PARKE BANCORP, INC. ANNOUNCES FOURTH QUARTER 2025 EARNINGS
MWN-AI** Summary
Parke Bancorp, Inc. (NASDAQ: PKBK) has revealed its financial results for the fourth quarter and fiscal year ending December 31, 2025. The company reported significant growth in net income, reaching $11.1 million, or $0.94 per basic share, marking a 49.9% increase from the same quarter last year. This rise in earnings was mainly propelled by a $6.2 million increase in net interest income, despite higher provisions for credit losses and non-interest expenses.
Total revenue for the quarter amounted to $38.2 million, a 2.3% increase from Q3 2025, while total assets grew to $2.25 billion—up 5.0% from December 2024. The company's loan portfolio saw an impressive expansion, totaling $2.04 billion, reflecting an 8.9% year-over-year increase. Deposits also rose substantially, amounting to $1.76 billion, an increase of 7.8%.
For the entire fiscal year, net income was up by 37.3% to $37.8 million, driven by a notable 30.2% increase in net interest income to $76.5 million. However, non-interest income fell by 20.8% compared to the previous year, and expenses increased, largely due to higher professional services and compensation costs.
CEO Vito S. Pantilione remarked on the challenging economic landscape of 2025, which included fluctuating policies under the new administration and geopolitical tensions. Despite these external factors, Parke Bancorp managed to improve operational efficiency, achieving a Cost Efficiency Ratio of 35.03% and strengthening asset quality with reduced nonperforming loans.
Looking ahead, Pantilione indicated a focus on navigating interest rate uncertainties while maintaining robust financial health and positioning for future growth opportunities.
MWN-AI** Analysis
**Market Analysis and Advice for Parke Bancorp, Inc. (NASDAQ: PKBK)**
Parke Bancorp, Inc. has reported strong fourth-quarter results for 2025, showcasing a compelling expansion in net income, which increased by 49.9% year-over-year to $11.1 million. The robust performance is largely attributed to a substantial 39.7% rise in net interest income, driven by higher loan balances and interest rates, countered slightly by increased provisions for credit losses and non-interest expenses.
Financial metrics justify a positive outlook. The company’s return on average assets rose to 1.77%, and return on average common equity improved to 12.07%. These figures reflect effective asset utilization and solid profitability. Furthermore, net interest margin expanded to 3.64%, the highest in recent periods, indicating a favorable interest rate environment that Parke has adeptly navigated.
Total loans increased by 8.9% year-over-year, reflective of aggressive growth strategies in the commercial real estate sector. Despite a slight uptick in nonperforming loans, which were effectively managed, the allowance for credit losses presents a comfortable safety net at 1.70% of total loans.
Investors should consider the potential for continued growth, especially as interest rates remain uncertain. The strategic focus on increasing loan portfolios and improving asset quality positions Parke Bancorp favorably against its peers. However, vigilance is warranted due to the geopolitical and economic factors that influenced market volatility in 2025.
In terms of stock valuation, the current earnings per share of $3.16 can be viewed favorably in the context of growth potential, particularly as the company demonstrates disciplined expense management and an improved efficiency ratio of 35.03%.
In conclusion, investors seeking growth in the banking sector may view Parke Bancorp as a compelling opportunity given its strong fundamentals and effective management strategy. Continuous monitoring of the macroeconomic landscape and interest rate movements will be critical in making informed investment decisions.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
Highlights: | |
Net Income: | $11.1 million for Q4 2025, increased 4.3% from Q3 2025 |
Revenue: | $38.2 million for Q4 2025, increased 2.3% over Q3 2025 |
Total Assets: | $2.25 billion, increased 5.0% from December 31, 2024 |
Total Loans: | $2.04 billion, increased 8.9% from December 31, 2024 |
Total Deposits: | $1.76 billion, increased 7.8% from December 31, 2024 |
WASHINGTON TOWNSHIP, N.J., Jan. 22, 2026 /PRNewswire/ -- Parke Bancorp, Inc. ("Parke Bancorp" or the "Company") (NASDAQ: "PKBK"), the parent company of Parke Bank (the "Bank"), announced its operating results for the quarter and fiscal year ended December 31, 2025.
