Parke Bancorp, Inc. Files Q1 2024 10-Q Report

TL;DR

<b>Parke Bancorp, Inc. released its Q1 2024 10-Q filing detailing financial performance and segment data.</b>

AI Summary

PARKE BANCORP, INC. (PKBK) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Parke Bancorp, Inc. filed its quarterly report on Form 10-Q for the period ending March 31, 2024. The filing covers financial data and operational details for the first quarter of 2024. Key financial statement information, including balance sheets and income statements, is presented. Details on equity components such as common stock, retained earnings, and additional paid-in capital are provided. The report includes segment information for commercial and construction portfolios.

Why It Matters

For investors and stakeholders tracking PARKE BANCORP, INC., this filing contains several important signals. Investors and analysts can assess Parke Bancorp's financial health and operational performance during the first quarter of 2024. The filing provides specific figures on equity, assets, and portfolio segments, crucial for evaluating the company's stability and growth trajectory.

Risk Assessment

Risk Level: low — PARKE BANCORP, INC. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain unusual or high-risk disclosures, indicating a routine update on the company's financial status.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand Parke Bancorp's Q1 2024 results and compare them to previous periods.

Key Numbers

• 2024-03-31 — Period of Report (Quarterly report end date)
• 2024-05-08 — Filing Date (Date the report was filed)
• 6022 — Standard Industrial Classification (Industry code for Commercial Banks)
• NJ — State of Incorporation (State where the company is incorporated)
• 1231 — Fiscal Year End (Month and day the company's fiscal year ends)

Key Players & Entities

• PARKE BANCORP, INC. (company) — Filer name
• PKBK (company) — Ticker symbol
• 2024-03-31 (date) — Period of report
• 2024-05-08 (date) — Filing date
• 601 DELSEA DRIVE (address) — Business address
• WASHINGTON TOWNSHIP (location) — Business address city
• NJ (location) — Business address state
• 08080 (postal_code) — Business address zip

FAQ

Industry Context

Parke Bancorp, Inc. operates within the commercial banking sector, providing financial services to individuals and businesses.

Regulatory Implications

As a publicly traded bank holding company, Parke Bancorp is subject to regulations from the Securities and Exchange Commission (SEC) and banking authorities.

What Investors Should Do

1. Analyze the balance sheet for changes in assets, liabilities, and equity from the previous quarter.
2. Review the income statement for revenue, net income, and earnings per share trends.
3. Examine the disclosures related to loan portfolios and any specific segment performance.

Key Dates

• 2024-03-31: Quarter End — End date for the reporting period of the 10-Q filing.
• 2024-05-08: Filing Date — Date Parke Bancorp, Inc. submitted its 10-Q to the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report for fiscal year 2024, providing an update on the company's financial position and performance compared to the end of fiscal year 2023 and the first quarter of 2023.

Key Financial Figures

• $0.10 — ich Registered Common Stock, par value $0.10 per share PKBK The Nasdaq Stock Market,

Filing Documents

• pkbk-20240331.htm (10-Q) — 1956KB
• pkbk-q1x3312024ex311.htm (EX-31.1) — 10KB
• pkbk-q1x3312024ex312.htm (EX-31.2) — 10KB
• pkbk-q1x3312024ex32.htm (EX-32) — 7KB
• 0001315399-24-000038.txt (&nbsp;) — 9801KB
• pkbk-20240331.xsd (EX-101.SCH) — 26KB
• pkbk-20240331_cal.xml (EX-101.CAL) — 96KB
• pkbk-20240331_def.xml (EX-101.DEF) — 202KB
• pkbk-20240331_lab.xml (EX-101.LAB) — 446KB
• pkbk-20240331_pre.xml (EX-101.PRE) — 355KB
• pkbk-20240331_htm.xml (XML) — 2543KB

FINANCIAL INFORMATION

Part I FINANCIAL INFORMATION

Financial Statements 1

Item 1. Financial Statements 1 Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (unaudited) 1 Consolidated Statements of Income for the three months ended March 31, 2024 and 202 3 (unaudited) 2 Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 (unaudited) 3 Consolidated Statements of Equity for the three months ended March 31, 2024 and 2023 (unaudited) 4 Consolidated Statements of Cash Flow for the three months ended March 31, 2024 and 2023 (unaudited) 5

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk 30

Item 3. Quantitative and Qualitative Disclosures About Market Risk 30

Controls and Procedures 30

Item 4. Controls and Procedures 30

OTHER INFORMATION

Part II OTHER INFORMATION

Legal Proceedings 30

Item 1. Legal Proceedings 30

Risk Factors 31

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds 31

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Defaults Upon Senior Securities 31

