’s markup: a wider NIM means the bank keeps more money from its core lending activity, boosting profit potential. Investors watch NIM because shifts reveal how profitable a bank’s lending is, and how sensitive that profit is to interest‑rate changes and shifts in the mix of loans versus other assets.

allowance for credit losses financial

"The allowance for credit losses was $34.6 million"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Highlights:
Net Income:	$12.2 million for Q2 2026, increased 3.4% over Q1 2026
Revenue:	$39.3 million for Q2 2026, increased 4.1% over Q1 2026
Total Assets:	$2.30 billion, increased 4.1% over Q1 2026
EPS (diluted):	$1.03 for Q2 2026 compared to $0.99 for Q1 2026
NIM:	4.17% for Q2 2026, flat compared to 4.17% for Q1 2026

WASHINGTON TOWNSHIP, NJ, July 22, 2026 /PRNewswire/ -- Parke Bancorp, Inc. ("Parke Bancorp" or the "Company") (NASDAQ: "PKBK"), the parent company of Parke Bank, announced its operating results for the three and six months ended June 30, 2026.

Highlights for the three and six months ended June 30, 2026:

• Net income available to common shareholders was $12.2 million, or $1.04 per basic common share and $1.03 per diluted common share, for the three months ended June 30, 2026, an increase of $4.0 million, or 47.8%, compared to net income available to common shareholders of $8.3 million, or $0.70 per basic common share and $0.69 per diluted common share, for the three months ended June 30, 2025. The increase was primarily due to a $5.1 million increase in net interest income, and a $0.3 million decrease in provision for credit losses, partially offset by a $0.2 million increase in non-interest expense.

• Net interest income increased $5.1 million, or 28.8%, to $23.0 million for the three months ended June 30, 2026, compared to $17.9 million for the same period in 2025.

• The Company recorded a provision for credit losses of $0.7 million for the three months ended June 30, 2026, compared to a provision for credit losses of $1.0 million for the same period in 2025.

• Non-interest income increased by $0.1 million, or 7.5%, to $0.88 million for the three months ended June 30, 2026, compared to $0.82 million for the same period in 2025.

• Non-interest expense increased $0.2 million, or 3.6%, to $6.9 million for the three months ended June 30, 2026, compared to $6.7 million for the same period in 2025.

• Net income available to common shareholders was $24.1 million, or $2.05 per basic common share and $2.02 per diluted common share, for the six months ended June 30, 2026, an increase of $8.0 million, or 50.0%, compared to net income available to common shareholders of $16.1 million, or $1.36 per basic common share and $1.34 per diluted common share, for the same period in 2025.  The increase is primarily due to an increase in net interest income of $10.7 million, and a $0.7 million decrease in provision for credit losses, partially offset by a $0.9 million increase in non-interest expense.

• Net-interest income increased $10.7 million, or 30.9%, to $45.1 million for the six months ended June 30, 2026, compared to $34.5 million for the same period in 2025.

• The Company recorded a provision for credit losses of $0.9 million for the six months ended June 30, 2026, compared to a provision for credit losses of $1.6 million for the same period in 2025.

• Non-interest income increased $0.1 million, or 5.7%, to $1.7 million for the six months ended June 30, 2026, compared to $1.6 million for the same period in 2025.

• Non-interest expense increased $0.9 million, or 6.9%, to $14.1 million for the six months ended June 30, 2026, compared to $13.2 million for the same period in 2025.

The following is a recap of the significant items that impacted results of operations for the three and six months ended June 30, 2026:

Interest income increased $3.4 million during the three months ended June 30, 2026 compared to the same period in 2025, primarily due to an increase in interest and fees on loans of $4.2 million, or 12.8%, to $37.0 million, resulting from higher market interest rates and higher average loan portfolio balances.  Interest earned on deposits held at the Federal Reserve Bank ("FRB") decreased $0.8 million, or 38.3%, during the three months ended June 30, 2026, due to lower average balances on deposit and a decrease in the interest rate on those deposits.  For the six months ended June 30, 2026, interest income increased $6.5 million from the same period in 2025, primarily due to an increase in interest and fees on loans of $8.6 million, or 13.4%, to $72.8 million, primarily due to an increase in average outstanding loan balances, and higher market interest rates.  Interest earned on deposits held at the FRB decreased $2.0 million during the six months ended June 30, 2026, due to lower average balances on deposit and a decrease in the interest rate on those deposits.  