Highlights for the fourth quarter and year ended December 31, 2025:
- Net income available to common shareholders was $11.1 million, or $0.94 per basic common share and $0.93 per diluted common share, for the three months ended December 31, 2025, an increase of $3.7 million, or 49.9%, compared to net income available to common shareholders of $7.4 million, or $0.62 per basic common share and $0.61 per diluted common share, for the three months ended December 31, 2024. The increase is primarily driven by a $6.2 million increase in net interest income, partially offset by a $0.4 million increase in provision for credit losses, and a $0.7 million increase in non-interest expense.
- Net interest income increased 39.7% to $21.8 million for the three months ended December 31, 2025, compared to $15.6 million for the same period in 2024.
- The Company recorded a provision for credit losses of $0.5 million for the three months ended December 31, 2025, compared to a provision for credit losses of $0.2 million for the same period in 2024.
- Non-interest income decreased $0.2 million, or 19.2%, to $0.9 million for the three months ended December 31, 2025, compared to $1.1 million for the same period in 2024.
- Non-interest expense increased $0.7 million, or 10.8%, to $7.6 million for the three months ended December 31, 2025, compared to $6.9 million for the same period in 2024.
- Net income available to common shareholders was $37.8 million, or $3.20 per basic common share and $3.16 per diluted common share, for the fiscal year ended December 31, 2025, an increase of $10.3 million, or 37.3%, compared to net income available to common shareholders of $27.5 million, or $2.30 per basic common share and $2.27 per diluted common share, for the fiscal year ended December 31, 2024. The increase was primarily due to a $17.8 million increase in net interest income, partially offset by a $1.8 million increase in the provision for credit losses, a $0.9 million decrease in non-interest income, and a $2.0 million increase in non-interest expense.
- Net interest income increased 30.2% to $76.5 million for the fiscal year ended December 31, 2025, compared to $58.7 million for the fiscal year ended December 31, 2024.
- Provision for credit losses increased $1.8 million to $2.5 million for the fiscal year ended December 31, 2025, compared to a provision for credit losses of $0.7 million for the fiscal year ended December 31, 2024.
- Non-interest income decreased $0.9 million, or 20.8%, to $3.4 million for the fiscal year ended December 31, 2025, compared to $4.3 million for the fiscal year ended December 31, 2024.
- Non-interest expense increased $2.0 million, or 7.7%, to $28.0 million, for the fiscal year ended December 31, 2025, compared to $26.0 million for the fiscal year ended December 31, 2024.
The following is a recap of the significant items that impacted the fourth quarter of 2025 and the fiscal year ended December 31, 2025:
Interest income increased $4.0 million for the fourth quarter of 2025 compared to the fourth quarter of 2024, primarily due to an increase in interest and fees on loans of $5.2 million to $36.0 million, due to higher average outstanding loan balances and higher interest rates. The increase in interest income during the fourth quarter of 2025 was partially offset by a decrease in interest earned on average deposits held at the Federal Reserve Bank ("FRB") of $1.1 million, to $1.1 million, from $2.2 million in the fourth quarter of 2024. The decrease was due to lower cash balances held at the FRB and lower interest rates earned on those balances. For the year ended December 31, 2025, interest income increased $17.6 million, or 14.0%, from the fiscal year ended December 31, 2024, primarily driven by an increase in interest and fees on loans of $17.4 million, due to higher average outstanding loan balances and higher interest rates, as well as an increase in interest earned on average deposits held at the FRB of $0.3 million.
Interest expense decreased $2.2 million for the three months ended December 31, 2025, compared to the same period in 2024, primarily due to lower market interest rates, as well as a change in the deposit mix with a reduction in higher cost money market deposits and an increase in interest checking deposits. For the year ended December 31, 2025, interest expense decreased $0.2 million compared to the fiscal year ended December 31, 2024, primarily due to lower market interest rates, as well as a change in the deposit and debt mix.
