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Overview of Parke Bancorp, Inc.

Parke Bancorp, Inc., the parent company of Parke Bank, has announced its financial performance for the fourth quarter and the entire fiscal year ended December 31, 2025. The results reflect a solid growth trajectory despite an economically challenging landscape, marked by fluctuations in interest rates and geopolitical tensions.

Key Financial Highlights

For Q4 2025, Parke Bancorp reported a net income of $11.1 million, achieving a 4.3% increase over Q3 2025. This translates to $0.94 per basic share, up from $0.62 during the same quarter in the previous year. The total revenue for the quarter reached $38.2 million, a 2.3% increase compared to Q3 2025.

In total, the company recorded a net income of $37.8 million for the fiscal year, equivalent to $3.20 per basic share. This marked a significant 37.3% increase over the prior year's earnings of $27.5 million. The growth in net interest income, which surged by 30.2% to $76.5 million, was a key driver in this financial success.

Asset Growth and Quality

Parke Bancorp's total assets rose to $2.25 billion, reflecting a 5.0% increase from the previous year. The company saw substantial growth in its loan portfolio, totaling $2.04 billion, which is an 8.9% increase compared to $1.87 billion in 2024. This increase was primarily attributed to growth in commercial real estate (CRE) loans and construction loans.

Despite the overall growth, the bank experienced a fall in nonperforming loans to $10.8 million, or 0.53% of total loans, a decrease that underscores the quality of the asset portfolio.

Detailed Performance Metrics

The net interest income for the fourth quarter rose sharply to $21.8 million, compared to $15.6 million in the previous year's Q4. This increase stems from a higher volume of loans coupled with rising interest rates. However, non-interest income took a slight hit, decreasing to $0.9 million, attributed mainly to lower other income and service fees collected.

Total deposits increased to $1.76 billion, representing a 7.8% growth year-over-year, bolstered by a shift towards money market and interest checking deposits. This was contrasted by a decrease in brokered deposits, reflecting strategic adjustments in the bank's liability management.

Expenses and Efficiency

Non-interest expenses during this quarter were $7.6 million, a slight uptick from the previous year's $6.9 million. The increase was driven primarily by higher operational costs and professional services. However, the efficiency ratio improved, indicating better operational control and cost management, now standing at 35.03%.

Outlook and Challenges

Vito S. Pantilione, CEO of Parke Bancorp, expressed optimism about the company's future as it navigates through varying interest rates and economic uncertainties. With a structured balance sheet poised to adapt to such changes, the bank remains committed to monitoring market conditions closely to capitalize on emerging opportunities.

In terms of challenges, Pantilione acknowledged the unpredictable economic environment, particularly concerning interest rate policies and global geopolitical dynamics. Nevertheless, he highlighted the bank's robust foundation and readiness to meet these challenges head-on.

Conclusion

Parke Bancorp's fourth-quarter results reflect its resilience amid a shifting economic landscape. The significant increases in net income, total assets, and loans underscore the bank's strategic direction and operational efficiency. As the company heads into 2026, it remains focused on maintaining strong asset quality and responding effectively to future market fluctuations. Investors and stakeholders can take heart in the company’s recent performance and its strategic adaptability moving forward.