PARKE BANCORP, INC. ANNOUNCES CASH DIVIDEND

Rhea-AI Summary

Parke Bancorp, Inc. (PKBK) declares a $0.18 per share cash dividend, payable on January 17, 2024, to stockholders of record as of January 3, 2024. The Board anticipates paying quarterly cash dividends, subject to financial conditions, legal and regulatory restrictions. Parke Bank is a full-service commercial bank operating in New Jersey and Pennsylvania, with insured deposits by the FDIC.

Insights

Financial Analyst

The announcement by Parke Bancorp, Inc. regarding a $0.18 per share cash dividend is a critical piece of information for shareholders and potential investors. Dividend declarations are a direct indicator of a company's profitability and financial health, often reflecting its confidence in maintaining or growing earnings. The commitment to quarterly dividends signals a stable cash flow and a shareholder-friendly policy, which can be attractive to income-focused investors.

However, the Board's caveat that future dividends are subject to change based on financial health and regulatory constraints introduces an element of uncertainty. Investors should consider the bank's ability to sustain dividends, which depends on its operational efficiency, interest rate environment, loan performance and regulatory capital requirements. A consistent dividend policy can enhance the company's stock market valuation, but any reduction or elimination of dividends in the future could negatively impact investor sentiment and the stock price.

Understanding the implications of dividend payments within the banking industry is crucial. Banks are subject to stringent capital adequacy regulations, which can limit their ability to pay dividends. The FDIC insurance on deposits also indicates a level of security for the bank's liabilities, which is a positive sign for risk-averse investors.

Industry Analyst

Parke Bancorp's emphasis on serving individuals and small-sized businesses in specific geographic locations indicates a focused business model which can be both a strength and a vulnerability. The bank's performance is closely tied to the economic health of these regions. As an industry analyst, one would assess the economic indicators of these areas, such as unemployment rates, business growth and real estate trends, to predict the bank's future performance.

Furthermore, the bank's listing on the NASDAQ Capital Market under 'PKBK' and its full-service commercial banking operations suggest it is well-integrated into the financial markets. However, competition with larger regional or national banks, which might offer more diverse services or better rates due to economies of scale, could pose challenges for Parke Bancorp.

Additionally, the mention of FDIC insurance is a standard regulatory feature for U.S. banks, ensuring depositor confidence up to the maximum legal amount. This is especially relevant in the context of the financial stability and trustworthiness of the institution.

WASHINGTON TOWNSHIP, N.J., Dec. 20, 2023 /PRNewswire/ -- Parke Bancorp, Inc. (the "Company") (NASDAQ: PKBK) today announced the declaration of a $0.18 per share cash dividend, payable on January 17, 2024, to its stockholders of record as of the close of business on January 3, 2024.

The Board anticipates paying cash dividends on a quarterly basis, subject to determination and declaration by the Board of Directors, which will take into account a number of factors, including the financial condition of the Company and the Bank, and any applicable legal and regulatory restrictions on the payment of dividends by the Company.  If paid, such dividends may be reduced or eliminated in future periods.

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, a branch office in Collingswood, New Jersey, a branch in center city Philadelphia and a branch in Chinatown in 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; our ability to maintain a strong capital base; our ability to continue to pay a dividend in the future; our ability to enhance shareholder value in the future; our earnings and shareholders' equity; and the possibility of additional corrective actions or limitations on the operations of Parke Bancorp and Parke Bank being imposed by banking regulators, 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.

View original content:https://www.prnewswire.com/news-releases/parke-bancorp-inc-announces-cash-dividend-302020156.html

SOURCE Parke Bancorp, Inc.

FAQ

What is the cash dividend declared by Parke Bancorp, Inc. (PKBK)?

Parke Bancorp, Inc. (PKBK) declared a $0.18 per share cash dividend, payable on January 17, 2024, to stockholders of record as of January 3, 2024.

Where does Parke Bancorp, Inc. (PKBK) operate?

Parke Bancorp, Inc. (PKBK) operates in New Jersey and Pennsylvania, with branch offices in various locations including Washington Township, Northfield, Galloway Township, Collingswood, and Philadelphia.

Is Parke Bank insured?

Yes, Parke Bank's deposits are insured up to the maximum legal amount by the Federal Deposit Insurance Corporation (FDIC).

What is the stock symbol for Parke Bancorp, Inc.?

The common stock of Parke Bancorp, Inc. is traded on the NASDAQ Capital Market under the symbol 'PKBK'.