The provision for credit losses increased $0.4 million for the three months ended December 31, 2025, compared to the same period in 2024, as a result of an increase in outstanding loan balances, partially offset by a decrease in vintage and qualitative loss rates. For the year ended December 31, 2025, the provision for credit losses increased $1.8 million from the fiscal year ended December 31, 2024 due to an increase in outstanding loan balances, partially offset by a decrease in vintage and qualitative loss rates.
Non-interest income decreased $0.2 million for the three months ended December 31, 2025 compared to the same period in 2024, primarily as a result of a decrease in other income of $0.2 million. For the year ended December 31, 2025, non-interest income decreased $0.9 million compared to the fiscal year ended December 31, 2024, primarily driven by a decrease in other income of $0.6 million, a decrease in loan fees of $0.2 million, and a decrease in service fees on deposit accounts of $0.2 million. The decrease in other income during the year ended December 31, 2025, was primarily attributable to a decrease in one-time insurance payments and settlements received in 2024.
Non-interest expense increased $0.7 million for the three months ended December 31, 2025 compared to the same period in 2024, primarily driven by an increase in other operating expense of $0.3 million, OREO expense of $0.3 million, and compensation and benefits expense of $0.1 million. For the fiscal year ended December 31, 2025, non-interest expense increased $2.0 million, primarily due to an increase in professional services of $0.7 million, an increase in compensation and benefits expense of $0.5 million, and an increase in other operating expense of $0.5 million, partially offset by a decrease in OREO expense of $0.2 million. The increase in professional services during the year ended December 31, 2025, was primarily due to a $0.6 million increase in legal fees. The increase in compensation and benefits expense was primarily due to an increase in salaries of $0.4 million, and a $0.1 million decrease in deferred loan origination costs attributable to a reduction in the number of loans originated.
Income tax expense increased $1.2 million for the three months ended December 31, 2025 compared to the same period in 2024. For the year ended December 31, 2025, income tax expense increased $2.8 million compared to the fiscal year ended December 31, 2024. The effective tax rate for the fourth quarter of 2025 and the year ended December 31, 2025 was 24.1% and 23.5%, respectively, compared to 23.9% and 24.2% for the same periods in 2024.
December 31, 2025 discussion of financial condition
- Total assets increased to $2.25 billion at December 31, 2025, from $2.14 billion at December 31, 2024, an increase of $107.2 million, or 5.0%.
- Cash and cash equivalents totaled $156.9 million at December 31, 2025, as compared to $221.5 million at December 31, 2024.
- The investment securities portfolio decreased to $13.5 million at December 31, 2025, from $14.8 million at December 31, 2024, a decrease of $1.2 million, or 8.4%, primarily due to pay downs of securities.
- Gross loans increased to $2.04 billion at December 31, 2025, from $1.87 billion at December 31, 2024, an increase of $167.1 million or 8.9%. The increase in loans was primarily due to an increase in the CRE non-owner occupied loan portfolio of $112.9 million, an increase in the construction portfolio loan balance of $64.4 million, and an increase in the CRE owner occupied loan portfolio balance of $22.7 million, partially offset by a decrease in the residential 1 - 4 family investment portfolio balance of $29.6 million.
- Nonperforming loans at December 31, 2025 decreased to $10.8 million, representing 0.53% of total loans, a decrease of $1.0 million, from $11.8 million of nonperforming loans at December 31, 2024. The decrease was primarily driven by a $1.5 million decrease in the CRE non-owner occupied loan portfolio, partially offset by a $0.3 million increase in the residential - 1 - 4 family portfolio, and a $0.1 million increase in the consumer portfolio. OREO at December 31, 2025 was $2.9 million, an increase of $1.3 million, from $1.6 million at December 31, 2024. Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.61% and 0.62% of total assets at December 31, 2025 and December 31, 2024, respectively. Loans past due 30 to 89 days were $3.5 million at December 31, 2025, an increase of $2.0 million from December 31, 2024.