Interest expense decreased $1.7 million, or 10.0%, to $15.4 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to a decrease in interest expense on deposits, due to a decrease in market interest rates, as well as a decrease in interest expense on borrowings.  For the six months ended June 30, 2026, interest expense decreased $4.1 million, or 12.1%, to $30.2 million, primarily due to lower market interest rates, combined with changes in the mix of deposits and borrowings.

The Company booked a provision for credit losses of $0.7 million for the three months ended June 30, 2026, compared to a provision for credit losses of $1.0 million for the same period in 2025. The decrease in the provision for credit losses for the three months ended June 30, 2026, was due to a decrease in loan balance during the three months ended June 30, 2026, as compared to an increase in loan balance during the same period in 2025, partially offset by an increase in charge-offs.  The provision for credit losses for the six months ended June 30, 2026 decreased $0.7 million, or 44.2%, to $0.9 million, compared to a provision for credit losses of $1.6 million for the same period in 2025.  The decrease in the provision for credit losses was primarily due to a decrease in loan balance from December 31, 2025, partially offset by an increase in charge-offs during the six months ended June 30, 2026.

Non-interest income increased $61.0 thousand, or 7.5%, for the three months ended June 30, 2026, compared to the same period in 2025, primarily as a result of an increase in bank owned life insurance ("BOLI") income.  For the six months ended June 30, 2026, non-interest income increased $94.0 thousand, primarily driven by a $136.0 thousand increased in BOLI, partially offset by a $54.0 thousand decreased in service fees on deposit accounts.  

Non-interest expense increased $0.2 million, or 3.6%, to $6.9 million for the three months ended June 30, 2026, compared to the same period in 2025.  The increase was primarily driven by an increase in compensation and benefits of $0.3 million, and an increase in other operating expense of $0.1 million, partially offset by a decrease in data processing expense of $0.2 million, compared to the same period in 2025.  For the six months ended June 30, 2026, non-interest expense increased $0.9 million, or 6.9%, to $14.1 million, compared to the same period in 2025.  The increase in non-interest expense was primarily due to an increase in compensation and benefits of $0.7 million, and an increase in other operating expense of $0.5 million, partially offset by a decrease in data processing expense of $0.3 million, compared to the six months ended June 30, 2025.  

Income tax expense increased $1.3 million for the three months ended June 30, 2026, compared to the same period in 2025.  For the six months ended June 30, 2026, income tax expense increased $2.5 million, compared to the same period in 2025.  The effective tax rate for the three and six months ended June 30, 2026 was 24.9% and 24.4%, respectively, compared to 23.9% and 24.7% for the same period in 2025.

June 30, 2026 discussion of financial condition

• Total assets increased to $2.30 billion at June 30, 2026, from $2.25 billion at December 31, 2025, an increase of $53.6 million, or 2.4%, primarily due to an increase in cash and cash equivalents, and an increase in other real estate owned, partially offset by a decrease in net loans.

• Cash and cash equivalents totaled $204.7 million at June 30, 2026, as compared to $156.9 million at December 31, 2025. The increase in cash and cash equivalents was primarily due to the timing of loan payoffs, which will be redeployed into future loans/investments.

• The investment securities portfolio increased to $14.3 million at June 30, 2026, from $13.5 million at December 31, 2025, an increase of $0.8 million, or 5.7%, primarily due to the purchase of a $1.5 million security classified as held to maturity, offset by pay downs of securities. 

• Gross loans decreased $3.9 million or 0.2%, to $2.03 billion at June 30, 2026, compared to gross loans of $2.04 billion at December 31, 2025.

• Nonperforming loans at June 30, 2026 decreased to $5.4 million, or 0.27% of total loans, a decrease of $5.4 million, or 49.8%, from $10.8 million of nonperforming loans at December 31, 2025. OREO at June 30, 2026 was $6.8 million, an increase of $3.9 million from December 31, 2025.  Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.53% and 0.61% of total assets at June 30, 2026 and December 31, 2025, respectively. Loans past due 30 to 89 days were $2.1 million at June 30, 2026, a decrease of $1.4 million from December 31, 2025.  

• The allowance for credit losses was $34.6 million at June 30, 2026, as compared to $34.6 million at December 31, 2025. The ratio of the allowance for credit losses to total loans was 1.70% at June 30, 2026, and 1.70% at December 31, 2025. The ratio of allowance for credit losses to non-performing loans was 639.4% at June 30, 2026, compared to 321.0%, at December 31, 2025.

