Exhibit 99 

 

 Parke Bancorp, Inc.

601 Delsea Drive,

Washington Township, NJ 08080

 

Contact:

Vito S. Pantilione, President and CEO

John F. Hawkins, Senior Vice President and CFO

(856) 256-2500

 

 

PARKE BANCORP, INC. ANNOUNCES FIRST QUARTER 2020 EARNINGS

 

 

 

Highlights:

 

 

 

 

 

Net Income:

 

$7.2 million,  increased 2.0% over Q1 2019

 

 

 

Total Assets:

 

$1.82 billion,  increased 8.0% over December 31, 2019

 

 

 

Total Loans:

 

$1.47 billion,  increased 3.3% over December 31, 2019

 

 

 

Total Deposits:

 

$1.47 billion,  increased 9.7% over December 31, 2019

 

 

 

 

WASHINGTON TOWNSHIP, NJ, April 21, 2020 - Parke Bancorp, Inc. (“Parke Bancorp”) (NASDAQ: “PKBK”), the parent company of Parke Bank, announced its operating results for the quarter ended March 31, 2020.

 

Highlights for the first quarter March 31, 2020:

 

·

Net income available to common shareholders increased $144,000, or 2.0%, to $7.2 million, or $0.61 per basic common share and $0.60 per diluted common share for the first quarter of 2020, compared to net income available to common shareholders of $7.1 million, or $0.60 per basic common share and $0.59 per diluted common share for the same quarter in 2019.

 

 

·

 Net interest income increased 13.2% to $15.2 million for the first quarter of 2020, compared to $13.4 million for the same quarter of 2019.

 

The following is a recap of the significant items that impacted the first quarter 2020 period:

 

Interest income increased $3.2 million, or 17.4%, for the first quarter of 2020, compared to the same period in 2019,  primarily due to higher loan volumes. In addition, a $350,000 increase in interest income from federal funds sold and deposits with banks also contributed to the increase in interest income for the first quarter of 2020. Interest expense increased $1.4 million for the first quarter of 2020, compared to the same period in 2019, primarily due to higher deposit volumes.

 

The provision for loan losses increased $696,000 to $1.4 million for the first quarter of 2020, compared to the same periods in 2019. The increase in the provision was primarily due to the increasing loan allowance, reflecting the estimated probable increase of credit risk from pandemic on our borrowers as of 3/31/2020, as well as the increased loan volumes.

 

For the first quarter of 2020, non-interest income increased $69,000, compared to the same periods of 2019, with the increase primarily attributable to increased fee income from deposit accounts, partially offset by loss on sale of other real estate owned (OREO).

 

 
 

 

 

 

Non-interest expense increased $709,000 for the first quarter 2020, compared to the same periods of 2019, primarily due to an increase in compensation, data processing cost, and FDIC insurance assessment, partially offset by decrease in professional service fees. The increases in non-interest expenses mainly reflect the growth of the business.

 

Income tax expense increased $238,000 for the first quarter of 2020, compared to the same periods in 2019. The effective tax rates for first quarter 2020 was 25.7%, compared to 24.4% for the same period in 2019.

 

March 31, 2020 discussion of financial condition

 

·

Total assets increased to $1.82 billion at March 31, 2020, from $1.68 billion at December 31, 2019, an increase of $134.4 million or 8.0% primarily due to an increase in cash deposits with the Federal Reserve Bank and an increase in loans.

 

 

·

Cash and cash equivalents totaled $283.2 million at March 31, 2020 as compared to $191.6 million at December 31, 2019.

 

 

·

The investment securities portfolio decreased to $27.2 million at March 31, 2020, from $27.8 million at December 31, 2019, a decrease of $577,000, or 2.1%, primarily due to payoffs of securities.

 

 

·

Gross loans increased to $1.47 billion at March 31, 2020, from $1.42 billion at December 31, 2019, an increase of $47.5 million or 3.3%.

 

 

·

Nonperforming loans at March 31, 2020 increased to $5.9 million, representing 0.40% of total loans, an increase of $567,000, or 10.6%, from $5.3 million of nonperforming loans at December 31, 2019. OREO at March 31, 2020 was $4.0 million, a decrease of $777,000 compared to $4.7 million at December 31, 2019, primarily due to sale of OREO assets. Nonperforming assets (consisting of nonperforming loans and OREO) represented 0.54% and 0.60% of total assets at March 31, 2020 and December 31, 2019, respectively. Loans past due 30 to 89 days were $4.5 million at March 31, 2020, an increase of $2.5 million from December 31, 2019.

