Parke Bancorp (PKBK) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Parke Bancorp, Inc.

601 Delsea Drive,

Washington Township, NJ 08080

Contact:

Vito S. Pantilione, President and CEO

John F. Hawkins, Senior Vice President and CFO

(856)256-2500

PARKE BANCORP, INC. ANNOUNCES FIRST QUARTER 2019 EARNINGS

WASHINGTON TOWNSHIP, NJ, April 16, 2019 - Parke Bancorp, Inc. (“Parke Bancorp”) (NASDAQ: “PKBK”), the parent company of Parke Bank, announced its operating results for the quarter ended March 31, 2019.

Highlights for the first quarter March 31, 2019:

• Net income available to common shareholders increased $1.5 million, or 27.9%, to $7.1 million, or $0.66 per basic common share and $0.65 per diluted common share for the first quarter of 2019, compared to net income available to common shareholders of $5.5 million, or $0.63 per basic common share and $0.53 per diluted common share, for the same period in 2018.

• Net interest income increased 21.8% to $13.4 million for the first quarter of 2019, compared to $11.0 million for the same quarter of 2018.

The following is a recap of the significant items that impacted the first quarter March 31, 2019 period:

Interest income increased $4.8 million for the first quarter of 2019, compared to the same period in 2018 primarily due to higher loan volumes and a higher yield on loans. Interest expense increased $2.4 million for the first quarter of 2019, compared to the same period in 2018, primarily due to higher deposit volumes and rates.

The provision for loan losses increased $300,000 for the first quarter of 2019 period compared to the same periods of 2018. The increase in 2019 in the provision is primarily due to loan growth.

For the first quarter of 2019,non-interest income increased $53,000, with the increase primarily attributable to the increased fee income from loan and deposit accounts, partially offset by a decrease in gains on the sale of SBA loans.

Non-interest expense increased $265,000 for the first quarter of 2019 period compared to the same periods of 2018, primarily due to increases in compensation and occupancy costs reflecting the growth of the business.

Income tax expense increased $481,000 for the first quarter of 2019 compared to the same periods of last year. The increase in income tax expense primarily reflected increasedpre-tax income in the quarter. The effective tax rate for the quarter was 24.4% compared to 24.2% for the same period in 2018.

March 31, 2019 discussion of financial condition

• Total assets increased to $1.56 billion at March 31, 2019, from $1.47 billion at December 31, 2018, an increase of $90.8 million or 6.2%.

• Cash and cash equivalents totaled $188.5 million at March 31, 2019 as compared to $154.5 million at December 31, 2018. The $34.0 million increase was primarily due to the increase in deposits.

• The investment securities portfolio decreased to $31.7 million at March 31, 2019, from $32.4 million at December 31, 2018, a decrease of $698,000 or 2.2% primarily due to the payoffs of certain securities.

• Gross loans increased to $1.30 billion at March 31, 2019, from $1.24 billion at December 31, 2018, an increase of $57.1 million or 4.6%.

• Nonperforming loans at March 31, 2019 increased to $3.4 million, representing 0.26% of total loans receivable, an increase of $375,000, or 12.2%, from $3.1 million of nonperforming loans at December 31, 2018. OREO at March 31, 2019 was $5.2 million, an increase of $32,000 compared to $5.1 million at December 31, 2018 primarily due to loans transferred into the category. Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.6% of total assets at March 31, 2019 and at December 31, 2018. Loans past due 30 to 89 days were $4.9 million at March 31, 2019, an increase of $4.6 million from December 31, 2018.

• The allowance for loan losses was $19.8 million at March 31, 2019, as compared to $19.1 million at December 31, 2018. The ratio of the allowance for loan losses to total loans was 1.53% at March 31, 2019, and 1.54% at December 31, 2018. The ratio of allowance for loan losses tonon-performing loans decreased to 575.9% at March 31, 2019, compared to 622.35% at December 31, 2018.

• Total deposits were $1.27 billion at March 31, 2019, up from $1.18 billion at December 31, 2018, an increase of $81.4 million or 6.9% compared to December 31, 2018. The deposit growth was primarily due to the increase in time deposits.

• Total borrowings were $118.1 million at March 31, 2019, unchanged from December 31, 2018.

• Total shareholders’ equity increased to $159.6 million and at March 31, 2019, from $153.6 million at December 31, 2018, an increase of $6.0 million or 3.9%. Total equity increased to $161.1 million at March 31, 2019 from    $155.0 million at December 31, 2018. The increases in equities were primarily due to the retention of earnings.