• Total deposits were $1.76 billion at June 30, 2026, an increase of $0.9 million or 0.1%, compared to December 31, 2025. The increase in deposits was primarily driven by an increase in interest-bearing deposits of $4.3 million, partially offset by a decrease in non-interest-bearing deposits of $3.3 million. 

• Total borrowings increased $34.0 million during the six months ended June 30, 2026, to $177.4 million at June 30, 2026, from $143.4 million at December 31, 2025, due to a $34.0 million increase in outstanding FHLBNY borrowings. 

• Total equity increased to $346.9 million at June 30, 2026, up from $324.5 million at December 31, 2025, an increase of $21.6 million, or 6.6%, primarily due to the retention of earnings, partially offset by the payment of $4.5 million of cash dividends. 

CEO outlook and commentary

Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, provided the following statement:

"Economic volatility continued during the first half of 2026 as geopolitical tensions, persistent inflation concerns, and uncertainty surrounding future monetary policy weighed on financial markets and the broader economy. Developments in the Middle East, including continued tensions affecting the Strait of Hormuz, as well as the ongoing conflict between Russia and Ukraine, have contributed to uncertainty regarding global economic growth, inflation, and interest rate expectations. While increased oil production has helped moderate energy prices, inflation remains a primary concern of the Federal Reserve. As a result, the outlook for interest rates remains uncertain, making economic forecasting particularly challenging. Despite these economic headwinds, Parke Bank delivered strong financial results during the first six months of 2026. Net income increased to $24.1 million for the six months ended June 30, 2026, representing a 50% increase compared to $16.1 million for the same period in 2025. The increase in earnings was driven by the continued strength of our loan portfolio, higher asset yields, and lower funding costs. Net interest margin improved to 4.17% compared to 3.32% for the first six months of 2025, reflecting the Bank's ability to effectively manage its balance sheet in a changing interest rate environment. Profitability metrics also improved significantly. Return on average assets increased to 2.18% from 1.52%, while return on average common equity rose to 14.40% from 10.53% during the same period in 2025. Disciplined expense management continued to contribute to our strong performance. The Bank's efficiency ratio improved to 30.16% compared to 36.60% for the first six months of 2025, demonstrating our ongoing focus on operational efficiency while maintaining a high level of service to our customers."

Forward Looking Statement Disclaimer

This release may contain forward-looking statements which are made in good faith pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements, such as statements of the Company's plans, objectives, expectations, estimates and intentions, involve risks and uncertainties and are subject to change based on various important factors (some of which are beyond the Company's control) which may cause actual results to differ materially from those currently anticipated.  Such factors include: 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 growth and maintain the quality 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; and the possibility of additional corrective actions or limitations on the operations of the Company. and Parke Bank being imposed by banking regulators. 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,
		2026				2025
		(Dollars in thousands)
Assets
Cash and cash equivalents		$	204,723			$	156,863
Investment securities			14,294				13,523
Loans, net of unearned income			2,031,361				2,035,227
Less: Allowance for credit losses			(34,624)				(34,649)
Net loans			1,996,737				2,000,578
Premises and equipment, net			5,534				5,506
Bank owned life insurance (BOLI)			35,790				35,320
Other assets			45,971				37,646
Total assets		$	2,303,049			$	2,249,436
Liabilities and Equity
Non-interest bearing deposits		$	193,186			$	196,506
Interest bearing deposits			1,321,800				1,346,834
Brokered Deposits			244,617				215,329
FHLBNY borrowings			164,000				130,000
Subordinated debentures			13,403				13,403
Other liabilities			19,974				22,846
Total liabilities			1,956,980				1,924,918
Total shareholders' equity			346,069				324,518
Total liabilities and equity		$	2,303,049			$	2,249,436

 

