PKBK · Parke Bancorp, Inc.

Parke Bancorp delivered robust Q1 2026 results with net income available to common shareholders surging 52.3% year-over-year to $11.8 million, or $0.99 diluted EPS, from $7.8 million and $0.65 in Q1 2025. This performance was propelled by a 33.3% increase in net interest income to $22.1 million, driven by $4.4 million higher interest and fees on loans (up 14.0% to $35.9 million) from elevated rates and loan balances, alongside a $2.4 million or 14.1% drop in interest expense to $14.8 million, mainly from lower deposit costs amid declining market rates. Interest income on FRB deposits fell sharply due to lower balances and rates, but overall dynamics favored profitability. Provision for credit losses improved to $0.2 million from $0.6 million, reflecting moderated loan growth. Non-interest income edged up 3.9% to $0.85 million on higher BOLI income, while non-interest expense rose 10.4% to $7.2 million from increased compensation ($0.4 million) and other operating costs ($0.4 million). Efficiency ratio improved to 31.39% from 37.51% YoY, ROAA to 2.19% from 1.48%, ROAE to 14.47% from 10.36%, and NIM to 4.17% from 3.21%. Balance sheet showed total assets at $2.21 billion (down 1.6% QoQ), with gross loans up 0.4% to $2.04 billion, deposits down 3.4% to $1.70 billion (non-interest bearing -16.5%), and borrowings up to $153.4 million. Asset quality strengthened with nonperforming loans dropping 14.9% to $9.2 million (0.45% of loans), allowance coverage at 380.4%, and nonperforming assets at 0.54% of assets. CEO Vito S. Pantilione highlighted resilience amid economic headwinds like inflation and geopolitical tensions, crediting loan growth, expense control, and positioning with strong capital and liquidity, though no specific forward guidance was provided beyond forward-looking statements on maintaining strength.