FT Markets Data
Parke Bancorp Inc

PARKE BANCORP, INC. ANNOUNCES FIRST QUARTER 2026 EARNINGS

Highlights:




Net Income:

$11.8  million for Q1 2026, increased 6.9% over Q4 2025

EPS (diluted):

$0.99 for Q1 2026 compared to $0.93 for Q4 2025

ROAA:

2.19% for Q1 2026 compared to 2.04% for Q4 2025

ROAE:

14.47% for Q1 2026 compared to 13.69% for Q4 2025

NIM:

4.17% for Q1 2026 compared to 4.09% for Q4 2025

WASHINGTON TOWNSHIP, N.J. , April 17, 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 months ended March 31, 2026.

Highlights for the three months ended March 31, 2026:

  • 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.
  • 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.
  • 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.
  • 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.
  • 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

  • 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.
  • 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.
  • 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. 
  • 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.
  • 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.  
  • 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.
  • 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. 
  • 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. 
  • 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






March 31,



December 31,




2026



2025




(Dollars in thousands)


Assets









Cash and cash equivalents


$

110,874



$

156,863


Investment securities



13,126




13,523


Loans, net of unearned income



2,043,296




2,035,227


Less: Allowance for credit losses



(34,921)




(34,649)


Net loans



2,008,375




2,000,578


Premises and equipment, net



5,462




5,506


Bank owned life insurance (BOLI)



35,541




35,320


Other assets



39,557




37,646


Total assets


$

2,212,935



$

2,249,436











Liabilities and Equity


















Non-interest bearing deposits


$

164,105



$

196,506


Interest bearing deposits



1,342,975




1,346,834


Brokered Deposits



191,664




215,329


FHLBNY borrowings



140,000




130,000


Subordinated debentures



13,403




13,403


Other liabilities



25,225




22,846


Total liabilities



1,877,372




1,924,918











Total shareholders' equity



335,563




324,518











Total liabilities and equity


$

2,212,935



$

2,249,436


 

Table 2: Consolidated Income Statements (Unaudited)




Parke Bancorp, Inc. and Subsidiaries

Consolidated Income Statement






For the Three Months Ended




March 31,




2026



2025


Interest income:









Interest and fees on loans


$

35,891



$

31,476


Interest and dividends on investments



222




288


Interest on deposits with banks



827




2,082


Total interest income



36,940




33,846


Interest expense:









Interest on deposits



13,428




15,169


Interest on borrowings



1,380




2,070


Total interest expense



14,808




17,239


Net interest income



22,132




16,607


Provision for credit losses



202




590


Net interest income after provision for credit losses



21,930




16,017


Non-interest income









Service fees on deposit accounts



289




308


Other loan fees



161




178


Bank owned life insurance income



220




165


Other



183




170


Total non-interest income



853




821


Non-interest expense









Compensation and benefits



3,704




3,291


Professional services



598




714


Occupancy and equipment



761




687


Data processing



317




421


FDIC insurance and other assessments



373




350


OREO expense



80




127


Other operating expense



1,381




948


Total non-interest expense



7,214




6,538


Income before income tax expense



15,569




10,300


Income tax expense



3,725




2,522


Net income attributable to Company



11,844




7,778


Less: Preferred stock dividend



(5)




(5)


Net income available to common shareholders


$

11,839



$

7,773


Earnings per common share









Basic


$

1.01



$

0.66


Diluted


$

0.99



$

0.65


Weighted average common shares outstanding









Basic



11,706,574




11,836,384


Diluted



11,903,776




12,006,965


 

Table 3: Operating Ratios (unaudited)






Three months ended




March 31,




2026



2025


Return on average assets



2.19

%



1.48

%

Return on average common equity



14.47

%



10.36

%

Interest rate spread



3.34

%



2.32

%

Net interest margin



4.17

%



3.21

%

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)






March 31,



December 31,




2026



2025




(Amounts in thousands except ratio data)


Allowance for credit losses on loans


$

34,921



$

34,649


Allowance for credit losses to total loans



1.71

%



1.70

%

Allowance for credit losses to non-accrual loans



380.40

%



321.00

%

Non-accrual loans


$

9,181



$

10,793


OREO


$

2,862



$

2,862


 

Cision View original content:https://www.prnewswire.com/news-releases/parke-bancorp-inc-announces-first-quarter-2026-earnings-302745179.html

SOURCE Parke Bancorp, Inc.