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,
		2026				2025				2026				2025
Interest income:
Interest and fees on loans		$	36,956			$	32,756			$	72,847			$	64,232
Interest and dividends on investments			237				232				459				520
Interest on deposits with banks			1,257				2,036				2,084				4,118
Total interest income			38,450				35,024				75,390				68,870
Interest expense:
Interest on deposits			13,736				15,144				27,164				30,312
Interest on borrowings			1,705				2,009				3,085				4,080
Total interest expense			15,441				17,153				30,249				34,392
Net interest income			23,009				17,871				45,141				34,478
Provision for credit losses			676				984				878				1,574
Net interest income after provision for credit losses			22,333				16,887				44,263				32,904
Non-interest income
Service fees on deposit accounts			278				312				566				620
Other loan fees			168				145				329				322
Bank owned life insurance income			250				169				470				334
Other			181				190				366				361
Total non-interest income			877				816				1,731				1,637
Non-interest expense
Compensation and benefits			3,560				3,264				7,264				6,555
Professional services			680				652				1,278				1,366
Occupancy and equipment			730				676				1,491				1,364
Data processing			272				425				588				845
FDIC insurance and other assessments			369				384				742				734
OREO expense			51				100				131				227
Other operating expense			1,259				1,179				2,642				2,127
Total non-interest expense			6,921				6,680				14,136				13,218
Income before income tax expense			16,289				11,023				31,858				21,323
Income tax expense			4,048				2,740				7,773				5,262
Net income attributable to Company			12,241				8,283				24,085				16,061
Less: Preferred stock dividend			(5)				(5)				(10)				(10)
Net income available to common shareholders		$	12,236			$	8,278			$	24,075			$	16,051
Earnings per common share
Basic		$	1.04			$	0.70			$	2.05			$	1.36
Diluted		$	1.03			$	0.69			$	2.02			$	1.34
Weighted average common shares outstanding
Basic			11,725,654				11,843,328				11,716,114				11,839,856
Diluted			11,922,397				12,008,224				11,913,086				12,007,594

 

Table 3: Operating Ratios (unaudited)
		Three months ended								Six Months Ended
		June 30,								June 30,
		2026				2025				2026				2025
Return on average assets			2.17	%			1.56	%			2.18	%			1.52	%
Return on average common equity			14.33	%			10.69	%			14.40	%			10.53	%
Interest rate spread			3.36	%			2.46	%			3.35	%			2.35	%
Net interest margin			4.17	%			3.41	%			4.17	%			3.32	%
Efficiency ratio*			28.98	%			35.75	%			30.16	%			36.60	%
*          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,
		2026				2025
		(Amounts in thousands except ratio data)
Allowance for credit losses on loans		$	34,624			$	34,649
Allowance for credit losses to total loans			1.70	%			1.70	%
Allowance for credit losses to non-accrual loans			639.40	%			321.00	%
Non-accrual loans		$	5,415			$	10,793
OREO		$	6,762			$	2,862

 

View original content:https://www.prnewswire.com/news-releases/parke-bancorp-inc-announces-second-quarter-2026-earnings-302830910.html

SOURCE Parke Bancorp, Inc.

FAQ

How did Parke Bancorp (PKBK) perform financially in Q2 2026?

Parke Bancorp reported Q2 2026 net income available to common shareholders of $12.2 million, a 47.8% increase year over year. According to the company, diluted EPS rose to $1.03, supported by higher net interest income and lower provision for credit losses.

What were Parke Bancorp's net interest margin and efficiency ratio for H1 2026?

Parke Bancorp’s net interest margin improved to 4.17% for the first six months of 2026. According to the company, the efficiency ratio improved to 30.16%, reflecting stronger asset yields, lower funding costs, and disciplined expense management compared to the same period in 2025.

How did Parke Bancorp's net income (PKBK) change in the first half of 2026?

Net income available to common shareholders for H1 2026 increased to $24.1 million, up 50.0% from $16.1 million in 2025. According to Parke Bancorp, this growth was driven mainly by a $10.7 million increase in net interest income and a lower provision for credit losses.

What is the asset and deposit growth outlook from Parke Bancorp’s June 30, 2026 balance sheet?

As of June 30, 2026, total assets rose to $2.30 billion, up 2.4% since year-end 2025. According to the company, total deposits were stable at $1.76 billion, with higher interest-bearing deposits and brokered deposits offsetting lower non-interest-bearing balances.

How strong is Parke Bancorp’s asset quality as of Q2 2026?

Asset quality indicators improved, with nonperforming loans declining to $5.4 million, or 0.27% of total loans. According to Parke Bancorp, nonperforming assets represented 0.53% of total assets, and the allowance for credit losses covered 639.4% of nonperforming loans.

What returns did Parke Bancorp (PKBK) generate on assets and equity in H1 2026?

For the first half of 2026, return on average assets was 2.18% and return on average common equity was 14.40%. According to the company, both metrics improved from 1.52% and 10.53%, respectively, in the same period of 2025.

How did Parke Bancorp’s funding mix and borrowings change by June 30, 2026?

Total deposits were $1.76 billion, with a modest shift toward interest-bearing and brokered deposits. According to Parke Bancorp, total borrowings increased by $34.0 million to $177.4 million, mainly from higher Federal Home Loan Bank of New York borrowings.