Parke Bancorp Inc. (PKBK, Financial) filed Quarterly Report for the period ended 2009-06-30.
Parke Bancorp\'s wholly-owned subsidiary Parke Bank is a New Jersey-chartered commercial bank. The Bank provides full-service banking to individuals and small to mid- size businesses in Gloucester Atlantic and Cape May counties in New Jersey as well as the Philadelphia area. Parke Bancorp Inc. has a market cap of $39.6 million; its shares were traded at around $9.83 with a P/E ratio of 8.6 and P/S ratio of 1.1.
At June 30, 2009, the Company had $16.1 million in non-performing loans or 2.7% of total loans, an increase from $8.2 million or 1.5% of total loans at December 31, 2008. The three largest relationships in non-performing loans are $5.3 million, $4.5 million, and $4.3 million. All three are comprised of residential and multi-family construction loans.
9.3%, to $20.2 million at June 30, 2009 from $22.3 million at December 31, 2008. NOW and money market accounts increased $13.3 million, or 19.1%, to $83.0 million at June 30, 2009 from $69.7 million at December 31, 2008. Savings accounts increased $48.6 million, or 84.6%, to $106.0 million at June 30, 2009 from $57.4 million at December 31, 2008. Retail certificate of deposits increased $12.1 million, or 7.1%, to $181.9 million at June 30, 2009 from $169.8 million at December 31, 2008. This growth, generated through a successful marketing campaign to increase core deposits, has allowed us to reduce brokered deposits, which decreased $42.7 million, or 24.2%, to $133.4 million at June 30, 2009 from $176.1 million at December 31, 2008.
At June 30, 2009, total shareholders’ equity increased to $58.4 million from $40.3 million at December 31, 2008, an increase of $18.1 million or 44.9%. In addition to net income of $2.8 million, perpetual preferred stock issued under the Treasury Capital Purchase Program (CPP) totaling $16.3 million, contributed to the increase.
Non-interest Income: Non-interest income decreased $821,000 to a loss of $830,000 for the six months ended June 30, 2009, from a loss of $9,000 for the six months ended June 30, 2008. The decrease resulted from the Company recognizing an other-than-temporary impairment charge to non-interest income on CMO’s totaling $1.2 million for the six month period ended June 30, 2009. In addition, during the current quarter, the Company recognized $159,000 in losses related to the sale of foreclosed real estate. This was partially offset by an increase of $148,000 in other miscellaneous income, the majority of which was the reimbursement of legal fees previously charged to expense. The 2008 period included an other-than-temporary impairment charge of $488,000 on FNMA and FHLMC preferred stock.
Non-interest Expense: Non-interest expense increased $863,000 to $4.3 million for the six months ended June 30, 2009, from $3.4 million for the six months ended June 30, 2008. The increase includes a special assessment by the FDIC of $284,000. Compensation and benefits expenses increased $279,000 due to increased staffing, annual merit raises, and higher fringe benefit costs. Professional services increased by $65,000 due to legal fees associated with SEC and U.S. Treasury Department filings related to the EESA capital program.
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Parke Bancorp\'s wholly-owned subsidiary Parke Bank is a New Jersey-chartered commercial bank. The Bank provides full-service banking to individuals and small to mid- size businesses in Gloucester Atlantic and Cape May counties in New Jersey as well as the Philadelphia area. Parke Bancorp Inc. has a market cap of $39.6 million; its shares were traded at around $9.83 with a P/E ratio of 8.6 and P/S ratio of 1.1.
Highlight of Business Operations:
Total loans increased to $592.2 million at June 30, 2009 from $547.7 million at December 31, 2008, an increase of $44.6 million or 8.1%, consistent with management’s plan for loan growth. Delinquent loans increased $18.6 million to $30.6 million or 5.2% of total loans at June 30, 2009 from $12.0 million or 2.2% of total loans at December 30, 2009. Delinquent loan balances by number of days delinquent were: 31 to 59 days --- $15.0 million; 60 to 89 days --- $3.9 million; and 90 days and greater --- $11.7 million.At June 30, 2009, the Company had $16.1 million in non-performing loans or 2.7% of total loans, an increase from $8.2 million or 1.5% of total loans at December 31, 2008. The three largest relationships in non-performing loans are $5.3 million, $4.5 million, and $4.3 million. All three are comprised of residential and multi-family construction loans.
9.3%, to $20.2 million at June 30, 2009 from $22.3 million at December 31, 2008. NOW and money market accounts increased $13.3 million, or 19.1%, to $83.0 million at June 30, 2009 from $69.7 million at December 31, 2008. Savings accounts increased $48.6 million, or 84.6%, to $106.0 million at June 30, 2009 from $57.4 million at December 31, 2008. Retail certificate of deposits increased $12.1 million, or 7.1%, to $181.9 million at June 30, 2009 from $169.8 million at December 31, 2008. This growth, generated through a successful marketing campaign to increase core deposits, has allowed us to reduce brokered deposits, which decreased $42.7 million, or 24.2%, to $133.4 million at June 30, 2009 from $176.1 million at December 31, 2008.
At June 30, 2009, total shareholders’ equity increased to $58.4 million from $40.3 million at December 31, 2008, an increase of $18.1 million or 44.9%. In addition to net income of $2.8 million, perpetual preferred stock issued under the Treasury Capital Purchase Program (CPP) totaling $16.3 million, contributed to the increase.
Non-interest Income: Non-interest income decreased $821,000 to a loss of $830,000 for the six months ended June 30, 2009, from a loss of $9,000 for the six months ended June 30, 2008. The decrease resulted from the Company recognizing an other-than-temporary impairment charge to non-interest income on CMO’s totaling $1.2 million for the six month period ended June 30, 2009. In addition, during the current quarter, the Company recognized $159,000 in losses related to the sale of foreclosed real estate. This was partially offset by an increase of $148,000 in other miscellaneous income, the majority of which was the reimbursement of legal fees previously charged to expense. The 2008 period included an other-than-temporary impairment charge of $488,000 on FNMA and FHLMC preferred stock.
Non-interest Expense: Non-interest expense increased $863,000 to $4.3 million for the six months ended June 30, 2009, from $3.4 million for the six months ended June 30, 2008. The increase includes a special assessment by the FDIC of $284,000. Compensation and benefits expenses increased $279,000 due to increased staffing, annual merit raises, and higher fringe benefit costs. Professional services increased by $65,000 due to legal fees associated with SEC and U.S. Treasury Department filings related to the EESA capital program.
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