Net income jumps 52% at Parke Bancorp (NASDAQ: PKBK) in Q1 2026
Rhea-AI Filing Summary
Parke Bancorp, Inc. reported significantly stronger results for the first quarter of 2026. Net income available to common shareholders rose to $11.8 million, with diluted EPS of $0.99, up from $0.65 a year earlier. Net income for the quarter increased 52.3% compared to the first quarter of 2025.
Profitability improved across key ratios, with return on average assets at 2.19% and return on average common equity at 14.47%. Net interest margin expanded to 4.17%, supported by higher interest and fees on loans and lower interest expense. The efficiency ratio improved to 31.39%, indicating tight expense control.
Positive
- Net income growth: Net income for Q1 2026 increased 52.3% to $11.8 million versus Q1 2025, with diluted EPS rising to $0.99 from $0.65.
- Margin and efficiency gains: Net interest margin improved to 4.17% and the efficiency ratio strengthened to 31.39%, indicating better profitability and cost control.
- Improved asset quality: Non-accrual loans declined to $9.2 million while allowance for credit losses remained robust at $34.9 million, supporting credit resilience.
Negative
- None.
Insights
Parke Bancorp delivered materially stronger profitability in Q1 2026, driven by wider margins and disciplined costs.
Parke Bancorp posted net income available to common shareholders of $11.8M, a 52.3% increase versus Q1 2025. Net interest income rose as interest and fees on loans grew to $35.9M, while interest expense declined to $14.8M, expanding core spread.
Profitability metrics improved sharply: return on average assets reached 2.19% and return on average common equity 14.47%. Net interest margin widened to 4.17%, while the efficiency ratio improved to 31.39%, reflecting strong cost discipline despite a 10.4% increase in non-interest expense.
Asset quality indicators remain solid, with allowance for credit losses at $34.9M and non-accrual loans down to $9.2M. The CEO highlighted macroeconomic uncertainties but emphasized that the bank enters this environment with strong capital, earnings, liquidity and controlled expenses based on results through March 31, 2026.
8-K Event Classification
Key Figures
Key Terms
net interest margin financial
efficiency ratio financial
provision for credit losses financial
bank owned life insurance financial
non-accrual loans financial
OREO financial
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The
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Exhibit No.
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Description
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99.1
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Press Release dated April 17, 2026
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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Date: April 17, 2026
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By
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/s/ Jonathan D. Hill
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Jonathan D. Hill
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Senior Vice President and Chief Financial Officer
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(Duly Authorized Representative)
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Exhibit 99.1
Parke Bancorp, Inc.
601 Delsea Drive,
Washington Township, NJ 08080
Contact:
Vito S. Pantilione, President and CEO
Jonathan D. Hill, Senior Vice President and CFO
(856) 256-2500
PARKE BANCORP, INC. ANNOUNCES FIRST QUARTER 2026 EARNINGS
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Highlights: |
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Net Income: |
$11.8 million for Q1 2026, increased 6.9% over Q4 2025 |
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EPS (diluted): |
$0.99 for Q1 2026 compared to $0.93 for Q4 2025 |
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ROAA: |
2.19% for Q1 2026 compared to 2.04% for Q4 2025 |
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ROAE: |
14.47% for Q1 2026 compared to 13.69% for Q4 2025 |
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NIM: |
4.17% for Q1 2026 compared to 4.09% for Q4 2025 |
WASHINGTON TOWNSHIP, NJ, April 17, 2026 - Parke Bancorp, Inc. (“Parke Bancorp” or the "Company") (NASDAQ: “PKBK”), the parent company of Parke Bank, announced its operating results for the three months ended March 31, 2026.
Highlights for the three months ended March 31, 2026:
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Net income available to common shareholders was $11.8 million, or $1.01 per basic common share and $0.99 per diluted common share, for the three months ended March 31, 2026, an increase of $4.1 million, or 52.3%, compared to net income available to common shareholders of $7.8 million, or $0.66 per basic common share and $0.65 per diluted common share, for the three months ended March 31, 2025. The increase was primarily due to a $5.5 million increase in net interest income, and a $0.4 million decrease in provision for credit losses, partially offset by a $0.7 million increase in non-interest expense. |
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Net interest income increased $5.5 million, or 33.3%, to $22.1 million for the three months ended March 31, 2026, compared to $16.6 million for the same period in 2025. |
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The Company recorded a provision for credit losses of $0.2 million for the three months ended March 31, 2026, compared to a provision for credit losses of $0.6 million for the same period in 2025. |
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Non-interest income increased slightly by $0.03 million, or 3.9%, to $0.85 million for the three months ended March 31, 2026, compared to $0.82 million for the same period in 2025. |
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Non-interest expense increased $0.7 million, or 10.4%, to $7.2 million for the three months ended March 31, 2026, compared to $6.5 million for the same period in 2025. |
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 $3.1 million during the three months ended March 31, 2026 compared to the same period in 2025, primarily due to an increase in interest and fees on loans of $4.4 million, or 14.0%, to $35.9 million, resulting from higher market interest rates and higher average loan portfolio balances. Interest earned on average deposits held at the Federal Reserve Bank ("FRB") decreased $1.3 million, or 60.3%, during the three months ended March 31, 2026, due to lower average balances on deposit and a decrease in the interest rate on those deposits.
