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Parke Bancorp Inc. Reports Operating Results (10-Q)

August 16, 2010 | About:
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10qk

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Parke Bancorp Inc. (PKBK) filed Quarterly Report for the period ended 2010-06-30.

Parke Bancorp Inc. has a market cap of $39.95 million; its shares were traded at around $9 with a P/E ratio of 6.47 and P/S ratio of 1. Parke Bancorp Inc. had an annual average earning growth of 11.2% over the past 5 years.

Highlight of Business Operations:

Total investment securities increased to $33.9 million at June 30, 2010 ($31.4 million classified as available-for-sale or 92.6%) from $31.9 million at December 31, 2009, an increase of $2.0 million or 6.3%. The Company received $3.2 million in cash flow from principal payments, offset by purchases of $1.8 million. In addition, the fair value of the available-for sale portfolio increased by $3.4 million, primarily related to the CDO portfolio, which reflected lower levels of unrealized losses.

Delinquent loans decreased $8.9 million to $23.9 million or 3.9% of total loans at June 30, 2010 from $32.8 million or 5.4% of total loans at December 30, 2009. Delinquent loan balances by number of days delinquent were: 31 to 59 days --- $4.7 million; 60 to 89 days --- $2.2 million; and 90 days and greater --- $17.0 million. Loans 90 days and more past due are no longer accruing interest.

At June 30, 2010, the Company had $17.0 million in non-performing loans or 2.7% of total loans, a decrease from $25.5 million or 4.2% of total loans at December 31, 2009. The decrease is attributable to the Company receiving deeds in settlement of ten loan balances. The three largest relationships in non-performing loans are $4.5 million (residential construction), $2.1 million (commercial real estate), and $2.1 million (residential construction). Specific allowances for loan losses have been established in the amount of $2.8 million on impaired loans totaling $12.3 million at June 30, 2010.

At June 30, 2010, the Bank s total deposits increased to $561.2 million from $520.3 million at December 31, 2009, an increase of $40.9 million or 7.9%, largely due to an increase in the levels of retail certificates of deposit. Retail certificate of deposits increased $35.2 million, or 21.3%, to $201.1 million at June 30, 2010 from $165.8 million at December 31, 2009. This growth was generated through a successful marketing campaign and the opening of a new full-service retail branch. Brokered deposits decreased $6.1 million, or 6.3%, to $90.0 million at June 30, 2010 from $96.1 million at December 31, 2009.

Interest Income: Interest income increased $459,000, or 2.3%, to $20.4 million for the six months ended June 30, 2010, from $20.0 million for the six months June 30, 2009. The increase is attributable to higher loan volumes, offset by a lower yield on loans. Average loans for the six month period ended June 30, 2010 were $614.2 million compared to $574.0 million for the same period last year. The average yield on loans was 6.43% for the six months ended June 30, 2010 compared to 6.66% for the same period in 2009.

Interest Income: Interest income increased $156,000, or 1.5%, to $10.4 million for the three months ended June 30, 2010, from $10.2 million for the three months ended June 30, 2009. The increase is attributable to higher loan volumes, offset by a lower yield on loans. Average loans for the three month period ended June 30, 2010 were $617.7 million compared to $587.1 million for the same period last year. The average yield on loans was 6.45% for the three months ended June 30, 2010 compared to 6.63% for the same period in 2009.

Read the The complete Report

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