Parke Bancorp Files Q2 2024 10-Q

TL;DR

**Parke Bancorp Q2 2024 10-Q filed. Financials look solid.**

AI Summary

Parke Bancorp, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position, including its assets, liabilities, and equity. Specific financial figures and operational details for the second quarter of 2024 are presented.

Why It Matters

This filing provides investors and analysts with a detailed look at Parke Bancorp's financial health and operational performance during the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — As a financial institution, Parke Bancorp is subject to regulatory changes, interest rate fluctuations, and credit risks inherent in the banking sector.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 2024-08-07 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• PARKE BANCORP, INC. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240807 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• pkbk-20240630.htm (10-Q) — 2270KB
• pkbk-q2x6302024ex311.htm (EX-31.1) — 10KB
• pkbk-q2x6302024ex312.htm (EX-31.2) — 10KB
• pkbk-q2x6302024ex32.htm (EX-32) — 7KB
• 0001315399-24-000063.txt ( ) — 10881KB
• pkbk-20240630.xsd (EX-101.SCH) — 27KB
• pkbk-20240630_cal.xml (EX-101.CAL) — 100KB
• pkbk-20240630_def.xml (EX-101.DEF) — 203KB
• pkbk-20240630_lab.xml (EX-101.LAB) — 553KB
• pkbk-20240630_pre.xml (EX-101.PRE) — 411KB
• pkbk-20240630_htm.xml (XML) — 2748KB

FINANCIAL INFORMATION

Part I FINANCIAL INFORMATION

Financial Statements 1

Item 1. Financial Statements 1 Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 (unaudited) 1 Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 (unaudited) 2 Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 (unaudited) 3 Consolidated Statements of Equity for the three and six months ended June 30, 2024 and 2023 (unaudited) 4 Consolidated Statements of Cash Flow for the six months ended June 30, 2024 and 2023 (unaudited) 6

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 7

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 24

Quantitative and Qualitative Disclosures About Market Risk 33

Item 3. Quantitative and Qualitative Disclosures About Market Risk 33

Controls and Procedures 33

Item 4. Controls and Procedures 33

OTHER INFORMATION

Part II OTHER INFORMATION

Legal Proceedings 33

Item 1. Legal Proceedings 33

Risk Factors 34

Item 1A. Risk Factors 34

Unregistered Sales of Equity Securities and Use of Proceeds 34

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34

Defaults Upon Senior Securities 34

Item 3. Defaults Upon Senior Securities 34

Mine Safety Disclosures 34

Item 4. Mine Safety Disclosures 34

Other Information 34

Item 5. Other Information 34

Exhibits 35

Item 6. Exhibits 35 SIGNATURES 36

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) June 30, 2024 December 31, 2023 Assets Cash and due from banks $ 6,840 $ 12,716 Interest bearing deposits with banks 160,838 167,660 Cash and cash equivalents 167,678 180,376 Investment securities available for sale, at fair value 6,258 7,095 Investment securities held to maturity, net of allowance for credit losses of $ 0 at June 30, 2024 and December 31, 2023 (fair value of $ 7,564 at June 30, 2024 and $ 7,892 at December 31, 2023) 9,251 9,292 Total investment securities 15,509 16,387 Loans, net of unearned income 1,805,141 1,787,340 Less: Allowance for credit losses ( 32,425 ) ( 32,131 ) Net loans 1,772,716 1,755,209 Accrued interest receivable 9,067 8,555 Premises and equipment, net 5,441 5,579 Restricted stock 9,982 7,636 Bank owned life insurance (BOLI) 28,738 28,415 Deferred tax asset 9,262 9,262 Other real estate owned (OREO) 1,558 1,550 Other 7,187 10,531 Total assets $ 2,027,138 $ 2,023,500 Liabilities and Shareholders' Equity Liabilities Deposits Noninterest-bearing deposits $ 198,761 $ 232,189 Interest-bearing deposits 1,297,680 1,320,638 Total deposits 1,496,441 1,552,827 FHLBNY borrowings 175,000 125,000 Subordinated debentures 43,206 43,111 Accrued interest payable 5,052 4,146 Other 14,639 14,099 Total liabilities 1,734,338 1,739,183 Shareholders' Equity Preferred stock, 1,000,000 shares authorized, $ 1,000 liquidation value Series B non-cumulative convertible; 325 shares and 375 shares outstanding at June 30, 2024 and December 31, 2023, respectively 325 375 Common stock, $ 0.10 par value; authorized 15,000,000 shares; Issued: 12,254,220 shares and 12,240,821 shares at June 30, 2024 and December 31, 2023, respectively 1,225 1,224 Additional paid-in capital 136,946 136,700 Retained earnings 157,725 149,437 Accumulated other comprehensive loss ( 40

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 $ 130 $ 1 $ 6,070 $ 546 $ 6,200 $ 547 Total available for sale $ 130 $ 1 $ 6,070 $ 546 $ 6,200 $ 547 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 On at least a quarterly basis, we review all debt securities that are in an unrealized loss position for a credit loss. An investment security is deemed impaired if the fair value of the investment is less than its amortized cost. Amortized cost includes adjustments (if any) made to the cost basis of an investment for accretion, amortization, and previous other-than-temporary impairments. For individual debt securities classified as available for sale, we determine whether a decline in fair value below the amortized cost has resulted from a credit loss or other factors. If the decline in fair value is due to credit, we will record the portion of the impairment loss relating to credit through an allowance for credit losses. Impairment that has not been recorded through an allowance for credit losses is recorded through other comprehensive income, net of applicable taxes. The Company's unrealized loss for the debt securities classified as available for sale is comprised of 11 securities in the less than 12 months loss position and 16 securities in the 12 months or greater loss position at June 30, 2024. These securities are 9 mortgage-backed securities that had unrealized losses 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. 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 co

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