Interest expense decreased $2.4 million, or 14.1%, to $14.8 million for the three months ended March 31, 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.
The Company booked a provision for credit losses of $0.2 million for the three months ended March 31, 2026, compared to a provision for credit losses of $0.6 million for the same period in 2025. The decrease in the provision for credit losses for the three months ended March 31, 2026, was due to lower growth in loans during the three months ended March 31, 2026, as compared to the same period in 2025.
Non-interest income increased $32.0 thousand, or 3.9%, for the three months ended March 31, 2026, compared to the same period in 2025, primarily as a result of an increase in bank owned life insurance ("BOLI") income.
Non-interest expense increased $0.7 million, or 10.4%, to $7.2 million for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily driven by an increase in compensation and benefits of $0.4 million, and an increase in other operating expense of $0.4 million, partially offset by a decrease in professional services of $0.1 million, compared to the same period in 2025.
Income tax expense increased $1.2 million for the three months ended March 31, 2026 compared to the same period in 2025. The effective tax rate for the three ended March 31, 2026 was 23.9%, compared to 24.5% for the same period in 2025.
March 31, 2026 discussion of financial condition
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Total assets decreased to $2.21 billion at March 31, 2026, from $2.25 billion at December 31, 2025, a decrease of $36.5 million, or 1.6%, primarily due to a decrease in cash and cash equivalents, partially offset by an increase in net loans. |
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Cash and cash equivalents totaled $110.9 million at March 31, 2026, as compared to $156.9 million at December 31, 2025. The decrease in cash and cash equivalents was primarily due to an increase in loan balances, and a decrease in primarily non-interest bearing and brokered deposit balances, partially offset by an increase in Federal Home Loan Bank of New York ("FHLBNY") borrowings. |
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The investment securities portfolio decreased to $13.1 million at March 31, 2026, from $13.5 million at December 31, 2025, a decrease of $0.4 million, or 2.9%, primarily due to pay downs of securities. |
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Gross loans increased $8.1 million or 0.4%, to $2.04 billion at March 31, 2026, compared to gross loans at December 31, 2025. |
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Nonperforming loans at March 31, 2026 decreased to $9.2 million, or 0.45% of total loans, a decrease of $1.6 million, or 14.9%, from $10.8 million of nonperforming loans at December 31, 2025. OREO at March 31, 2026 was $2.9 million, unchanged from December 31, 2025. Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.54% and 0.61% of total assets at March 31, 2026 and December 31, 2025, respectively. Loans past due 30 to 89 days were $3.9 million at March 31, 2026, an increase of $0.4 million from December 31, 2025. |
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The allowance for credit losses was $34.9 million at March 31, 2026, as compared to $34.6 million at December 31, 2025. The ratio of the allowance for credit losses to total loans was 1.71% at March 31, 2026, and 1.70% at December 31, 2025. The ratio of allowance for credit losses to non-performing loans was 380.4% at March 31, 2026, compared to 321.0%, at December 31, 2025. |
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Total deposits were $1.70 billion at March 31, 2026, down from $1.76 billion at December 31, 2025, a decrease of $59.9 million or 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, time deposits of $24.0 million, brokered time deposits of $14.0 million, and interest-bearing deposits of $12.6 million, partially offset by an increase in money market deposits of $22.6 million. |
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Total borrowings increased $10.0 million during the three months ended March 31, 2026, to $153.4 million at March 31, 2026, from $143.4 million at December 31, 2025, due to a $10.0 million increase in outstanding FHLBNY borrowings. |
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Total equity increased to $335.6 million at March 31, 2026, up from $324.5 million at December 31, 2025, an increase of $11.0 million, or 3.4%, primarily due to the retention of earnings, partially offset by the payment of $2.1 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:
“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 Russia – Ukraine war continuing, and the Iran conflict that started in February, are all challenges making it difficult to identify the market’s direction. The market seemed to be checking the boxes for a couple of rate cuts, however, Iran blocking the Strait of Hormuz, combined with the interruption of oil production has triggered sharp increases in oil and gas prices, reigniting inflation. It is important for banks, including Parke Bank, to remain nimble and responsive to address possible challenges and evolving opportunities.”
“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 52.3% to $11.8 million compared to the first quarter of 2025. This increase was partially due to the growth and yield of our loan portfolio, in addition to our tight control of expenses, with an Efficiency Ratio of 31.39% at March 31, 2026. Our Return on Assets improved to 2.19%, a 48.0% increase from the first quarter of 2025, and our Return on Equity improved to 14.47%, a 39.7% increase from the first quarter of 2025. The improvement of our Net Interest Margin to 4.17%, a 29.9% improvement, played an important part in these improved numbers.”