- The allowance for credit losses was $34.6 million at December 31, 2025, as compared to $32.6 million at December 31, 2024. The ratio of the allowance for credit losses to total loans was 1.70% and 1.74% at December 31, 2025 and at December 31, 2024, respectively. The ratio of allowance for credit losses to non-performing loans was 321.0% at December 31, 2025, compared to 276.5%, at December 31, 2024.
- Total deposits were $1.80 billion at December 31, 2025, up from $1.63 billion at December 31, 2024, an increase of $127.6 million or 7.8% compared to December 31, 2024. The increase in deposits was attributed to an increase in money market deposits of $130.5 million, interest checking deposits of $49.4 million, and non-interest checking of $12.5 million, partially offset by a decrease in brokered time deposits of $41.9 million, time deposits of $11.4 million, and savings deposits of $11.4 million. Brokered interest checking deposits, included in the above balances, increased $45.0 million at December 31, 2025, from zero at December 31, 2024. Deposits from our cannabis related businesses decreased $90.0 million to $61.9 million at December 31, 2025, compared to $151.9 million at December 31, 2024.
- Total borrowings decreased $44.9 million during the twelve months ended December 31, 2025, to $143.4 million at December 31, 2025 from $188.3 million at December 31, 2024, primarily due to the repayment of $30.0 million of subordinated debt, and a decrease of $15.0 million in Federal Home Loan Bank of New York ("FHLBNY") advances.
- Total equity increased to $324.5 million at December 31, 2025, up from $300.1 million at December 31, 2024, an increase of $24.4 million, or 8.1%, primarily due to the retention of earnings, partially offset by the payment of $8.5 million of cash dividends, and the repurchase of Company common stock of $6.5 million.
CEO outlook and commentary
Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, provided the following statement:
"2025 was a challenging year, an outcome that is not unusual when a new President takes office. Donald Trump was sworn in for his second term as President of the United States and immediately set an aggressive pace. Significant policy shifts were enacted early, including new tariffs, expanded gas drilling, strengthened border protection measures, and renewed efforts to address illegal immigration. Tensions also emerged between the Administration and Federal Reserve Chairman Jerome Powell, with the Administration pushing for faster rate cuts while the Fed adopted a more cautious 'wait?and?see' approach."
"The geopolitical landscape shifted quickly as well. Major diplomatic efforts were launched to advance peace in the Middle East, and repeated, though ultimately unsuccessful, attempts were made to bring an end to the Russia–Ukraine war. These and other factors contributed to the heightened volatility that defined 2025."
"Despite this environment, 2025 was a good year for Parke Bank. Net income available to common shareholders rose 37.3% over 2024, reaching $37.8 million, or $3.16 per diluted common share. This performance was driven by increased net interest income and continued disciplined expense management, resulting in an improved Cost Efficiency Ratio of 35.03%. Return on Average Assets strengthened to 1.77%, while Return on Average Common Equity increased to 12.07% at December 31, 2025."
"Total loans grew 8.9% over 2024, ending the year at $2.04 billion. This growth was supported by a $2.1 million increase in the allowance for credit losses. Asset quality remains a primary focus: nonperforming loans decreased by $1 million year?over?year as of December 31, 2025, and the allowance for credit losses stood at 1.7% of total loans."
"Looking ahead, uncertainty surrounding interest rates is expected to continue into 2026, with unusually diverse viewpoints emerging among Federal Reserve Board members regarding the future direction of rates. Our balance sheet is structured to remain nimble and responsive to changes in the interest rate environment. Strong earnings, robust shareholder equity, and disciplined expense control, position the Company to monitor market conditions carefully and act quickly to capitalize on emerging opportunities, while continuing to operate a safe, sound, and resilient financial institution."