 

 

·

The allowance for loan losses was $23.2 million at March 31, 2020, as compared to $21.8 million at December 31, 2019. The ratio of the allowance for loan losses to total loans was 1.58% and 1.54% at March 31, 2020 and at December 31, 2019, respectively. The ratio of allowance for loan losses to non-performing loans was 392.5% at March 31, 2020, compared to 407.8%, at December 31, 2019.

 

 

·

Total deposits were $1.47 billion at March 31, 2020, up from $1.34 billion at December 31, 2019, an increase of $130.1 million or 9.7% compared to December 31, 2019. Deposits growth was primarily due to an increase in non-interest bearing demand deposits and increase in other non-time deposits.

 

 

·

Total borrowings were $148.1 million at March 31, 2020, unchanged from December 31, 2019.

 

 

·

Total equity increased to $184.9 million at March 31, 2020, up from $179.4 million at December 31, 2019, an increase of $5.4 million, or 3.0%, primarily due to the retention of earnings.

 

CEO outlook and commentary

 

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

 

I want to first express my hope that you and your families are safe and healthy in these very challenging times. The COVID-19 crisis has changed the world, the way we live and the way we do business. Although this virus is unprecedented, it is not the first time this country faced a life changing crisis. History has taught us that our country can fight through tough times, return to a normal life with a growing economy and this COVID-19 will be no different. We will get through it.

 

 
 

 

 

 

The Company enjoyed strong growth in the 1st quarter of 2020, growth in total assets, loans and deposits. Our net income increased from the 1st quarter of 2019 to the 1st quarter of 2020, although it was affected by the increase in our loan loss provision due to our concern about the COVID-19 impact o the economy. We made a loan loss provision of $1,400,000 for the first quarter bringing our allowance for loan losses to 1.58%. I’m afraid the economy will get worse before it gets better, but we believe it will get better. The Company is well structured with strong capital to be in a good position to continue growing our Company and Parke bank, including our earnings and shareholders' equity once this crisis is over. Be safe.

 

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; our ability to continue to generate strong net earnings; our ability to continue to reduce our nonperforming loans and delinquencies and the expenses associated with them; our ability to realize a high recovery rate on disposition of troubled assets; our ability to take advantage of opportunities in the improving economy and banking environment; our ability to continue to pay a dividend in the future; our ability to enhance shareholder value in the future; our ability to continue growing our Company, our earnings and shareholders’ equity; our ability to prudently expand our operations in our market and in new markets; our ability to tightly control expenses; and our ability to continue to grow our loan portfolio, 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.

 

 

 
 
 
 

 

Financial Supplement:

 

Table 1: Condensed Consolidated Balance Sheet (Unaudited)

 

Parke Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

 (Amounts in thousands, except share data)

 

Assets

 

 

 

 

Cash and cash equivalents

 

$ 283,191

 

 

$ 191,607

 

Investment securities

 

 

27,203

 

 

 

27,780

 

Loans held for sale

 

 

193

 

 

 

190

 

Loans, net of unearned income

 

 

1,468,204

 

 

 

1,420,749

 

Less: Allowance for loan losses

 

 

(23,219

 

 

(21,811

)

Net loans

 

 

1,444,985

 

 

 

1,398,938

 

Premises and equipment, net

 

 

6,901

 

 

 

6,946

 

Bank owned life insurance (BOLI)

 

 

26,556

 

 

 

26,410

 

Other assets

 

 

26,527

 

 

 

29,289

 

Total assets

 

$ 1,815,556

 

 

$ 1,681,160

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$ 351,892

 

 

$ 259,269

 

Interest-bearing deposits

 

 

1,117,438

 

 

 

1,079,950

 

FHLBNY borrowings

 

 

134,650

 

 

 

134,650

 

Subordinated debentures

 

 

13,403

 

 

 

13,403

 

Other liabilities

 

 

13,303

 

 

 

14,464

 

Total liabilities

 

$ 1,630,686

 

 

$ 1,501,736

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

$ 183,489

 

 

$ 177,605

 

Noncontrolling interest in consolidated subsidiaries

 

 

1,381

 

 

 

1,819

 

