SYS-CON MEDIA Authors: Xenia von Wedel, Peter Silva, Glenn Rossman, Ava Smith, Elizabeth White

News Feed Item

Parke Bancorp, Inc. Announces Record Earnings for 2013

WASHINGTON TOWNSHIP, N.J., Jan. 24, 2014 /PRNewswire/ -- Parke Bancorp, Inc. ("Parke Bancorp") (NASDAQ: PKBK), the parent company of Parke Bank, announced its operating results for the quarter and year ended December 31, 2013.

Parke Bancorp reported net income available to common shareholders of $8.46 million or $1.42 per diluted common share for the year ended December 31, 2013, compared to $6.30 million, or $1.06 per diluted common share, for the year ended December 31, 2012, an increase of 34.3%.

For the quarter ended December 31, 2013 net income available to common shareholders was $3.08 million, or $0.51 per diluted common share, compared to net income of $1.70 million, or $0.29 per diluted common share for the quarter ended December 31, 2012, an increase of 81.0%.

During the quarter ended December 31, 2013, Parke Bancorp completed a private placement of newly designated 6.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series B, with a liquidation preference of $1,000 per share.  The Company sold 20,000 shares in the placement for gross proceeds of $20.0 million. Proceeds after expenses were $18.54 million. Parke Bancorp utilized a portion of the proceeds to repurchase and retire 16,288 shares of outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the "Series A Preferred Stock" that was originally issued to the U.S. Treasury under TARP and was subsequently sold by the U.S. Treasury to private investors. The Company was able to repurchase these shares for an aggregate price of $14.34 million, a substantial discount of $1.95 million and also avoided the January 2014 dividend reset to 9%.

Also during the current quarter Parke Bancorp was required to write-off $1.0 million related to three TruPS collateralized debt investment securities, due to the recently enacted Volcker Rule. Financial institutions are no longer permitted to hold these securities in portfolio and Parke Bancorp must dispose of them by July 2015. The three securities, which are comprised of insurance company-issued equities, were written down to fair value at December 31, 2013.

The following is a recap of other significant items that impacted the fourth quarter of 2013 compared to the same quarter last year: a $718,000 increase in net interest income primarily attributable to higher loan volumes and lower deposit volumes; a $1.53 million decrease in the gain on the sale of SBA loans; a $1.00 million decrease in the provision for loan losses; and a $1.25 million increase in OREO expense.

At December 31, 2013, Parke Bancorp's total assets increased to $794.94 million from $770.48 million at December 31, 2012, an increase of $24.46 million, or 3.2%, due to an increase in loans and investment securities, partially offset by a decrease in cash and cash equivalents.

Parke Bancorp's total loans increased to $654.54 million at December 31, 2013 from $629.71 million at December 31, 2012, an increase of $24.83 million or 3.9%.

At December 31, 2013, Parke Bancorp had $35.95 million in nonperforming loans representing 5.5% of total loans, a decrease from $47.55 million at December 31, 2012. OREO at December 31, 2013 was $28.91 million, compared to $26.06 million at December 31, 2012. The increase is a result of non-performing loans being migrated to OREO through the legal process. OREO consisted of 28 properties, the largest being a condominium development recorded at $10.62 million. Nonperforming assets (consisting of nonperforming loans and OREO) represented 8.2% of total assets at December 31, 2013 as compared to 9.6% of total assets at December 31, 2012. Loans past due 30 to 89 days were $3.67 million at December 31, 2013, an increase of $849,000 from the previous quarter.

At December 31, 2013, Parke Bancorp's allowance for loan losses was $18.56 million. The ratio of allowance for loan losses to total loans was 2.8% at December 31, 2013 compared to 3.0% at December 31, 2012. The ratio of allowance for loan losses to non-performing loans improved to 51.6% at December 31, 2013, compared to 39.8% at December 31, 2012.

Parke Bancorp's total investment securities portfolio increased to $37.80 million at December 31, 2013 from $21.41 million at December 31, 2012, an increase of $16.39 million or 76.6%. The increase was due to a purchase of mortgage-backed securities for future liquidity purposes.

At December 31, 2013, Parke Bancorp's total deposits were $626.77 million, down from $637.21 million at December 31, 2012, a decrease of $10.44 million or 1.6%.

Parke Bancorp's total borrowings increased to $68.68 million at December 31, 2013 from $43.85 million at December 31, 2012, an increase of $24.83 million or 56.6%. The increased borrowings were used to fund the above mentioned investment security purchase.

Total shareholders' equity increased to $93.72 million at December 31, 2013 from $83.64 million at December 31, 2012, an increase of $10.08 million or 12.1%, due to the retention of earnings and the preferred stock transaction.