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 strong capital, strong asset quality and strong reserves; our ability to remain nimble and responsive to changes in the rate environment; our ability to generate strong earnings with increased interest income and net interest income; our ability to continue the financial strength and growth of our Company and Parke Bank; our ability to continue to increase shareholders' equity, maintain good credit quality; our ability to be well structured to face challenging economic conditions; our ability to ensure that our loan loss provision is well positioned for the future; our ability to continue to reduce our nonperforming loans and delinquencies and the expenses associated with them; our ability to realize a high recovery rate on disposition of troubled assets; our ability to continue to pay a dividend in the future; our ability to enhance shareholder value in the future; our ability to continue growing our Company, our earnings and shareholders' equity; and our ability to continue to grow our loan portfolio; the possibility of additional corrective actions or limitations on the operations of Parke Bancorp, Inc. and Parke Bank being imposed by banking regulators, therefore, readers should not place undue reliance on any forward-looking statements. Parke Bancorp, Inc. 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 | |||||||
December 31, | December 31, | ||||||
2025 | 2024 | ||||||
(Dollars in thousands) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 156,863 | $ | 221,527 | |||
Investment securities | 13,523 | 14,760 | |||||
Loans, net of unearned income | 2,035,227 | 1,868,153 | |||||
Less: Allowance for credit losses | (34,649) | (32,573) | |||||
Net loans | 2,000,578 | 1,835,580 | |||||
Premises and equipment, net | 5,506 | 5,316 | |||||
Bank owned life insurance (BOLI) | 35,320 | 29,070 | |||||
Other assets | 37,646 | 35,983 | |||||
Total assets | $ | 2,249,436 | $ | 2,142,236 | |||
Liabilities and Equity | |||||||
Non-interest bearing deposits | $ | 196,506 | $ | 184,037 | |||
Interest bearing deposits | 1,562,163 | 1,447,013 | |||||
FHLBNY borrowings | 130,000 | 145,000 | |||||
Subordinated debentures | 13,403 | 43,300 | |||||
Other liabilities | 22,846 | 22,813 | |||||
Total liabilities | 1,924,918 | 1,842,163 | |||||
Total shareholders' equity | 324,518 | 300,073 | |||||
Total liabilities and shareholders' equity | $ | 2,249,436 | $ | 2,142,236 |
Table 2: Consolidated Income Statements (Unaudited) | |||||||||||||||
For the Three Months Ended | For the Twelve Months | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||
Interest income: | |||||||||||||||
Interest and fees on loans | $ | 36,047 | $ | 30,857 | $ | 135,189 | $ | 117,834 | |||||||
Interest and dividends on investments | 183 | 281 | 921 | 1,042 | |||||||||||
Interest on deposits with banks | 1,068 | 2,188 | 6,567 | 6,237 | |||||||||||
Total interest income | 37,298 | 33,326 | 142,677 | 125,113 | |||||||||||
Interest expense: | |||||||||||||||
Interest on deposits | 14,151 | 15,189 | 59,848 | 57,312 | |||||||||||
Interest on borrowings | 1,331 | 2,518 | 6,371 | 9,093 | |||||||||||
Total interest expense | 15,482 | 17,707 | 66,219 | 66,405 | |||||||||||
Net interest income | 21,816 | 15,619 | 76,458 | 58,708 | |||||||||||
Provision for credit losses | 546 | 182 | 2,484 | 728 | |||||||||||
Net interest income after provision for credit losses | 21,270 | 15,437 | 73,974 | 57,980 | |||||||||||
Non-interest income | |||||||||||||||
