Parke Bancorp Inc. has a market cap of $43.5 million; its shares were traded at around $9.9 with a P/E ratio of 6.94 and P/S ratio of 1.09. Parke Bancorp Inc. had an annual average earning growth of 14% over the past 5 years.
Highlight of Business Operations:Total investment securities decreased to $29.9 million at September 30, 2010 ($27.9 million classified as available-for-sale or 93.3%) from $31.9 million at December 31, 2009, an decrease of $2.0 million or 6.4%. The Company received $7.1 million in cash flow from maturities and principal payments, offset by purchases of $1.8 million. In addition, the fair value of the available-for sale portfolio increased by $3.3 million, primarily related to the CDO portfolio, which reflected lower levels of unrealized losses.
Delinquent loans decreased $509,000 to $32.3 million or 5.1% of total loans at September 30, 2010 from $32.8 million or 5.4% of total loans at December 31, 2009. Delinquent loan balances by number of days delinquent were: 31 to 59 days --- $6.1 million; 60 to 89 days --- $2.9 million; and 90 days and greater --- $23.3 million. Loans 90 days and more past due are no longer accruing interest.
At September 30, 2010, the Company had $23.3 million in non-performing loans or 3.7% 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 to collateral properties in settlement of twelve loan balances. The three largest relationships in non-performing loans are a $6.1 million residential loan, a $3.2 million residential construction loan, and a $2.3 million residential construction loan.
At September 30, 2010, Parke Bancorp's allowance for loan losses increased to $13.4 million from $12.4 million at December 31, 2009, an increase of $1.0 million or 8.3%. The ratio of allowance for loan losses to total loans increased to 2.12% at September 30, 2010 from 2.06% at December 31, 2009. During the nine month period ended September 30, 2010, the Company charged-off $5.4 million in loans, due to estimated collateral deficiencies on impaired loans and loans that were transferred to Other Real Estate Owned in settlement of the loan balances. Specific allowances for loan losses have been established in the amount of $1.3 million on impaired loans totaling $54.6 million at September 30, 2010. To the best of our knowledge, we have provided for all losses that are both probable and reasonably estimable at September 30, 2010 and December 31, 2009.
At September 30, 2010, the Bank s total deposits increased to $599.0 million from $520.3 million at December 31, 2009, an increase of $78.7 million or 15.1%, largely due to an increase in the levels of retail certificates of deposit. Retail certificate of deposits increased $69.9 million, or 42.2%, to $235.7 million at September 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 $18.6 million, or 19.4%, to $77.5 million at September 30, 2010 from $96.1 million at December 31, 2009.
Non-interest Expense: Non-interest expense increased $2.0 million to $8.3 million for the nine months ended September 30, 2010, from $6.3 million for the nine months ended September 30, 2009. Compensation and benefits expenses increased $675,000 due to increased staffing related to the SBA subsidiary, the new branch, annual merit raises and higher fringe benefit costs. Professional fees increased $242,000 primarily related to legal fees associated with loan workouts. In addition, the Company recorded a $618,000 charge related to the funding of a letter of credit due to a borrower s nonperformance, which is included in Other Operating Expenses.
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