CEO outlook and commentary

Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp and Parke Bank, provided the following statement:

“The Company has had a great start in 2019. Although there continues to be a substantial amount of market volatility, we have had strong asset growth, deposit growth and loan growth. Our loan portfolio reached $1.3 billion, which was the primary support for our assets growing to over $1.56 billion. Most important is our net income. Our first quarter net income increased 28% from the first quarter of 2018, from $5.5 million in 2018 to $7.1 million in 2019. Our growth in income was supported by our strong growth in loans and our continued tight controls of our expenses. We believe we are well positioned to take advantage of opportunities in the market.”

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 continue to generate strong net earnings; 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 take advantage of opportunities in the improving economy and banking environment; 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 and support our profitability; our ability to prudently expand our operations in our market and in new markets; our ability to tightly control expenses; and our ability to continue to grow our loan portfolio, 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.

Financial Supplement:

Table 1: Condensed Balance Sheet (Unaudited)

Parke Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

	March 31,			December 31,
	2019			2018
	(Dollars in thousands, except share data)
Assets
Cash and cash equivalents	$	188,518		$	154,471
Investment securities		31,693			32,391
Loans held for sale		—			419
Loans, net of unearned income		1,298,697			1,241,157
Less: Allowance for loan and lease losses		(19,810	)		(19,075	)
Net loans and leases		1,278,887			1,222,082
Premises and equipment, net		6,865			6,783
Bank owned life insurance (BOLI)		25,956			25,809
Other assets		26,246			25,443
Total assets	$	1,558,165		$	1,467,398
Liabilities
Noninterest-bearing deposits	$	375,326		$	360,329
Interest-bearing deposits		889,982			823,544
FHLBNY borrowings		104,650			104,650
Subordinated debentures		13,403			13,403
Other liabilities		13,689			10,476
Total liabilities		1,397,050			1,312,402
Total shareholders’ equity		159,562			153,557
Noncontrolling interest in consolidated subsidiaries		1,553			1,439
Total equity		161,115			154,996
Total liabilities and shareholders’ equity	$	1,558,165		$	1,467,398

Table 2: Income Statement (Unaudited)

Parke Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

	For the Three Months Ended March 31,
	2019			2018
	(Dollars in thousands except share data)
Interest income:
Interest and fees on loans	$	17,441		$	13,013
Interest and dividends on investments		315			349
Interests from federal funds sold and deposits with banks		601			146
Total interest income		18,357			13,508
Interest expense:
Interest on deposits		3,963			1,953
Interest on borrowings		962			531
Total interest expense		4,925			2,484
Net interest income		13,432			11,024
Provision for loan and lease losses		700			400
Net interest income after provision for loan losses		12,732			10,624
Noninterest income:
Gain on sale of SBA loans		40			178
Loan fees		191			151
Bank owned life insurance income		147			150
Service fees on deposit accounts		381			286
Other		160			101
Total noninterest income		919			866
Noninterest expense:
Compensation and benefits		2,141			1,954
Professional services		391			374
Occupancy and equipment		471			421
Data processing		218			197
FDIC insurance and other assessments		27			77
OREO expense		75			169
Other operating expense		837			703
Total noninterest expense		4,160			3,895
Income before income tax expense		9,491			7,595
Income tax expense		2,316			1,835
Net income attributable to Company and noncontrolling interest		7,175			5,760
Net (income) loss attributable to noncontrolling interest		(114	)		—
Net income attributable to Company		7,061			5,760
Preferred stock dividend and discount accretion		1			239
Net income available to common shareholders	$	7,060		$	5,521
Earnings per common share:
Basic	$	0.66		$	0.63
Diluted	$	0.65		$	0.53
Weighted average shares outstanding:
Basic		10,744,896			8,822,255
Diluted		10,912,164			10,908,148

Table 3: Operating Ratios

	Three months ended
	March 31,
	2019			2018
Return on average assets		1.98	%		2.03	%
Return on average common equity		18.25	%		18.24	%
Interest rate spread		3.23	%		3.77	%
Net interest margin		3.86	%		4.03	%
Efficiency ratio		28.99	%		32.76	%

Table 4: Asset Quality Data

	March 31,			December 31,
	2019			2018
	(Dollars in thousands except ratio data)
Allowance for loan losses	$	19,810		$	19,075
Allowance for loan losses to total loans		1.53	%		1.54	%
Allowance for loan losses tonon-accrual loans		575.87	%		622.35	%
Non-accrual loans		3,440			3,065
OREO		5,156			5,124