Item 3. Defaults Upon Senior Securities 31

Mine Safety Disclosures 31

Item 4. Mine Safety Disclosures 31

Other Information 31

Item 5. Other Information 31

Exhibits 32

Item 6. Exhibits 32 SIGNATURES 33

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Parke Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) (Dollars in thousands except per share data) March 31, 2024 December 31, 2023 Assets Cash and due from banks $ 7,624 $ 12,716 Interest bearing deposits with banks 163,469 167,660 Cash and cash equivalents 171,093 180,376 Investment securities available for sale, at fair value 6,640 7,095 Investment securities held to maturity, net of allowance for credit losses of $ 0 at March 31, 2024 and December 31, 2023 (fair value of $ 7,685 at March 31, 2024 and $ 7,892 at December 31, 2023) 9,271 9,292 Total investment securities 15,911 16,387 Loans, net of unearned income 1,785,542 1,787,340 Less: Allowance for credit losses ( 31,918 ) ( 32,131 ) Net loans 1,753,624 1,755,209 Accrued interest receivable 8,865 8,555 Premises and equipment, net 5,501 5,579 Restricted stock 6,298 7,636 Bank owned life insurance (BOLI) 28,575 28,415 Deferred tax asset 9,271 9,262 Other real estate owned (OREO) 1,550 1,550 Other 8,385 10,531 Total assets $ 2,009,073 $ 2,023,500 Liabilities and Shareholders' Equity Liabilities Deposits Noninterest-bearing deposits $ 196,388 $ 232,189 Interest-bearing deposits 1,367,316 1,320,638 Total deposits 1,563,704 1,552,827 FHLBNY borrowings 95,000 125,000 Subordinated debentures 43,158 43,111 Accrued interest payable 4,398 4,146 Other 14,427 14,099 Total liabilities 1,720,687 1,739,183 Shareholders' Equity Preferred stock, 1,000,000 shares authorized, $ 1,000 liquidation value Series B non-cumulative convertible; 375 shares outstanding at March 31, 2024 and December 31, 2023 375 375 Common stock, $ 0.10 par value; authorized 15,000,000 shares; Issued: 12,247,343 shares and 12,240,821 shares at March 31, 2024 and December 31, 2023, respectively 1,225 1,224 Additional paid-in capital 136,801 136,700 Retained earnings 153,430 149,437 Accumulated other comprehensive loss ( 430 ) ( 404 ) Treasury sto

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) NOTE 1. ORGANIZATION Parke Bancorp, Inc. (the "Company, we, us, our") is a bank holding company headquartered in Sewell, New Jersey. Through subsidiaries, the Company provides individuals, corporations and other businesses and institutions with commercial and retail banking services, principally loans and deposits. The Company was incorporated in January 2005 under the laws of the State of New Jersey for the sole purpose of becoming the holding company of Parke Bank (the "Bank"). The Bank is a commercial bank, which was incorporated on August 25, 1998, and commenced operations on January 28, 1999 . The Bank is chartered by the New Jersey Department of Banking and Insurance and its deposits are insured by the Federal Deposit Insurance Corporation. The Bank maintains its principal office at 601 Delsea Drive, Sewell, New Jersey, and has six additional branch office locations; 501 Tilton Road, Northfield, New Jersey, 567 Egg Harbor Road, Washington Township, New Jersey, 67 East Jimmie Leeds Road, Galloway Township, New Jersey, 1150 Haddon Avenue, Collingswood, New Jersey, 1610 Spruce Street, Philadelphia, Pennsylvania, and 1032 Arch Street, Philadelphia, Pennsylvania. The Bank also has a loan office located at 1817 East Venango Street, Philadelphia, Pennsylvania. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Financial Statement Presentation: We prepared our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Parke Bank (including certain partnership interests). Parke Capital Trust I, Parke Capital Trust II and Parke Capital Trust III are wholly-owned subsidiaries but are not consolidated as they do not meet the requirements for consolidation under applicable accounting guidance. We have elimin

Description of Securities Fair

Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousand) Available for sale: Residential mortgage-backed securities $ 80 $ — $ 6,439 $ 580 $ 6,519 $ 580 Total available for sale $ 80 $ — $ 6,439 $ 580 $ 6,519 $ 580 As of December 31, 2023 Less Than 12 Months 12 Months or Greater Total

Description of Securities Fair

Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) Available for sale: Residential mortgage-backed securities $ 25 $ — $ 6,870 $ 547 $ 6,895 $ 547 Total available for sale $ 25 $ — $ 6,870 $ 547 $ 6,895 $ 547 The Company's unrealized loss for the debt securities is comprised of 8 securities in the less than 12 months loss position and 20 securities in the 12 months or greater loss position at March 31, 2024. The mortgage-backed securities that had unrealized losses were issued or guaranteed by the US government or US government sponsored entities. The unrealized losses associated with those mortgage-backed securities are generally driven by changes in interest rates and are not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. The states and political subdivisions securities that had unrealized losses were issued by a school district, and the loss is attributed to changes in interest rates and not due to credit losses. Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, the Company does not consider the unrealized loss in these securities to be credit losses at March 31, 2024. 8 NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS At March 31, 2024 and December 31, 2023, the Company had $ 1.79 billion and $ 1.79 billion, respectively, in loans receivable outstanding. Outstanding balances include $ 2.4 million and $ 2.7 million at March 31, 2024 and December 31, 2023, respectively, for net deferred loan costs, and unamortized discounts. The portfolio segments of loans receivable at March 31, 2024 and December 31, 2023, consist of the following: March 31, 2024 December 31, 2023 (Dollars in thousands) Commercial and Industrial $ 37,002 $ 35,451 Construction 142,178 157,556

View Full Filing

View this 10-Q filing on SEC EDGAR