FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
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July 18, 2006 Vito S. Pantilione, President and CEO
Ernest D. Huggard, Senior Vice President, CFO
(856) 256-2500
PARKE BANCORP, INC. REPORTS INCOME INCREASE OF 34% FOR THE FIRST SIX MONTHS
Washington Township, New Jersey -- July 18, 2006 - Parke Bancorp, Inc.
(Nasdaq: "PKBK"), Washington Township, New Jersey, today announced net earnings
for the six months ended June 30, 2006 of $2,196,673, or $0.65 diluted income
per share, compared to net income of $1,636,031, or $0.52 diluted income per
share, a 34.3% increase over the same period last year.
Total assets grew by $38,074,013, or 12.8%, to $335,884,457 at June 30,
2006, compared to $297,810,444 at December 31, 2005. This increase was primarily
due to strong loan growth of $35,241,280, or 13.6%, resulting in total loans of
$294,276,368 at June 30, 2006, as compared to total loans of $259,035,088 at
December 31, 2005. Investment securities increased $651,431, or 2.7%, from
$24,428,785 at December 31, 2005, to $25,080,216 at June 30, 2006. The allowance
for loan losses increased by 15.7%, or $560,500, to $4,134,312, or 1.4%, of
total loans at June 30, 2006.
Deposits increased by a robust $37,811,405, or 16.3%, to $269,867,713 at
June 30, 2006, from $232,056,308 at December 31, 2005. Borrowings decreased by
$2,202,826, or 6.1%, to $33,764,024 at June 30, 2006 from $35,966,860 at
December 31, 2005.
Net income of $1,121,211, or $0.33 fully diluted earnings per share, for
the quarter ended June 30, 2006, compared to net earnings of $904,014, or $0.29
fully diluted earnings per share, for the quarter ended June 30, 2005. The
$217,197, or 24.0%, increase in net earnings is attributable primarily to
increases in net interest income of $740,950, or 28.6%, to $3,332,527 for the
quarter ended June 30, 2006, as compared to net interest income of $2,591,577
for the quarter ended June 30, 2005.
Interest income increased $2,051,646, or 50.0%, to $6,158,455 for the
quarter ended June 30, 2006, as compared to interest income of $4,106,809 for
the same quarter in 2005. Interest expense also increased from $1,515,232 for
the quarter June 30, 2005 to $2,825,928 for the quarter ended June 30, 2006,
which represents an increase of 86.5%, or $1,310,696. The continued deposit
growth and rising interest rates attributed to the increase in interest expense.
Non-interest expense increased 15.5%, or $175,441, to $1,309,951 for the
quarter ended June 30, 2006, from $1,134,510 for the quarter ended June 30,
2005. The increase is primarily attributable to the additional employees added
to provide enhanced customer service necessary due to our growth.
According to our President and CEO, Vito Pantilione, "Parke Bancorp's
continued strong growth and profitability is reflective of our commitment to
better banking. Competitive interest rates offered on our diversified deposit
products combined with our responsive
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approach to lending supports our goal to put the "personal touch" back into
banking. The sustained growth of our bank provided the foundation for issuing a
20% stock dividend this quarter, further enhancing shareholder value".
Parke Bancorp, Inc. was incorporated in January 2005. It commenced
operations on June 1, 2005 with the acquisition of Parke Bank. Comparisons to
2005 interim period financial data relate to the financial condition and results
of operations of Parke Bank. Parke Bancorp maintains its principal office at 601
Delsea Drive, Washington Township, New Jersey. It conducts its bank business
through branch offices located in Northfield, New Jersey, two branch offices
located in Washington Township, New Jersey and its newest branch in Philadelphia
on 1610 Spruce Street, which will be open by August 1st. Parke Bank is a full
service commercial bank, with an emphasis on providing personal and business
financial services to individuals and small to mid-sized businesses primarily in
Gloucester, Atlantic and Cape May Counties in New Jersey and the Philadelphia
area in Pennsylvania. Parke Bank's deposits are insured up to the maximum legal
amount by the Federal Deposit Insurance Corporation (FDIC). Parke Bancorp's
common stock is traded on the Nasdaq Stock Market under the symbol "PKBK."
SELECTED FINANCIAL CONDITION DATA
JUNE 30, DECEMBER 31, CHANGE
2006 2005 %
-------- ------------ ------
(in thousands) (in thousands)
Total assets $335,884 $297,810 12.8%
Cash and cash equivalents $6,649 $4,380 51.8%
Investment securities $25,080 $24,429 2.7%
Loans receivable, net $290,142 $255,461 13.6%
Deposits $269,868 $232,056 16.3%
Other borrowings $33,764 $35,967 (6.1)%
Stockholders' equity $29,260 $27,193 7.6%
SELECTED FINANCIAL RATIOS
THREE MONTHS ENDED JUNE JUNE
2006 2005
---- -----
Return on average assets 1.4% 1.3%
Return on average equity 15.4% 12.5%
Interest rate spread 3.8% 4.0%
Net interest rate margin 4.3% 4.4%
Efficiency ratio 44.2% 43.9%
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SELECTED OPERATIONS DATA
THREE MONTHS ENDED JUNE 30, JUNE 30, CHANGE
2006 2005 %
------- -------- ------
(in thousands) (in thousands)
Interest and dividend income $6,158 $4,107 50.0%
Interest expense $2,826 $1,515 86.5%
Net interest income $3,332 $2,592 28.6%
Provision for loan losses $328 $276 18.8%
Net interest income after
provision for loan losses $3,004 $2,316 29.8%
Non-interest income $167 $319 (47.7)%
Non-interest expense $1,310 $1,135 15.5%
Income before income taxes $1,861 $1,500 24.1%
Provision for income taxes $740 $596 24.3%
Net income $1,121 $904 24.0%
Basic income per share $.40 $.34 17.6%
Diluted income per share $.33 $.29 17.2%
Weighted shares - basic 2,830,232 2,696,257
Weighted shares - diluted 3,352,122 3,135,802
ASSET QUALITY DATA
JUNE 30, DECEMBER 31,
2006 2005
------------ -------------
(in thousands) (in thousands)
Allowance for loan losses $4,134 $3,574
Percentage of allowance for
loan losses of total loans 1.4% 1.4%
Non-accrual loans $2,236 $1,935
Real estate owned None None
This release may contain forward-looking statements. We caution that
such statements may be subject to a number of uncertainties and actual results
could differ materially and, therefore, readers should not place undue reliance
on any forward-looking statements. Parke Bancorp, Inc. does not undertake, and
specifically disclaims, any obligation 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 statements.
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