Total equity

 

$ 184,870

 

 

$ 179,424

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$ 1,815,556

 

 

$ 1,681,160

 

 

 

 
 

 

 

 

Table 2: Consolidated Income Statement (Unaudited)

 

 

 

For three months ended March 31,

 

 

 

2020

 

 

2019

 

 

 

(Amounts in thousands except share data)

 

Interest income:

 

 

 

 

Interest and fees on loans

 

$ 20,328

 

 

$ 17,441

 

Interest and dividends on investments

 

 

278

 

 

 

315

 

Interest on federal funds sold and deposits with banks

 

 

951

 

 

 

601

 

Total interest income

 

 

21,557

 

 

 

18,357

 

Interest expense:

 

 

 

 

 

Interest on deposits

 

 

5,451

 

 

 

3,963

 

Interest on borrowings

 

 

907

 

 

 

962

 

Total interest expense

 

 

6,358

 

 

 

4,925

 

Net interest income

 

 

15,199

 

 

 

13,432

 

Provision for loan losses

 

 

1,396

 

 

 

700

 

Net interest income after provision for loan losses

 

 

13,803

 

 

 

12,732

 

Non-interest income

 

 

 

 

 

Gain on sale of SBA loans

 

 

 

 

 

40

 

Other loan fees

 

 

241

 

 

 

191

 

Bank owned life insurance income

 

 

146

 

 

 

147

 

Service fees on deposit accounts

 

 

568

 

 

 

381

 

Net loss on sale and valuation adjustments of OREO

 

 

(132

)

 

 

 

Other

 

 

165

 

 

 

160

 

Total non-interest income

 

 

988

 

 

 

919

 

Non-interest expense

 

 

 

 

 

Compensation and benefits

 

 

2,545

 

 

 

2,141

 

Professional services

 

 

355

 

 

 

391

 

Occupancy and equipment

 

 

480

 

 

 

471

 

Data processing

 

 

317

 

 

 

218

 

FDIC insurance and other assessments

 

 

141

 

 

 

27

 

OREO expense

 

 

111

 

 

 

75

 

Other operating expense

 

 

920

 

 

 

837

 

Total non-interest expense

 

 

4,869

 

 

 

4,160

 

Income before income tax expense

 

 

9,922

 

 

 

9,491

 

Income tax expense

 

 

2,554

 

 

 

2,316

 

Net income attributable to Company and noncontrolling interest

 

 

7,368

 

 

 

7,175

 

Less: Net income attributable to noncontrolling interest

 

 

(156

)

 

 

(114

)

Net income attributable to Company

 

 

7,212

 

 

 

7,061

 

Less: Preferred stock dividend

 

 

(8

)

 

 

(1

)

Net income available to common shareholders

 

$ 7,204

 

 

$ 7,060

 

Earnings per common share

 

 

 

 

 

Basic

 

$ 0.61

 

 

$ 0.60

 

Diluted

 

$ 0.60

 

 

$ 0.59

 

Weighted average common shares outstanding

 

 

 

 

 

Basic

 

 

11,848,964

 

 

 

11,819,386

 

Diluted

 

 

12,008,200

 

 

 

12,003,380

 

 

 

 
 

 

 

 

Table 3: Operating Ratios

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

Return on average assets

 

 

1.62 %

 

 

1.99 %

Return on average common equity

 

 

15.92 %

 

 

18.25 %

Interest rate spread

 

 

2.99 %

 

 

3.23 %

Net interest margin

 

 

3.43 %

 

 

3.86 %

Efficiency ratio

 

 

30.08 %

 

 

28.99 %
 

* Return on the average assets is calculated using net income attributable to Company and noncontrolling interest dividing average assets

 

Table 4: Asset Quality Data

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Amounts in thousands except ratio data)

 

Allowance for loan losses

 

$ 23,219

 

 

$ 21,811

 

Allowance for loan losses to total loans

 

 

1.58

%

 

 

1.54

%

Allowance for loan losses to non-accrual loans

 

 

392.54

%

 

 

407.83

%

Non-accrual loans

 

$ 5,915

 

 

$ 5,348

 

OREO

 

$ 3,950

 

 

$ 4,727

 

 

 

View differences made from one to another to evaluate Parke Bancorp, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Parke Bancorp, Inc..

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Log in with your credentials

or    

Forgot your details?

Create Account