“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
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March 31, |
December 31, |
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2026 |
2025 |
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(Dollars in thousands) |
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Assets |
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Cash and cash equivalents |
$ | 110,874 | $ | 156,863 | ||||
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Investment securities |
13,126 | 13,523 | ||||||
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Loans, net of unearned income |
2,043,296 | 2,035,227 | ||||||
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Less: Allowance for credit losses |
(34,921 | ) | (34,649 | ) | ||||
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Net loans |
2,008,375 | 2,000,578 | ||||||
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Premises and equipment, net |
5,462 | 5,506 | ||||||
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Bank owned life insurance (BOLI) |
35,541 | 35,320 | ||||||
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Other assets |
39,557 |
37,646 | ||||||
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Total assets |
$ | 2,212,935 | $ | 2,249,436 | ||||
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Liabilities and Equity |
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Non-interest bearing deposits |
$ | 164,105 | $ | 196,506 | ||||
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Interest bearing deposits |
1,342,975 | 1,346,834 | ||||||
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Brokered Deposits |
191,664 | 215,329 | ||||||
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FHLBNY borrowings |
140,000 | 130,000 | ||||||
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Subordinated debentures |
13,403 | 13,403 | ||||||
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Other liabilities |
25,225 | 22,846 | ||||||
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Total liabilities |
1,877,372 | 1,924,918 | ||||||
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Total shareholders’ equity |
335,563 | 324,518 | ||||||
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Total liabilities and equity |
$ | 2,212,935 | $ | 2,249,436 | ||||
Table 2: Consolidated Income Statements (Unaudited)
Parke Bancorp, Inc. and Subsidiaries
Consolidated Income Statement
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For the Three Months Ended |
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March 31, |
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2026 |
2025 |
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Interest income: |
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Interest and fees on loans |
$ | 35,891 | $ | 31,476 | ||||
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Interest and dividends on investments |
222 | 288 | ||||||
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Interest on deposits with banks |
827 | 2,082 | ||||||
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Total interest income |
36,940 | 33,846 | ||||||
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Interest expense: |
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Interest on deposits |
13,428 | 15,169 | ||||||
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Interest on borrowings |
1,380 | 2,070 | ||||||
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Total interest expense |
14,808 | 17,239 | ||||||
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Net interest income |
22,132 | 16,607 | ||||||
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Provision for credit losses |
202 | 590 | ||||||
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Net interest income after provision for credit losses |
21,930 | 16,017 | ||||||
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Non-interest income |
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Service fees on deposit accounts |
289 | 308 | ||||||
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Other loan fees |
161 | 178 | ||||||
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Bank owned life insurance income |
220 | 165 | ||||||
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Other |
183 | 170 | ||||||
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Total non-interest income |
853 | 821 | ||||||
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Non-interest expense |
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Compensation and benefits |
3,704 | 3,291 | ||||||
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Professional services |
598 | 714 | ||||||
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Occupancy and equipment |
761 | 687 | ||||||
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Data processing |
317 | 421 | ||||||
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FDIC insurance and other assessments |
373 | 350 | ||||||
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OREO expense |
80 | 127 | ||||||
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Other operating expense |
1,381 | 948 | ||||||
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Total non-interest expense |
7,214 | 6,538 | ||||||
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Income before income tax expense |
15,569 | 10,300 | ||||||
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Income tax expense |
3,725 | 2,522 | ||||||
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Net income attributable to Company |
11,844 | 7,778 | ||||||
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Less: Preferred stock dividend |
(5 | ) | (5 | ) | ||||
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Net income available to common shareholders |
$ | 11,839 | $ | 7,773 | ||||
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Earnings per common share |
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Basic |
$ | 1.01 | $ | 0.66 | ||||
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Diluted |
$ | 0.99 | $ | 0.65 | ||||
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Weighted average common shares outstanding |
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Basic |
11,706,574 | 11,836,384 | ||||||
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Diluted |
11,903,776 | 12,006,965 | ||||||
Table 3: Operating Ratios (unaudited)
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Three months ended |
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March 31, |
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2026 |
2025 |
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Return on average assets |
2.19 | % | 1.48 | % | ||||
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Return on average common equity |
14.47 | % | 10.36 | % | ||||
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Interest rate spread |
3.34 | % | 2.32 | % | ||||
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Net interest margin |
4.17 | % | 3.21 | % | ||||
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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)
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March 31, |
December 31, |
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2026 |
2025 |
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(Amounts in thousands except ratio data) |
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Allowance for credit losses on loans |
$ | 34,921 | $ | 34,649 | ||||
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Allowance for credit losses to total loans |
1.71 | % | 1.70 | % | ||||
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Allowance for credit losses to non-accrual loans |
380.40 | % | 321.00 | % | ||||
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Non-accrual loans |
$ | 9,181 | $ | 10,793 | ||||
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OREO |
$ | 2,862 | $ | 2,862 | ||||