Parke Bancorp, Inc. reported net income of $12.2 million for the second quarter of 2026, a 47.8% increase compared to the same period in 2025. Earnings per share (EPS) rose to $1.03, a 49.28% increase from $0.69 in the prior year. The company reported sales of $23.886 million for the quarter, a 27.82% increase from $18.687 million in the same period last year. The growth was attributed to a $5.1 million increase in net interest income and a $0.3 million decrease in the provision for credit losses, partially offset by a $0.2 million increase in non-interest expense. For the six months ended June 30, 2026, net income available to common shareholders increased 50% to $24.1 million.

Financial Performance

Net interest income increased 28.8% to $23.0 million for the three months ended June 30, 2026, compared to $17.9 million in the prior year. The rise was primarily due to a $4.2 million increase in interest and fees on loans, resulting from higher market interest rates and average loan portfolio balances. Interest expense decreased 10% to $15.4 million for the quarter, driven by lower market interest rates and changes in deposit and borrowing mixes.

The provision for credit losses was $0.7 million for the second quarter of 2026, down from $1.0 million in the same period of 2025. Non-interest income increased 7.5% to $0.88 million, led by higher bank owned life insurance income. Non-interest expense rose 3.6% to $6.9 million, primarily due to increased compensation and benefits.

Balance Sheet and Asset Quality

Total assets increased to $2.30 billion at June 30, 2026, from $2.25 billion at December 31, 2025. Cash and cash equivalents totaled $204.7 million, an increase from $156.9 million at year-end 2025. Gross loans decreased slightly to $2.03 billion. Nonperforming loans decreased to $5.4 million, or 0.27% of total loans, down from $10.8 million at December 31, 2025. The allowance for credit losses remained at $34.6 million, with the allowance to total loans ratio steady at 1.70%.

Total deposits were $1.76 billion, a marginal increase from December 31, 2025. Total borrowings increased to $177.4 million, driven by a $34.0 million rise in Federal Home Loan Bank of New York (FHLBNY) borrowings. Total shareholders' equity increased to $346.9 million, up 6.6% from December 31, 2025.

Key Metrics

Management Commentary

Vito S. Pantilione, President and Chief Executive Officer of Parke Bancorp, Inc. and Parke Bank, highlighted the company's performance amid economic volatility. He noted that net income increased to $24.1 million for the six months ended June 30, 2026, representing a 50% increase compared to the same period in 2025. Pantilione stated that the earnings growth was driven by the strength of the loan portfolio, higher asset yields, and lower funding costs. He also pointed to improvements in profitability metrics, including a net interest margin of 4.17% and an efficiency ratio of 30.16% for the first six months of 2026.

Parke Bancorp announced a $0.20 per share cash dividend payable on July 17, 2026, to stockholders of record as of the close of business on July 3, 2026. The declaration underscores the company's commitment to returning value to shareholders, pending ongoing financial assessments and regulatory compliance.

The Board anticipates paying cash dividends on a quarterly basis. Future payments remain subject to determination and declaration by the Board of Directors, which will evaluate factors including the financial condition of Parke Bancorp and Parke Bank, as well as any applicable legal and regulatory restrictions. The company noted that dividends may be reduced or eliminated in future periods depending on these considerations.

Parke Bancorp was incorporated in January 2005, while its subsidiary, Parke Bank, commenced operations in January 1999. Both entities maintain their principal offices at 601 Delsea Drive, Washington Township, New Jersey. Parke Bank operates as a full-service commercial bank with a focus on personal and business financial services for individuals and small-sized businesses primarily in Gloucester, Atlantic, and Cape May counties in New Jersey, and Philadelphia and surrounding counties in Pennsylvania.

Dividend Details

Parke Bank conducts business through a network of branch offices located in Northfield, Washington Township, Galloway Township, and Collingswood in New Jersey, as well as two branches in Philadelphia, including one in Chinatown. Deposits at Parke Bank 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".