Parke Bancorp Reports 2.1% Asset Growth, 10.3% Interest Income Increase in Q3 2024

As of September 30, 2024, Parke Bancorp, Inc. reported total assets of $2,065,409 thousand, reflecting a 2.1% increase from $2,023,500 thousand at the end of 2023. The company experienced a decrease in cash and cash equivalents, which fell from $180,376 thousand to $172,449 thousand, a decline of 4.4%. However, net loans increased by 2.9%, rising from $1,755,209 thousand to $1,807,611 thousand, driven by growth in construction, multifamily, and commercial real estate loans. Total deposits also saw a slight increase, from $1,552,827 thousand to $1,558,883 thousand.

Interest income for the third quarter of 2024 was $32,122 thousand, up 10.3% from $29,114 thousand in the same period of 2023, primarily due to a $2,867 thousand increase in interest and fees on loans. However, net interest income decreased by 6.1% to $14,723 thousand, down from $15,683 thousand, attributed to a significant rise in total interest expense, which increased by 29.5% to $17,399 thousand. This rise in interest expense was largely due to higher market interest rates on deposits.

The company reported a substantial increase in income before income tax expense, which rose to $9,400 thousand from $1,369 thousand in the prior year. Net income attributable to the company for the third quarter was $7,508 thousand, a significant increase from $1,029 thousand in 2023, resulting in basic earnings per share of $0.63 compared to $0.09 in the previous year.

For the nine months ended September 30, 2024, net income attributable to the company was $20,114 thousand, slightly down from $20,289 thousand in 2023. Basic earnings per share for this period were $1.68, compared to $1.70 in the prior year. The company’s total equity increased to $296,460 thousand, up from $284,317 thousand at the end of 2023, reflecting a 4.3% growth.

In terms of strategic developments, Parke Bancorp has focused on expanding its lending to small and mid-sized businesses and individual consumers, particularly in Southern New Jersey and Philadelphia, with increased efforts in New York and South Carolina. The company also reported an increase in cannabis-related deposits and loans, with deposits rising to $116.5 million and loans to $38.7 million as of September 30, 2024.

Overall, Parke Bancorp's financial performance for the third quarter of 2024 indicates a strong recovery in net income, despite challenges in net interest income and rising expenses.