FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
January 22, 2007 Vito S. Pantilione, President and CEO
Robert A. Kuehl, Senior Vice President, CFO
(856) 256-2500
PARKE BANCORP, INC. ANNOUNCES RECORD EARNINGS
Washington Township, New Jersey--January 22, 2007- Parke Bancorp, Inc.
(Nasdaq: "PKBK"), announced today record earnings of $1.2 million for the fourth
quarter of 2006 and $4.6 million for the full year ended December 31, 2006,
which represented increases of $241 thousand (24.9%) and $1.1 million (32.3%),
respectively from the comparable periods of 2005. The 2006 results equated to
earnings per share on a fully diluted basis of $0.37 and $1.40 for the fourth
quarter and full year, respectively, as compared to earnings per share of $0.30
and $1.10 for comparable periods of 2005. Return on average assets and return on
average equity amounted to 1.41% and 15.68%, respectively, for the full year
ended December 31, 2006.
Total assets of $359.7 million at December 31, 2006, increased $61.8
million, or 20.8%, from $297.8 million at December 31, 2005. The increase was
driven primarily by continued strong loan growth as total loans amounted to
$310.6 million at December 31, 2006, as compared to total loans of $259.0
million at December 31, 2005, reflecting loan growth of $51.5 million, or 19.9%.
Investment securities grew by $4.0 million, or 16.5%, from $24.4 million at
December 31, 2005, to $28.5 million at December 31, 2006. The allowance for loan
losses was $4.5 million and amounted to 1.45% of total loans at December 31,
2006.
Total deposits of $289.9 million at December 31, 2006, increased $57.9
million, or 24.9%, from $232.1 million at December 31, 2005. Borrowings amounted
to $34.9 million at December 31, 2006, and declined slightly from the level at
December 31, 2005. Total capital at December 31, 2006, of $30.7 million, which
was reduced by $563 thousand due to the December 2006 special cash dividend
payment, reflected an increase of $3.5 million, or 12.9%, as compared to $27.2
million at December 31, 2005.
Net interest income of $13.5 million for the year ended December 31,
2006, was $2.8 million, or 26.3%, above the prior years' level primarily due to
the increased growth in the commercial loan portfolio. Interest income, which
amounted to $25.5 million, increased by $8.1 million, or 47.0%, due to an
increase in average interest-earning assets of $71.5 million year-over-year
coupled with an increase in the level of market interest rates during 2006.
Interest expense amounted to $12.0 million and increased $5.3 million, or
79.9%, resulting from increased average interest-bearing liabilities of $64.0
million year-over-year coupled with an increase in the interest rates paid for
both deposits and borrowed funds and a greater concentration of higher cost time
deposits within the retail deposit base. The net interest margin of 4.25% for
the full year 2006 declined by 9 basis points
from the level of 4.34% in 2005 due primarily to a greater reliance on higher
cost time deposits to fund the loan growth in 2006.
Noninterest expense amounted to $5.8 million for the full year 2006,
which represented an increase of $1.3 million, or 28.2%, above the level of
2005. This increase was mainly attributable to the additional staffing costs and
associated expenses for the new retail branch facility in Philadelphia and the
new loan production office in Millville, New Jersey.
Vito S.Pantilione, President and Chief Executive Officer stated, "I am
extremely pleased with the Company's record earnings for 2006 and in particular
the significant growth in earnings above last year. We were able to accomplish
this despite the ongoing margin compression experienced by the banking industry
and the softening of the real estate market. In addition to our continued strong
loan growth and emphasis on expense management, we established a retail banking
presence this past summer within the attractive Philadelphia market, opened a
new loan production office in Millville, New Jersey and paid out our first cash
dividend in December."
Parke Bancorp, Inc. was incorporated in January 2005 while Parke Bank
commenced operations in January 1999. Parke Bancorp maintains its principal
office at 601 Delsea Drive, Washington Township, New Jersey. It conducts its
business through branch locations in Northfield, New Jersey, two branch offices
in Washington Township, New Jersey and its newest branch facility in
Philadelphia on 1610 Spruce Street. In addition, Parke Bank opened a new loan
production office in Millville, New Jersey in 2006. 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 Capital Market under the symbol "PKBK."
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.
SELECTED FINANCIAL CONDITION DATA
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December 31, December 31, Change
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2006 2005 %
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(in thousands) (in thousands)
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Total assets $359,659 $297,810 20.8%
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Cash and cash equivalents $11,261 $4,380 157%
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Investment securities $28,454 $24,429 16.5%
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Loans receivable, net $306,044 $255,461 19.8%
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Deposits $289,929 $232,056 24.9%
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Other borrowings $34,851 $35,967 (3.1%)
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Stockholders' equity $30,709 $27,193 12.9%
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SELECTED FINANCIAL RATIOS
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4th Quarter 4th Quarter Full Year Full Year
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2006 2005 2006 2005
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Return on average assets 1.36% 1.35% 1.41% 1.35%
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Return on average equity 15.63% 14.39% 15.68% 13.91%
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Interest rate spread 3.79% 3.90% 3.99% 3.94%
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Net interest rate margin 4.04% 4.37% 4.25% 4.34%
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Efficiency ratio 45.2% 37.4% 40.7% 39.3%
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SELECTED OPERATIONS DATA
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4th Quarter 4th Quarter Full Year Full Year
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$ in thousands 2006 2005 2006 2005
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Interest and dividend income $6,995 $5,098 $25,475 $17,336
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Interest expense 3,542 2,093 12,023 6,684
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Net interest income 3,453 3,006 13,453 10,652
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Provision for loan losses 166 374 940 1,180
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Net interest income after
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provision for loan losses 3,287 2,632 12,513 9,472
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Non-interest income 244 187 857 896
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Non-interest expense 1,672 1,194 5,827 4,544
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Income before income taxes 1,860 1,625 7,543 5,824
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Provision for income taxes 649 656 2,919 2,330
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Net income $1,210 $969 $4,624 $3,494
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Basic income per share $0.43 $0.35 $1.64 $1.30
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Diluted income per share $0.37 $0.30 $1.40 $1.10
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Weighted shares - basic 2,810,099 2,742,695 2,813,464 2,697,514
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Weighted shares - diluted 3,254,647 3,220,508 3,304,612 3,173,107
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ASSET QUALITY DATA
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December 31, December 31,
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2006 2005
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(in thousands) (in thousands)
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Allowance for loan losses $4,511 $3,574
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Percentage of allowance for
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loan losses of total loans 1.45% 1.38%
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Non-accrual loans $788 $1,935
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Repossessed assets $1,710 $485
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