Service fees on deposit accounts | 308 | 328 | 1,232 | 1,387 | |||||||||||
Other loan fees | 166 | 231 | 676 | 849 | |||||||||||
Bank owned life insurance income | 233 | 167 | 740 | 655 | |||||||||||
Other | 212 | 412 | 759 | 1,410 | |||||||||||
Total non-interest income | 919 | 1,138 | 3,407 | 4,301 | |||||||||||
Non-interest expense | |||||||||||||||
Compensation and benefits | 3,441 | 3,302 | 13,314 | 12,768 | |||||||||||
Professional services | 1,173 | 1,089 | 3,428 | 2,730 | |||||||||||
Occupancy and equipment | 708 | 655 | 2,760 | 2,598 | |||||||||||
Data processing | 270 | 389 | 1,544 | 1,366 | |||||||||||
FDIC insurance and other assessments | 359 | 333 | 1,449 | 1,306 | |||||||||||
OREO expense | 330 | 59 | 649 | 835 | |||||||||||
Other operating expense | 1,310 | 1,023 | 4,830 | 4,381 | |||||||||||
Total non-interest expense | 7,591 | 6,850 | 27,974 | 25,984 | |||||||||||
Income before income tax expense | 14,598 | 9,725 | 49,407 | 36,297 | |||||||||||
Income tax expense | 3,514 | 2,327 | 11,632 | 8,785 | |||||||||||
Net income attributable to Company | 11,084 | 7,398 | 37,775 | 27,512 | |||||||||||
Less: Preferred stock dividend | (5) | (5) | (20) | (20) | |||||||||||
Net income available to common shareholders | $ | 11,079 | $ | 7,393 | $ | 37,755 | $ | 27,492 | |||||||
Earnings per common share | |||||||||||||||
Basic | $ | 0.94 | $ | 0.62 | $ | 3.20 | $ | 2.30 | |||||||
Diluted | $ | 0.93 | $ | 0.61 | $ | 3.16 | $ | 2.27 | |||||||
Weighted average common shares outstanding | |||||||||||||||
Basic | 11,728,393 | 11,937,412 | 11,794,531 | 11,954,483 | |||||||||||
Diluted | 11,918,246 | 12,153,318 | 11,972,022 | 12,139,451 |
Table 3: Operating Ratios | ||||||||||||||||
Three months ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Return on average assets | 2.04 | % | 1.41 | % | 1.77 | % | 1.38 | % | ||||||||
Return on average common equity | 13.69 | % | 9.82 | % | 12.07 | % | 9.36 | % | ||||||||
Interest rate spread | 3.21 | % | 2.01 | % | 2.70 | % | 1.94 | % | ||||||||
Net interest margin | 4.09 | % | 3.02 | % | 3.64 | % | 3.00 | % | ||||||||
Efficiency ratio* | 33.39 | % | 40.88 | % | 35.03 | % | 41.24 | % |
* 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 | ||||||
December 31, | December 31, | |||||
2025 | 2024 | |||||
(Amounts in thousands except ratio data) | ||||||
Allowance for credit losses | $ | 34,649 | $ | 32,573 | ||
Allowance for credit losses to total loans | 1.70 | % | 1.74 | % | ||
Allowance for credit losses to non-accrual loans | 321.00 | % | 276.46 | % | ||
Non-accrual loans | $ | 10,793 | $ | 11,782 | ||
OREO | $ | 2,862 | $ | 1,562 |
SOURCE Parke Bancorp, Inc.
FAQ**
How has the increase in net interest income contributed to Parke Bancorp Inc. PKBK's overall financial performance in Q4 2025, and what specific strategies were implemented to achieve this growth?
With total deposits increasing by 7.8% year-over-year, what are the key factors driving deposit growth for Parke Bancorp Inc. PKBK, and how does the company plan to maintain this momentum in 2026?
What measures is Parke Bancorp Inc. PKBK taking to manage the provision for credit losses, especially considering the increase in outstanding loan balances and the associated risks?
In light of the challenges faced in 2025, what strategic initiatives will Parke Bancorp Inc. PKBK focus on to ensure continued growth and resilience in the face of economic uncertainties in 2026?
**MWN-AI FAQ is based on asking OpenAI questions about Parke Bancorp Inc. (NASDAQ: PKBK).
NASDAQ: PKBK
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