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

"It is always great to report record earnings. This was accomplished in a relatively flat economy and in spite of a very recent decision on January 15, 2014, by the government to disallow certain TruPS from a bank's balance sheet. We are seeing increased activity in our loan originations, which has helped support the growth of our interest income. Our biggest challenge continues to be the reduction of our non-performing loans. We have made considerable progress in reducing our NPAs and we anticipate further progress in the coming months. We have carefully avoided selling troubled assets at deep discounts, choosing instead to work these loans out and recovering approximately 80 cents on a dollar, preserving a substantial portion of our shareholders' investment. We are also proud that we successfully completed our $20 million capital raise, enabling us to retire our TARP securities and further support our capital position. Our increased earnings, combined with the reduction in NPAs continue to support shareholder value."

Parke Bancorp, Inc. was incorporated in January 2005, while Parke Bank commenced operations in January 1999. Parke Bancorp and Parke Bank maintain their principal offices at 601 Delsea Drive, Washington Township, New Jersey. Parke Bank conducts business through a branch office in Northfield, New Jersey, two branch offices in Washington Township, New Jersey, a branch office in Galloway Township, New Jersey and a branch in center city Philadelphia. Parke Bank is a full service commercial bank, with an emphasis on providing personal and business financial services to individuals and small-sized businesses primarily in Gloucester, Atlantic and Cape May counties in New Jersey and Philadelphia and surrounding counties 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. 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 including but not limited to our ability to further reduce our NPAs or to originate new loans and, 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.

 

Statements of Condition Data


December 31

2013

December 31,
2012

% Change


(in thousands)


Total Assets

$

794,943

$

770,477

3.2%

Cash and cash equivalents

45,661

76,866

-40.6%

Investment securities

37,798

21,406

76.6%

Loans, net of unearned income

654,541

629,712

3.9%

Deposits

626,798

637,207

-1.6%

Borrowings

68,683

43,851

56.6%

Total shareholders' equity

93,716

83,637

12.1%







 

Operating Ratios


Three Months Ended

December 31,

Twelve Months Ended
December 31,


2013

2012

2013

2012

Return on average assets

0.74%

1.01%

1.01%

0.94%

Return on average common equity

17.05%

10.11%

12.04%

9.70%

Interest rate spread

4.43%

3.94%

4.26%

4.00%

Net interest margin

4.53%

4.04%

4.36%

4.12%

Efficiency ratio

67.35%

44.58%

54.78%

43.12%

 

Asset Quality Data


December 31,

 2013

December 31,
2012


(in thousands)

Allowance for loan losses

$

18,560

$

18,936

Allowance for loan losses to total loans


2.84%


3.01%

Non-accrual loans

$

35,954

$

47,549

OREO

$

28,910

$

26,057

 

Statements of Income Data


Three Months Ended
December 31,

Twelve Months Ended
December 31,


2013

2012

2013

2012


(in thousands)

Interest and dividend income

$

9,510

$

9,130

$

36,784

$

37,746

Interest expense

1,366

1,704

5,795

7,424

Net interest income

8,144

7,426

30,989

30,322

Provision for loan losses

500

1,500

2,700

7,300

Net interest income after provision for loan losses

7,644

5,926

28,289

23,022

Non-interest income

7

1,809

3,426

4,368

Non-interest expense

5,490

4,117

18,852

15,079

Income before income taxes

2,161

3,618

12,863

12,311

Provision for income taxes

837

1,348

5,024

4,242

Net income attributable to Company and noncontrolling (minority) interests

1,324

2,270

7,839

8,069

Net income attributable to noncontrolling (minority) interests

90

(315)

(268)

(756)

Net income attributable to Company

1,414

1,955

7,571

7,313

Discount on retirement of preferred stock

1,948

1,948

Preferred stock dividend and discount

(284)

(254)

(1,058)

(1,012)

Net income available to common shareholders

3,078

1,701

8,461

6,301






Basic income per common share

0.51

0.29

1.42

1.06

Diluted income per common share

0.51

0.29

1.42

1.06






Weighted shares - basic

5,982,810

5,925,219

5,964,018

5,920,884

Weighted shares - diluted

5,990,194

5,925,219

5,965,663

5,920,884










 

 

SOURCE Parke Bancorp, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
Software-driven innovation is becoming a primary approach to how businesses create and deliver new value to customers. A survey of 400 business and IT executives by the IBM Institute for Business Value showed businesses that are more effective at software delivery are also more profitable than their peers nearly 70 percent of the time (1). DevOps provides a way for businesses to remain competitive, applying lean and agile principles to software development to speed the delivery of software that ...
Docker offers a new, lightweight approach to application portability. Applications are shipped using a common container format and managed with a high-level API. Their processes run within isolated namespaces that abstract the operating environment independently of the distribution, versions, network setup, and other details of this environment. This "containerization" has often been nicknamed "the new virtualization." But containers are more than lightweight virtual machines. Beyond their small...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...